Two Financial Paths in Life

Late last night, I stumbled upon a post on one of my favorite blogs to read, 20somethingfinance.com. The post basically outlined how there is two ways to live financially; to spend freely and live for the now, and to live frugally and save large portions of your income. While I enjoyed how the author, G.E Miller, showed how our financial choices can equate to large amounts of money that we could be saving, I didn’t like how it essentially preached giving up all non-necessities in favor of saving every dime you can. However, I can completely understand the point of the article and hope that others do as well.

The point is that by optimizing your savings rate, you can not only save large sums of money and become financially secure, but also realize an American dream, EARLY RETIREMENT! The point made by G.E Miller, that if you could sustain-ably save 60% of your income each year, over 12 times more than the average American, you could retire decades earlier than your peers was eye-opening! Of course, this would be obviously true since you are vastly exceeding the savings rate of your peers, but just stating that fact impressed me. It made me think about how great something like that would be…

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