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My FI Journey » Entries tagged with "saving"

7 Ways to Increase Your Savings

7 Ways to Increase Your Savings

The key to achieving financial independence is to save and invest money.  That is obvious.  What is often not so obvious is where those increased savings are going to come from. Below, I’ve outlined seven great ways that you can boost your savings rate … Read entire article »

Filed under: Reflections, Retirement

Downsides of Extreme Saving

Downsides of Extreme Saving

I spend a of this blog focusing on extreme saving, which I would consider to be anything above 20%.  Why?  Because extreme saving is an extremely powerful tool for achieving early financial independence or retirement.  Without it, you’re going to resort to such fallback plans as rich dead relatives, becoming a drug kingpin, winning the lotto, or starting an unusually successful business.  However, most people don’t have tons of money at their disposal, so pushing … Read entire article »

Filed under: Reflections

What’s your financial independence (retirement) number?

Did you ever see those commercials where people walk around carrying a giant number under their arm?  This is supposed to represent their magic retirement number, or how much money they need to have saved up in order to retire comfortably.  Apparently, “comfortable” is a very relative term because the numbers these people were toting around seemed to vary by a couple of log orders. … Read entire article »

Filed under: Reflections, Retirement

6 Ways to Understanding the True Costs of Your Stuff

6 Ways to Understanding the True Costs of Your Stuff

Saving money is critical to achieving financial independence. As I’ve mentioned before, I’m not particularly fond of extreme frugality.  I’ve also mentioned that I prefer to make thoughtful decisions about everything that I’m going to purchase.  One of the factors that goes into that decision is how much I feel that a given purchase will improve my life.  The other factor is how much it costs.  Have you ever wondered how much something costs?  Probably … Read entire article »

Filed under: Reflections

Secrets of Super Savers Revealed

Secrets of Super Savers Revealed

Currently, the average savings rate in the US is pathetically low, somewhere below 5% (3.6% when I wrote this).  That means that people are saving, on average, 3.6% of their disposable (after tax) income.  I like graphs, so let’s take a quick look at the one on the right.  Three things pop out to me.  1) Before 1980 or so people saved around 8-10% of their disposable income.  2) After the early 1980s the savings … Read entire article »

Filed under: Reflections