Do a little research on personal finance, and you are sure to come across the topic of retiring early. Not like 55 or 60, I mean really early.
The movement is called F.I.R.E., and it stands for “Financial Independence, Retire Early.” The idea is that you work hard and minimize your spending in your 20’s and 30’s, so you can then retire in your 40’s. From there you live a minimalist life work-free and hope your savings are enough to support you from there on out.
I do agree with the F.I.R.E. ideals when it comes to making smart lifestyle decisions to ensure you are saving money when you are young. After all, compounded interest on investments from an early age is one of the keys to retiring wealthy.
What I find troubling is that for most of us, retiring in your 40’s is nearly impossible and trying to do so without proper planning can be dangerous. This is especially true if you have a family.
Unless you are making a Rockstar income at an early age, you are going to have to take extreme financial measures to meet the savings requirements to retire at the age of 40.
For example, it would take $1.8 Million saved to provide you $72,000 in annual investment income. And of course, this does not account for emergencies that may require you to pull from your capital.
SavvyDollar is NOT about extreme frugal living to meet an early retirement goal.
SavvyDollar is about:
- Avoiding lifestyle creep so that you do not derail your savings goals.
- Prioritizing retirement savings before non-essential expenditures.
- Making sound financial investments to grow your money.
- Spending smarter and getting the most for your money.
- Using your money for the things that are important to you while also identifying expenses that are not so important.
At SavvyDollar, our motto is: “Live a good life now, and later.“
SavvyDollar Media Mentions
- Yahoo Finance: 7 Grocery Receipt Scanning Apps You Should Try
- MSN Money: 13 experts weigh in on Elizabeth Warren’s 50-30-20 spending rule
- GO BankingRates: 31 Dumb Things That Are Keeping You From Becoming Wealthy
- OPP Loans: How to Open a Bank Account
- OPP Loans: Cut Down On Vacation Costs
- Discover: Banking for Busy Parents: 4 Essential Checking Account Features
- Consolidated Credit: 19 Experts Respond: Teens, Money and Financial Independence
- Business Insider: 10 ways you didn’t know your bank could save you money
- UPJourney: What Is Financial Literacy and Why Is It Important?
- CreditCards.com: Money-saving tips for hosting family for the holidays
Hello, my name is Nermeen. I have a Business Management degree and have been working in retail banking for over 15 years. In that time, I have advised many individuals on making better personal financial decisions.
After years of helping others, my husband and I found ourselves in a personal finance dilemma when it came to our children’s education.
As many other couples found, moving to a better school district can be a necessity if you have children. Now, like many others, this is not exactly something you plan for as newlyweds.
Despite having a sound financial plan for our current situation, we were not ready for this unexpected curveball. Still, since our children’s education was our top priority, we had to make it work.
We knew moving to a new home was the right decision for our children’s education. However, we wanted to make sure we were still able to contribute to our financial goals.
- Will we have money left over for our children’s college fund?
- Do we need a more significant emergency fund?
- Can we still afford to contribute to our retirement accounts?
- Will we be able to take our annual family vacations?
Being the financial guru in the family, I knew it was essential that we created a budget that would meet our current and future goals. I began to look for ways to spend smarter, earn a little extra income, and make better financial investments.
I thought it would be great to write about all the things we tried and document in a blog. What better way to share, learn, and exchange ideas with my readers. Plus, I am learning the ins and outs on how to create a web site!
Welcome to Savvy Dollar. I hope my blog can help you take charge of your financial roadmap. Also, I look forward to hearing your ideas.
Thanks for visiting my blog!