Drudge Retort: The Other Side of the News
Friday, September 07, 2018

Fed up with their high-pressure jobs, some millennials are quitting and embracing the FIRE movement. (It stands for financial independence, retire early). Millennials especially have embraced this so-called FIRE movement -- the acronym stands for financial independence, retire early -- seeing it as a way out of soul-sucking, time-stealing work and an economy fueled by consumerism.

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Indeed, much of the conversation around FIRE, on Reddit message boards or blogs like Mr. Money Mustache, revolves around hacking one's finances: strategies for increasing your savings rate to the hallowed 70 percent, tips for cheap travel through airline rewards cards, ways to save nickels and dimes at the grocery store.

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"For almost six years, I've been preaching a different brand of financial advice from what you see in the newspapers and magazines. The standard line is that life is hard and expensive, so you should keep your nose to the grindstone, clip coupons, save hard for your kids' college educations, then tuck any tiny slice of your salary that remains into a 401(k) plan. And pray that nothing goes wrong in the 40 years of career work that it will take to get yourself enough savings to enjoy a brief retirement.

Mr. Money Mustache's advice? Almost all of that is nonsense: Your current middle-class life is an Exploding Volcano of Wastefulness, and by learning to see the truth in this statement, you will easily be able to cut your expenses in half – leaving you saving half of your income. Or two thirds, or more. Sound like a fantasy? Not to readers of this blog.

What happens when you can save more of your income? As it turns out, spending much less money than you bring in is the way to get rich. The ONLY way.

And the effects are surprising: if you can save 50% of your take-home pay starting at age 20, you'll be wealthy enough to retire by age 37. If you already have some assets now, you're even closer than that.

If you can save 75%, your working career is only 7 years."

www.mrmoneymustache.com

https://www.mrmoneymustache.com/2011/05/18/how-to-make-money-in-the-stock-market/

#1 | Posted by Corky at 2018-09-07 12:55 AM | Reply

grrrr....

www.mrmoneymustache.com

#2 | Posted by Corky at 2018-09-07 12:56 AM | Reply

I read this earlier today. Pretty interesting.

#3 | Posted by JeffJ at 2018-09-07 04:01 PM | Reply | Funny: 1

It actually reminds me a bit of what DR Joe shared about his personal life.

#4 | Posted by JeffJ at 2018-09-07 04:02 PM | Reply

Who could possibly retire in their 30's with only $1 million? You have to live on next to nothing.

If you live on only $5,000 per month before taxes and adjusting 2% each year for inflation, that's only 30 years worth of retirement. And that's a very liberal set of numbers to use. It's likely closer to 20 years if you are lucky.

#5 | Posted by Sycophant at 2018-09-07 04:54 PM | Reply | Newsworthy 1

Dude if your expenses run 5k per month you're doing it wrong.

The whole point of his method is to trim your expenses. Personally I run about 3k per month, 4k if I include the amount which goes to kids, cars, and emergency home repair.

#6 | Posted by TaoWarrior at 2018-09-07 05:54 PM | Reply

"Pretty interesting."

Based on what you find "pretty interesting", you must have the IQ of a ------- alarm clock.

#7 | Posted by Angrydad at 2018-09-07 10:08 PM | Reply

"If you can save 75%, your working career is only 7 years."

The example in the article is someone making $110,000 per year.

7.65% of a $110K wage earner goes to FICA taxes.
$110K, assuming a standard deduction of $12K, leaves $98K of taxable income

FICA taxe ares $8,415
10% of the first $9525 = $925
12% of the next $29,175 = $3501
22% of the next $38,700 = $8514
24% of the next $20,600 = $4944

TOTAL FEDERAL TAXES = $26,300
SAVINGS: 75% of $110K is $82,500

Saving 75% leaves about $100/mo for expenses, including state & local taxes.

Anyone see a math problem with these numbers? How about a reality problem?

#8 | Posted by Danforth at 2018-09-07 10:32 PM | Reply | Newsworthy 3

^taxe ares = taxes are

#9 | Posted by Danforth at 2018-09-07 10:33 PM | Reply | Funny: 1

Very doable, highly dependent on how much money one actually earns.

#10 | Posted by lfthndthrds at 2018-09-08 12:47 PM | Reply

Just a met a friend who was diagnosed with Alzheimer's. She has to pay $400 a month for one medicine and $175 a month for another.

I guess the upside is that she won't need the plan to last much longer.

Life is unfair. It sucks.

I can see why these kids want to get out of the rat race, but I would suggest waiting for a little more money.

#11 | Posted by BruceBanner at 2018-09-08 06:54 PM | Reply

Saving 75% leaves about $100/mo for expenses, including state & local taxes.
Anyone see a math problem with these numbers? How about a reality problem?
#8 | POSTED BY DANFORTH

It's only a problem if Mom thinks its' a problem.
If mom is cool with you living under her roof while you earn $110K, and if you are too, I say, go for it.
You might as well de-leverage yourself from capital before capitalists de-leverage themselves from their need for human workers!

#12 | Posted by snoofy at 2018-09-08 08:28 PM | Reply

Median household income is 59k so at 110k you are talking about being in the top 25% of income.

I wonder how many millennials make it to the top 25% by age 20?

#13 | Posted by TaoWarrior at 2018-09-08 09:19 PM | Reply

59k seems very low. I can't imagine my family getting by on that.

#14 | Posted by byrdman at 2018-09-08 09:26 PM | Reply

Welcome to America Byrdman.

2016 was the first time since I had kids we cracked the median. Mostly cause my wife was a stay at home Mom.

Most of this type of financial advice is useless to most Americans. When you support a family of 5 on 30k a year you already do this stuff just to survive saving is a dream.

#15 | Posted by TaoWarrior at 2018-09-08 09:43 PM | Reply

Anyone see a math problem with these numbers? How about a reality problem?

#8 | Posted by Danforth

Thank you.

Intuitively this sounded asinine. You put numbers to it proving it so.

#16 | Posted by jpw at 2018-09-08 11:00 PM | Reply

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