+1msk wrote: ↑Wed May 15, 2019 5:50 amI came to this approach in discussions with a childhood buddy (same age) when we were in our early 30s and just starting to make reasonable incomes. He had never gone to college due to family circumstances and I had a PhD but our earnings kept pace throughout life. We did worry that there is no point in making money for its own sake and we both bought the top Mercedes S Coupes of the day new when we were 37, and we both retired at 55. Unfortunately my childhood buddy died this year at age 74, but he did leave behind an 8 figure legacy, despite all the fancy toys we ploughed through over the decades. It works! Start with 30% save-and-invest early in life and stick to it religiously.Schlabba wrote: ↑Wed May 15, 2019 5:33 amInteresting approach. Currently my goal is to achieve financial independence as soon as possible, therefore even with a decent net worth for my age there is no room for luxury.msk wrote: ↑Wed May 15, 2019 5:10 amI prefer to look at my income, not NW. I assume roughly 5% net on stocks (of course varies up and down but that's a good assumption on average), whatever comes net on rental RE, plus job income. Save and (re)invest 30% of total net income, spend the rest guilt free. If followed religiously over your 30s and 40s, you ought to run out of toys to yearn for by your late 50s. By your 60s/70s you ought to feel wealthy enough to tend towards philanthropy.
Maybe I should also limit my investing to a percentage or absolute number and enjoy the rest.
Life is lived in the present.
Once I save enough to hit my savings goals, I budget to spend the rest.