Core Principle #5: Understand The Marginal Utility of Money
Last week a blogger colleague of mine and a guy I greatly respect, Mr. Money Mustache, asked me whether I would like to guest post one of my “brave new life” core principle series articles on his site while he’s out of town snowboarding. While I find myself intimidated by his large audience, I decided to do it anyways.
So… The next installment of the series is located on his site here. Hopefully you’ll appreciate the post, and if you’re new to MMM I highly recommend you check out the rest of his site.
Core Principle #5: Understand The Marginal Utility of Money
10 Comments to “Core Principle #5: Understand The Marginal Utility of Money”
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I really like the idea of being able to define points B & C. Seems simple, but it is a complete paradigm shift. Nice work, BNL.
Martin recently posted..Quotations #1
Hi! I came over from MMM’s blog and can’t wait to go through your archives. I am a 20-something who makes a decent salary and saves about 25% of my gross for retirement, but lately I’ve been feeling very discouraged about achieving financial freedom until my 60s, much less than in my mid-30s or 40s. Reading your blog and MMM’s give me more motivation to figure out how to accelerate my progress.
Well Heeled Blog recently posted..8-Day China Tour for $49 – Great Deal, But There are Caveats
Welcome!
25% is nothing to be ashamed of, it’s way above average. However, the math shows that 25% will take somewhere around 35-40 years to retire. Which is fine, if that works for you. My blog, and MMM’s, just put that truth out there so people realize what they’re signing up for.
Hope you’ll stick around.
Hey man, congrats on your guest appearance on MMM. Love the series.
Sean recently posted..Most Retirement Advice is Worse than Useless — Part IV: The Devil’s Due
[...] done hoping that you will win the lottery so that you can quit your crappy job, check out some sound financial advice from my financial buddy BraveNewLife. Because guess what? Winning a billion dollars won’t [...]
Do you have a post that details how you got to this stage? I know MMM has a post where he scheduled out his savings/ net worth from when he first started working in 1997. To me, 25% of gross is A LOT of money, and I can’t imagine how I can push it up to 50% without sacrificing near-term goals (travel, down payment fund, etc.) unless I substantially increase my income (which I am focusing on).
Well Heeled Blog recently posted..8-Day China Tour for $49 – Great Deal, But There are Caveats
Unfortunately, I don’t have a good record of my savings. I only started tracking things this past year when I decided I wanted to have more free time. Then I read Your Money Or Your Life and realized I can retire so soon.
The only reason I’m in the position I’m in is because I happened to make a pretty good income as an engineer, I’m naturally cheap, and I have no expensive habits/hobbies.
It’s an interesting idea for a post, though. I’ll have to see what kind of records I can pull up from my brokerage. I know my income from each year, it’s just my net worth I’ll have to find.
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