Comments on: The Simple Systems to Kicking Monetary Ass https://clippingchains.com/2020/07/13/the-simple-systems-to-kicking-monetary-ass/ Funding the Adventurous Life Wed, 29 Jul 2020 16:08:38 +0000 hourly 1 https://wordpress.org/?v=7.1.3 By: Mr. Clipping Chains https://clippingchains.com/2020/07/13/the-simple-systems-to-kicking-monetary-ass/#comment-1740 Wed, 29 Jul 2020 16:08:38 +0000 https://clippingchains.com/?p=5296#comment-1740 In reply to Andrew.

Hey Andrew, thanks for the news and thanks for coming over!

]]> By: Andrew https://clippingchains.com/2020/07/13/the-simple-systems-to-kicking-monetary-ass/#comment-1738 Wed, 29 Jul 2020 13:10:20 +0000 https://clippingchains.com/?p=5296#comment-1738 Just found your blog as you got featured in the PFB this morning. Love your take on personal finance and the climbing take.

]]> By: Mr. Clipping Chains https://clippingchains.com/2020/07/13/the-simple-systems-to-kicking-monetary-ass/#comment-1726 Tue, 14 Jul 2020 21:31:15 +0000 https://clippingchains.com/?p=5296#comment-1726 In reply to Briana.

Hey Briana,

Thanks for the comment and question. First off, congrats for crushing the game on saving 50%! You are right: if you don’t invest, and you just save only in a savings or checking account, you most certainly won’t reach financial independence in a reasonable timeframe. The chart I posted assumes your savings are generating a 5% yearly return in some sort of investment, which is actually quite conservative. Most savings accounts get 1-2% interest (at best), while inflation is 2-3%. If you don’t invest, you might be losing money in the long run. We have invested in passive index funds, which over the long-term generate about 7-10% a year, which compounds your savings. I’ve written a lot about this, so certainly click around the site. Or, for the hands-down definitive guide to passive index fund investing, I recommend JL Collins’ stock series.

]]> By: Briana https://clippingchains.com/2020/07/13/the-simple-systems-to-kicking-monetary-ass/#comment-1725 Mon, 13 Jul 2020 21:58:25 +0000 https://clippingchains.com/?p=5296#comment-1725 Hey Chad, I don’t understand how one could potentially save 25x their annual expenses. Are you assuming incredibly high salary and incredibly low living expenses, resulting in someone being able to save almost all the money they are making? How is that realistic? I make decent money, have chosen a low cost of living with my tiny house and tiny car that gets 50 mpg, and I spend minimally on food. I save about half of my income, and it would still take me more than 20 years to save 25x my annual living expenses. What am I missing here? Are you expecting people to have 25+ years of saving to reach financial independence? Because I think that’s just called (early) retirement, and not that early. ?? Thanks.

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