Quote: (09-06-2013 02:56 AM)Beyond Borders Wrote:
A 4 Part breakdown by the author can be found on his blog here: How I Became Financially Independent in 5 Years - Part 1
WestCoast, I understand it's not something you agree with, as it doesn't suit your lifestyle needs and personal philosophies, but with out of the box thinking and going extremely frugal for a short time, it is possible. Surely you can acknowledge that even if you don't think it's ideal.
You can cut through a lot of bullshit by learning simple math.
For example, a famous basketball player claimed to have slept with 10,000 women.
A large number like that is hard for humans to comprehend. But some simple math helps us related to it.
Now the claim sounds less plausible, even for a top NBA star.
So....When a guy says he retired after working for years, lets do the math.
How much did the guy earn? How much did he save? It is possible to "live entirely off of investment income" from that?
I've spoken to many guys who live comfortable lives in Thailand off of $1,500 (although many say you need $2,500 to really enjoy yourself.)
How much money would you need to earn $1,500 a month?
$1,500/month = $18,000 a year.
How large would your investment need to be in order to kick off $18,000?
If you can generate 10% returns, you are a stud.
Thus the guy would need a principal balance of $180,000 to get that $18,000.
How did he save $180,000 in four years?
Maybe he bought a house and levered up for those returns?
Even then, how is he getting $18,000 a year after paying mortgage expenses?
See...The guy's claim is - to put it kindly - a bit "off."
Now, maybe he worked in a large law firm earning $175,000 his first year and working up to $250,000 his 4th year.
And he had no student loans and thus was able to save $180,000 over those 4 years.
But without that info, it doesn't make much sense to trust his claims.