While digging through Larry MacDonald’s archives, I came across a post where he talks a bit about young investors. He eloquently articulates what I am trying to do right now to accomplish an early retirement.
His advice is to live WELL below your means (he suggests 40-75% of income) instead of the typical 5-15% for a few years when starting out. You won’t miss the lifestyle (since you’ll keep living the way you were before), and by delaying starting a high-consumption lifestyle, you’ll build a nest-egg that will give you many options down the road.
I’ve basically been living this way since I graduated from university. Instead of rapidly building up a nest-egg, I’ve used the low-cost lifestyle to have periods of travel, school and not working (and not working on my own steam, not by using welfare or social assistance or anything like that – I’ve always stood on my own two feet).
I’m hopeful that I might be able to spend a few years, build up the nest egg, then do whatever I want with the rest of my life.
Its always nice to come across someone who seems thoughtful and intelligent who thinks the same way you do :-).
Want to learn more about RESPs? Buy The Book:
The RESP Book: The Simple Guide to Registered Education Savings Plans
Everything you need to know about RESPs.