My good friends over at Daily Trade Alert asked me to put together a multi-part series on how I retired at such an early age on a fairly modest day-job salary. So I pulled back the curtain on my entire journey, discussing the ups and downs, the saving, the investing, the hard work, and the rewards. I hope it leaves you with lasting inspiration.
This is the second article. I’m including a snippet, and then you’ll see the jump to the article. Enjoy!
They say you need money to make money. Can’t invest money you don’t have.
I used to spend money willy-nilly, much like most people do.
I spent without thought, conviction, or purpose.
In many ways, I was just following the herd. I was spending like everyone else does because I thought that was the right way to live.
And that’s really the crux of a lot of issues we have in society in general, but it’s also an impediment to being able to retire extremely early in life.
People often spend too much money, and they do so because they think it’ll make them happier.
They have this notion not because of any actual research paper or study that tells them this is so but rather because everyone else is doing it.
If seemingly everyone is living a certain way, that must be the only way to live.
Right?
Wrong.
Image courtesy of: 9comeback at FreeDigitalPhotos.net.
I enjoyed both parts 1 and 2, thanks for sharing! Does microwavable ramen continue to be a staple in your diet ? I’m not the healthiest of eaters, but I could never get into the instant ramen the way some of my college roommates did.
TJ,
Hey, no problem. Happy to share! 🙂
I don’t eat ramen any more. I actually started to throw up the last time I tried to eat it – and that was a number of years ago. After a year straight, my body didn’t want any more. Of course, a year straight of anything would have me rejecting it.
It was a great way to save money, though. And I never experienced any ill health effects. In fact, I used to laugh about that. I’d have my co-workers interested in the salt content of my meal (I’d only pinch off a very little bit of the included salt packet), while they’re wolfing down 12-inch subs packed with far more sodium than I was taking in. People are funny, though. Preconceived notions rule the day. And that’s partly what this article (and this series) is all about.
Best regards.
I think I could do all the life changes described in your article except ramen noodles… I definetily won’t be changing my good quality diet for that =D
Osinkokuningas
Osinkokuningas,
Ha!
Yeah, ramen noodles aren’t for everyone. I haven’t eaten them in years. But I still fondly remember buying a whole pack of them for around a buck.
I personally think people spend far too much time worrying about food and far too little time worrying about exercise as it relates to a healthy lifestyle, but that’s another subject for another day. Regardless, I haven’t eaten those things in years. After a year straight, my body told me enough was enough. 🙂
Thanks for stopping by!
Best regards.
Jason,
I couldn’t agree more with people focusing on food too much and not being concerned about exercising that much. We all know people who eat healthy, including organic food, and do very little in way of exercise. These people will only exercise if they have to such as walking to their vehicle or into their workplace.
Then there are people who eat chips, chocolate bars and eat lots of fast food. I have worked with some of these people and they are in excellent shape. Although, the job was very physical, these people worked out at a gym and/or were very active.
So, I believe exercising in the main key as it will make you feel more better than just eating healthy food alone. An individual who also eats healthy all the time should treat themselves to a burger, a drink or good pub food once in a while.
A person who eats crappy food all the time, unless you are Warren Buffett, is likely not going to be happy and will feel sick. The bottom line is that exercise is important, no matter what a person’s diet is like.
Anonymous,
Definitely. I think happiness is also part of the equation. Buffett has noted time and again that he eats the way he does because it makes him happy. He’ll sometimes pose a quandary where it’d be interesting to see another Buffett in an alternative universe that ate healthy his whole life, at the detriment of his happiness. It’d be interesting to see if this alternate Buffett lived longer, or if this person was in better physical health. Of course, you then have to consider whether it even matters.
I personally don’t follow an especially healthy diet. But I’m reasonable about it. And I control my portions. Moreover, I exercise religiously. I’m quite pleased with my overall physical condition.
But if you told me that I’d be even healthier and extend my life by, say, five years if I regularly ate stuff like kale and tofu, I’d pass on that opportunity. I’d rather live a happier life than a longer life. I enjoy exercising. I also enjoy eating the way I do.
It circles back to why I do all that I do. It’s a holistic and balanced lifestyle designed to maximize happiness and purpose.
Furthermore, I think frugality and the lifestyle that one adopts to retire extremely early leads to a fairly healthy diet by default. You’re not eating much. You’re controlling your portions. You’re not eating big meals at restaurants anymore. It’s pretty much built right in.
If someone else enjoys organic artisan veggie bowls, more power to them. But I don’t. I really say to each their own. It’s just a shame that there is a group of people out there who think their diet should somehow be everyone’s diet. I think it’s part of the human condition to believe that whatever you’re doing is what everyone else should be doing. And that’s just not the right way to approach things. It’s just like early retirement. I think it’s a great lifestyle. But I also acknowledge that it’s not for everyone. To each their own.
Cheers!
Hi Jason,
Thanks for sharing again your incredible journey – its always refreshing to read and provide the support and insight to remind those of us who aren’t there yet as to why we are doing this!
As always you are spot on with the spending less – that really is the fastest way to hit FI, but of course people also need to remember it is the journey that is important as well – there is no point being miserable along the way – but if you only save 20% of your income it is going to take a heck of a lot longer than if you cut out a few more things and save 50%!
Keep up the good work!
FiL
FiL,
Absolutely. If you’re really unhappy with spending less, you’re doing it wrong.
That said, I don’t believe frugality to be a sacrificial lifestyle at all. I think it’s part of a holistic lifestyle that’s designed to maximize value, purpose, and happiness:
https://www.mrfreeat33.com/its-not-about-the-money-living-frugally-and-seeking-value/
But one has to be smart about it. Living frugally doesn’t mean you live in a tent under a bridge.
Most people in our society aren’t very happy, even with all that spending. So you really have to think hard about what it is that makes you happy, and then you simply align your lifestyle with that.
Personally, I think it’s truly sacrificial to spend decades of one’s life working at a job they don’t really enjoy.
Appreciate the support. I’m so glad to have had the opportunity to recount the journey in this series.
Cheers!
Can you write on the emotional side of how fun it must be to look at your transaction statements at the end of each month and seeing the activity that takes place, I’m guessing almost daily, of dividends pouring in. What goes through your head as you look at each company and the shared profit you get as a part owner of the enterprise? If you are like me, I just get so excited looking at each transaction and visualizing the pile growing, and someone from that company handing me money. (In my mind I think the of the Scrooge McDuck money bin and it growing a little bit more, I know it’s weird). Also, every time I drive by Exxon or Walmart or Verizon stores and see people shopping, pumping gas, I just get thankful for their sound business strategies and for the transactions that are taking place.
David,
Definitely! 🙂
That’s kind of what this whole blog is about. It’s about the happiness I derive from being able to spend time on the things that actually provide a meaningful boost to my quality of life. I’m not sure if receiving dividends actually “makes me happy”. Money is just a means to an end:
https://www.mrfreeat33.com/the-money-is-just-a-means-to-an-end-not-the-end-in-and-of-itself/
It’s rather the freedom that the money provides that improves my happiness, which manifests itself through all of the activities I now have far more time and energy to participate in. I’d encourage you to poke around the site a bit more, if you haven’t already. This site is about life after financial independence/early retirement. 🙂
Best wishes!
Hi Jason,
Have been following your journey for about 2 years now and I continue to do so… I guess it speaks to me :). Right when I came across DM I started with dividend growth investing myself. I owe you a ton of gratitude for getting me started, educating me and keeping me inspired.
I just did my 2017 projections and I came at 2400 USD of passive income for the year, which I am really pleased about! Also thinking about starting a – modest – blog to keep myself motivated and being able to connect with people who were in my situation two years ago. Just need to make sure I have the time and motivation given that I have a demanding day job.. we’ll see.
Anyway, my question is the following. You advocate a frugal lifestyle and living (way) below your means. Do you ever wonder that if – hypothetically speaking – your message catches on to a growing audience, consumption will decrease and therefore the profitability of the companies you invest in? Companies like TIF, WSM, AAPL thrive on lavish consumer spending. Or do you bank on the fact that the vast majority of people will always keep running the consumption and spending treadmill?
Anyway, all the best for 2017!
TI,
Hey, that’s fantastic! Keep up the great work.
I’ve done my best to reach out and inspire. And when I see that others have taken the message to heart, making major changes to their lives and seeing the positive effects in real-time, it just blows me away. I’m so happy to be in that kind of a position to help people.
As for your question, I don’t worry about that at all. This lifestyle isn’t meant for everyone, nor should it be. The opportunity for the masses to live this way has been available for a long time now. I always think back to Keynes predictions about how we’d all be taking advantage of short workweeks by now, but his prediction fell short because he discounted people’s desire for more stuff. I see that desire as strong as ever. It’s just not a desire that I (and a small percentage of other people) share. To each their own. Many people continue running faster and faster on a treadmill, getting nowhere. At the same time, many people refuse to open their eyes. This has been going on for many years now. I don’t see changes to that model en masse happening anytime soon.
All the best to you, too! Keep it up.
Cheers.