I just found this blog: http://earlyretirementextreme.com/. The title certainly is NO exaggeration! The author, Jacob, is a 30something PH.D. who lives in the Bay Area. According to his blog, he has consistently saved 70% of his net salary for several years, and have managed to have an extreme early retirement in his 30s.
Wow. Can I just say, WOW. I can’t fathom how he did it. I think somewhere on his blog he talks about fairly advanced investing techniques that has produced a nice return. Of course, he also sacrificed to save like crazy.
That path isn’t for everyone. Many people can’t imagine leaving the workforce forever in their 30s. Perhaps in my 50s – if I have accumulated a VERY significant nest egg – I’d consider doing non-profit or part-time work – of course then there’s health insurance to consider…
Even though I don’t plan on leaving the workforce anytime soon, Jacob’s blog inspired me. I am more and more drawn to the idea of living simply – of being content for what I have – of not consuming thoughtlessly (my 6-month clothing hiatus was a step in that direction).
Anyhow, back to Jacob – I really admire him for what he did, but that path isn’t for me. I find it challenging – but possible – to save a third of my gross salary at this point in my life, and so I make my choices accordingly. I am hopeful that with raises and bonuses in the coming years I will be able to save even more, percentage-wise and in absolute terms.
Those who really are gunning for an extreme early retirement, check out Jacob’s blog.