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A review by blackshirt
The Simple Path to Wealth: Your road map to financial independence and a rich, free life by Mr. Money Mustache, J.L. Collins, J.L. Collins
3.0
I read this after reading John Bogle's Little Book of Common Sense Investing. Bogle focuses on index funds for 200 pages. They're awesome, put your money there and unless you're going to make investing your full-time job. Here are the basics of this book:
Put your investments in an index fund with minimal management fees. Vanguard has VTSAX with fees at 0.04%.
Minimize your expenses by actually tracking them first. Reduce your spending to true necessities or things that bring you joy or security. Maximize the amount of income earmarked by investment.
In order and if you have them, fund your 401(k), Roth IRA, tradition IRA.
Whatever your annual expenditure is, multiply it by 25 to get your estimated amount to achieve financial independence. If you want to increase your standard of living, then modify what you expect your annual expenditure will be.
Upon retirement, diversify to include bonds, probably about 25% of your portfolio. Maybe set up a charity to give through and shelter some of the money from taxes.
For my part, I plan to move my money to VTSAX, track my expenditures more precisely, and earmark 25% of my income to investment, then increase it to 50% of my income over time.
Put your investments in an index fund with minimal management fees. Vanguard has VTSAX with fees at 0.04%.
Minimize your expenses by actually tracking them first. Reduce your spending to true necessities or things that bring you joy or security. Maximize the amount of income earmarked by investment.
In order and if you have them, fund your 401(k), Roth IRA, tradition IRA.
Whatever your annual expenditure is, multiply it by 25 to get your estimated amount to achieve financial independence. If you want to increase your standard of living, then modify what you expect your annual expenditure will be.
Upon retirement, diversify to include bonds, probably about 25% of your portfolio. Maybe set up a charity to give through and shelter some of the money from taxes.
For my part, I plan to move my money to VTSAX, track my expenditures more precisely, and earmark 25% of my income to investment, then increase it to 50% of my income over time.