2932: [Part 2] You Don’t Have to Make $100,000 a Year to Retire Early by Mrs. 1500 of 1500 Days on Saving Money

[00:00:01] Dieser komplexe Finanzierungstalk ist ganz schön anstrengend. Ob ich mein Depot jemals angelegt kriege?

[00:00:06] Aber du hast doch schon ein Depot.

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[00:00:09] Doch, du hast das Vodafone Gigadepot.

[00:00:11] Ach, stimmt! Und da habe ich ja selbst in der Hand, wie groß mein Depot ist.

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[00:00:27] Kundenservice kontaktieren? Für viele Menschen ist das der beste Weg, einen schönen Tag zu ruinieren.

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[00:00:43] Denn während einige behaupten, dass der Kunde immer Recht hat, sagen wir, dass KundInnen immer Menschen sind. Und da wir auch Menschen sind, wollen wir etwas Gutes für uns alle tun.

[00:00:52] Zendesk. Customer Experience mit KI für Menschen gemacht.

[00:00:56] This is Optimal Finance Daily. You don't have to make $100,000 a year to retire early.

[00:01:02] Part 2 by Mrs. 1500 of 1500days.com.

[00:01:07] And I'm your host and personal finance enthusiast, Diana Merriam.

[00:01:11] Today's post is actually a continuation from yesterday.

[00:01:15] So if you're new here, it'd be best to listen to yesterday's episode first.

[00:01:19] But if you're all caught up, let's hear Part 2 and continue optimizing your life.

[00:01:28] You don't have to make $100,000 a year to retire early.

[00:01:32] Part 2 by Mrs. 1500 of 1500days.com.

[00:01:38] Number 8. Find a way to make extra money using what you know.

[00:01:43] I snowboard and know a bit about snowboards.

[00:01:47] Having just moved to an obscenely wealthy part of Colorado, there are a lot of last year's model snowboards at the thrift store.

[00:01:54] During the winter months, I don't buy them because they're hundreds of dollars.

[00:01:59] But over the summer, I bought four boards for $25 each.

[00:02:04] Name brand boards, some with bindings, for $25 each.

[00:02:09] I'll sell them for at least $75 each.

[00:02:12] And I just made $200 for taking a few pictures and storing a few snowboards in my basement for six months.

[00:02:19] I'll take that.

[00:02:22] Number 9. Can't beat the high-paid computer people?

[00:02:26] Join them.

[00:02:27] Go back to school on the internet and learn for free or very cheap.

[00:02:32] Stanford University publishes lectures through the App Store, iTunes U.

[00:02:38] Go to school at MIT for free.

[00:02:41] Code Academy has all kinds of great classes and so does Treehouse.

[00:02:45] Worried about lack of experience?

[00:02:48] Code a killer iPhone app or website and people will be clamoring to hire you.

[00:02:54] Number 10. Make your coffee at home.

[00:02:57] Starbucks is a great treat, but every day gets expensive real quick.

[00:03:02] The one by my house routinely has a line of at least 10 cars in the drive-thru every morning at any given time.

[00:03:08] Let's say each car takes two minutes to get their drink.

[00:03:11] That's at least a 20-minute wait just for your caffeine.

[00:03:15] And not to mention all the gas being wasted, all the fumes being emitted, etc.

[00:03:20] All because you didn't wake up in time to make your own coffee?

[00:03:24] Number 11. Shop at the thrift store for everything but underpants.

[00:03:29] Do you need new clothes?

[00:03:31] Hey, the Goodwill or Salvation Army has just what you're looking for.

[00:03:35] Maybe.

[00:03:36] But they do have something that will fit your bill.

[00:03:39] They also have sales.

[00:03:41] Need a new pair of black pants?

[00:03:43] Why pay $20 or more at a retail store when you can buy a pair that looks brand new for less than $6, usually.

[00:03:51] One thing to remember when thrifting.

[00:03:53] Check everything carefully.

[00:03:56] Some thrift stores don't allow returns, and some do.

[00:03:59] Make sure you realize that zipper is broken before you buy it at a thrift store that doesn't allow returns.

[00:04:05] They sell almost everything, and you just have to take time to really look.

[00:04:10] And even if the zipper is broken, as long as they fit, that can be fixed.

[00:04:15] Find a good dry cleaner or tailor and have them fix it.

[00:04:18] Or better yet, learn to sew.

[00:04:21] Zippers are an advanced sewing skill, so better let the pros do it until you learn how.

[00:04:26] Number 12.

[00:04:28] See the matinee.

[00:04:30] Or better yet, wait until it comes out at Redbox.

[00:04:33] A dollar movies?

[00:04:34] Yes, please.

[00:04:36] Or on Netflix.

[00:04:37] Or at your local library.

[00:04:39] I still go to the movie theater, but only for a kid's movie treat for the girls.

[00:04:43] Or a movie I really, really want to see in the theater.

[00:04:47] Number 13.

[00:04:48] Share babysitting.

[00:04:50] I have a friend who has two daughters.

[00:04:52] Her oldest is the same age as my youngest.

[00:04:55] And they get along very well.

[00:04:57] My oldest loves spending time with her youngest, so we can swap babysitting.

[00:05:02] She watches my girls while the 1500s go out on a date, and then I watch her girls while

[00:05:08] she and her husband go out on a date.

[00:05:10] Plus, I know she's a great mom and is good with my girls.

[00:05:14] Number 14.

[00:05:15] Don't buy books.

[00:05:16] Accept anything that I publish.

[00:05:18] Then buy 12 copies.

[00:05:20] They make great gifts.

[00:05:22] Your local library is knowledge central.

[00:05:25] Want to learn to cook?

[00:05:26] Borrow a cookbook from the library.

[00:05:28] Want to learn to sew?

[00:05:29] Library can help you there, too.

[00:05:31] How about teaching yourself computer programming to earn more money?

[00:05:35] Ding, ding, ding.

[00:05:36] You guessed it.

[00:05:37] The library can help you there, too.

[00:05:39] Most libraries are part of a library's system and can borrow books from other branches.

[00:05:44] Ask your helpful librarian to show you how to navigate their website.

[00:05:49] Number 15.

[00:05:50] Stop giving gifts.

[00:05:52] I have everything I need.

[00:05:54] You have everything you need.

[00:05:56] Just because we know each other, somehow, we're obligated to purchase something for each

[00:06:00] other at Christmastime.

[00:06:01] I can't tell you how many times I bought something.

[00:06:04] Something for someone just because I felt the obligation.

[00:06:08] Hmm, this scarf is soft, and she lives in a cold-weather state, so I'm sure she needs one.

[00:06:14] No, she really doesn't need one.

[00:06:16] She already has one.

[00:06:18] I received a gift card for Victoria's Secret this Christmas.

[00:06:21] I went into their stores to look for undergarments and was surprised to find that they don't carry

[00:06:27] anything larger than a large, which looked really teeny tiny to me in their stores.

[00:06:32] They carry extra large on their website.

[00:06:35] When I went online, I discovered their least expensive undies are five for $28.

[00:06:41] I closed their website and have re-gifted that card to my sister.

[00:06:45] Don't tell her.

[00:06:46] I didn't need that card, and I didn't really want it.

[00:06:49] It was purchased for me because the giver felt obligated to give me something.

[00:06:54] I'm all for gifts that remind you of the recipient.

[00:06:58] I found an ice cube tray that makes octopus-shaped ice cubes.

[00:07:02] My sister-in-law loves all things octopus.

[00:07:06] $2.

[00:07:07] I'm happy to give this gift because she will be happy to receive it.

[00:07:11] Number 16.

[00:07:12] If it isn't broke, you don't need a new one.

[00:07:15] Just because you've had that thing forever doesn't mean you need a new one.

[00:07:20] My coffee pot is old.

[00:07:22] Really old.

[00:07:23] The clip that holds the lid down broke a long time ago.

[00:07:26] It won't make coffee if the lid isn't down.

[00:07:28] But rather than throw it out, I got a piece of wood that is heavy enough to hold it down.

[00:07:32] And voila, my coffee gets made.

[00:07:35] I paid $40 for this coffee maker probably nine years ago.

[00:07:39] Still makes good coffee.

[00:07:41] No need to get another one.

[00:07:43] Same goes for your purse, shoes, car, house, etc.

[00:07:47] Number 17.

[00:07:49] Stop before you buy.

[00:07:51] Think about your purchase before you make it.

[00:07:54] Do you really need that?

[00:07:55] Is that the best price you can find?

[00:07:57] Is it an impulse purchase?

[00:07:59] Go home and think about it.

[00:08:01] Think for a day.

[00:08:02] Or a week.

[00:08:03] Or even a month if it's a big purchase.

[00:08:05] Some things you need right away.

[00:08:07] Anyone ever run out of toilet paper?

[00:08:09] And you can't look around at prices because beggars can't be choosers.

[00:08:13] So try not to be a beggar.

[00:08:15] And number 18.

[00:08:17] Last, but certainly not least.

[00:08:19] Choose your life partner wisely.

[00:08:22] This is the absolute most important decision you will ever make.

[00:08:26] So take your time and do it right.

[00:08:29] If you want to live a frugal life, dating someone who wants to stand around and look slick all day isn't a good choice.

[00:08:36] Don't fall for a beautiful face or a hot body.

[00:08:39] Look at their decisions and see if there's something you can live with.

[00:08:43] If not, cut your losses early and move on.

[00:08:47] Don't settle for less than what you want.

[00:08:50] They won't change unless they want to change.

[00:08:53] Divorce is expensive.

[00:08:54] If you have children with the wrong person, it is even more expensive.

[00:08:59] Choose wisely and be happy.

[00:09:02] Mr. Money Mustache, Brave New Life, and Mr. 1500 all have had high-paying computer jobs.

[00:09:09] Good for them.

[00:09:10] However, income is only a part of the equation.

[00:09:14] Mr. 1500 has a friend who makes $150,000 a year and still lives paycheck to paycheck and is in a ton of debt.

[00:09:23] You can make $40,000 a year and retire when you're 50.

[00:09:27] You can also make $120,000 a year and still have to work when you're 75.

[00:09:33] It's all about choices.

[00:09:35] Choose wisely.

[00:09:40] You just listened to part two of the post titled,

[00:09:43] You Don't Have to Make $100,000 a Year to Retire Early by Mrs. 1500 of 1500days.com.

[00:09:51] And I'll be right back with my commentary.

[00:09:54] Buy low, sell high.

[00:09:55] It's easy to say, hard to do.

[00:09:58] For example, high interest rates are crushing the real estate market right now.

[00:10:03] Demand is dropping and prices are falling, even for many of the best assets.

[00:10:09] It's no wonder the Fundrise flagship fund plans to go on a buying spree,

[00:10:14] expanding its billion-dollar real estate portfolio over the next few months.

[00:10:18] You can add the Fundrise flagship fund to your portfolio in just minutes and with as little as $10 by visiting fundrise.com slash OFD.

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[00:10:36] Carefully consider the investment objectives, risks, charges, and expenses of the Fundrise flagship fund before investing.

[00:10:45] This and other information can be found in the Funds Perspectus at fundrise.com slash flagship.

[00:10:53] This is a paid advertisement.

[00:10:56] I think the concept of FIRE is pretty agnostic when it comes to level of income.

[00:11:02] The only thing that matters is that you spend less than you earn.

[00:11:05] This does become more challenging when you earn less, but it isn't impossible.

[00:11:11] As demonstrated in this article, it simply requires more thoughtfulness, creativity, and resourcefulness.

[00:11:17] If you have the right attitude, it can actually be fun to figure out creative ways to get your needs met.

[00:11:23] The person who can live on $25,000 a year and save $25,000 a year retires in the same amount of years

[00:11:31] as the person who needs $50,000 a year to live and saves $50,000 a year.

[00:11:36] One of the most popular speeches from the Economy Conference, which is an event I produce,

[00:11:41] is from Jackie Cummings Kosky, who got up in front of hundreds of people

[00:11:46] and shared her real numbers on how she retired in 10 years.

[00:11:50] What was so compelling about it was that she was 38 when she got started,

[00:11:55] and she was a single Black mother making less than six figures.

[00:11:59] She did that speech as she pulled the plug on her career at 49 years old.

[00:12:05] And you can check it out now on the Economy Conference YouTube channel.

[00:12:10] And that's another edition of Optimal Finance Daily in the books.

[00:12:13] I'll be back with more for you tomorrow.

[00:12:16] So have a great rest of your day, and I'll catch you on the Tuesday show,

[00:12:20] where your optimal life awaits.