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A place for Get Rich Slowly readers to ask questions
and exchange ideas
It is currently Fri Aug 01, 2014 11:33 pm




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 Post subject: Are you using YMOYL to guide your financial decisions?
PostPosted: Fri Jun 08, 2007 12:40 pm 
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Joined: Mon Jun 04, 2007 9:52 am
Posts: 25
Location: chicago
If so, how is it working out?
If you've read the book but aren't going for it, why not?

I'm looking for a financial philosophy to recommend to my bf. He's got a good career going, but doesn't seem to be truly happy and hates having so little free time. He makes a lot of money, but doesn't have a clear idea of what he wants it for in the long term. I believe semi-retirement is feasible for him within a decade, and want to convince him to start thinking about it ... or any sort of plan.

So, please, do tell how YMOYL is working for you.


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PostPosted: Fri Jun 08, 2007 12:45 pm 
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Location: Portland, OR
Are you guys together for the long haul? If so I'd recommend you read Smart Couples Finish Rich together. I think every couple should read it (preferably before getting married) and I'm the boring friend who gives it as a shower gift. :-)

You can't force him to start thinking of a plan, but the fact that he isn't is worrying. I haven't read YMOYL yet, but it's on the list. Higer now due to all this talk about it.


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PostPosted: Fri Jun 08, 2007 12:55 pm 
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Location: chicago
I wouldn't say "force." I'd say "inspire."

We're permanent, but with no marriage plans, and our finances are completely separate.

Don't get me wrong--he isn't out blowing money on junk. He feeds his retirement fund (I think 10%, plus company matching), and most of his disposable income goes to renovating our house.

Once we're done working on the house, he could easily live on one third of his income. I just don't think he realizes how much he could accomplish if he were more serious about investing, and I hope to help him find a clearer idea and start thinking creatively about his options.


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PostPosted: Fri Jun 08, 2007 1:25 pm 
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Location: Portland, OR
Ok, sorry for using the word force... :-) It does have a negative connotation. But if someone doesn't want to/isn't ready to do something, even trying to inspire them can seem like forcing even if the intentions are good. Even though you don't mix your moey, I'd still recommend the book because it makes you both sit down and take a look at your goals - both together and separate and it sounds like that's what he's needing. It's important to be on the same page, particularly with regards to LT goals and this is just one way to facilitate that conversation.


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PostPosted: Fri Jun 08, 2007 1:47 pm 

Joined: Thu Apr 05, 2007 3:05 pm
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I've read the book at least five times and have done some of the exercises, but never got into it whole-hog. Now that I'm finally in a position to be able to achieve financial independence within 15-20 years I'm too old to bother (I'm 48)...I might as well just put my money toward retirement.

What I think could make sense for many people is a partial implementation of the YMOYL financial independence strategy. You don't have to be completely financially independent. If you can generate enough money from investments to cut back your work to part-time, that might be almost as good as not having to work at all...and in fact for some people it might be a more fulfilling option. It also makes the goal of saving less daunting. As I wrote in another thread, you probably need at least $750K in safe, no-danger-of-losing-your-principal investments to generate a stable and reliable annual income of $25-$30K. For most of us it could take decades to reach that goal. But heck even $10K/year in investment income might allow you to change jobs or shift to part time. If you're not risk-averse you can put more money in high-risk investments that could bring you a much bigger return, and then cash them in and put that in something safer to live off of. There are lots of options.


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PostPosted: Fri Jun 08, 2007 3:05 pm 

Joined: Mon Jun 04, 2007 2:20 pm
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I think it's an awesome book.

I may be a little biased since it's the first book I ever read on finance, but it is really inspiring. It really helped me to think outside the box, to be even more counter-cultural in the way we view work and money and happiness.

We are doing a modified version of YMOYL. We are being very very frugal, tracking our expenses, and eliminating all of our debt rather quickly.

I would recommend it to anyone. Even if you don't agree with every word, don't do the plan 110%... it can still be eye-opening and, in some cases, heart-changing. =)


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PostPosted: Fri Jun 08, 2007 5:07 pm 

Joined: Wed Apr 04, 2007 9:50 pm
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Location: Vancouver, Canada
I haven't read the book, but I find it reassuring that, if we cashed everything out and lived off the interest, we could still afford to rent a small 2BR apartment, get transit passes, buy groceries, pay our life insurance and provide a modest living. It's not really the life I would choose, but we could get by.

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Consultant Journal
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PostPosted: Tue Jun 12, 2007 5:18 am 
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Joined: Mon Jun 04, 2007 9:52 am
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Location: chicago
Thanks for your posts, everyone. I'll definitely be picking up YMOYL (and Smart Couples Finish Rich ... SCFR?).


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PostPosted: Tue Jun 12, 2007 5:22 am 
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Location: England
brad said:
Quote:
As I wrote in another thread, you probably need at least $750K in safe, no-danger-of-losing-your-principal investments to generate a stable and reliable annual income of $25-$30K. For most of us it could take decades to reach that goal. But heck even $10K/year in investment income might allow you to change jobs or shift to part time.


Oooh. So that means that if I had £150K in investments, I could afford to work 4 days a week. That might just be an idea. :idea:

Maybe I should get this book.

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In mathematics you don't understand things. You just get used to them. John von Neumann

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