Fast track to early retirement inspiration

I randomly came across the blog Early Retirement Extreme today while not even looking for anything to do with the topic, but wow is it ever a good extra push for me!

The points on maximizing savings are good ones. I always thought my 15%+ guideline was good enough, but I can definitely push it higher if that means reaching financial independence sooner! I worked with my numbers and while I can’t do the 75% without some major life changes (moving would be one big one, I do after all live in downtown Vancouver and rents are what they are), I figure I should be able to easily do 41%. If my math is right, that means I should be able to reach financial independence by 50. Not quite the 37 I’m aiming for but better than 65.

That is a good start and I am happy with that. If I were willing to spend the next 19 years without leaving Vancouver, I could do 51%, but life is for living and I’m willing to postpone financial independence another 4 years for a vacation once in a while.

So this is how I’m going to be dividing my pay cheques:

  • 45% on all monthly spending – including regular expenses and splurging (previously it was 60%)
  • 10% on long term savings – vacations and other life enhancing goodness (previously 20%, half of which was supposed to be for education and other knowledge enhancing activities)
  • 4% on gifts – could be readjusted but i want to see how this goes (down from 5%)
  • 41% savings and investments – (previously 15%)

Let’s see how this rolls!


1 Response to “Fast track to early retirement inspiration”

  1. 1 Ooops « centsprout Trackback on October 2, 2008 at 10:20 pm

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