Yesterday I read an article titled “How to Save $100,000 by Age 25” published on Stuff, written by Richard Meadows. The article is also published on his blog: thedeepdish.org. The title obviously grabbed my attention! Who wouldn’t want to have saved $100,000 by the time they are 25? Unfortunately, I am already 27, but here’s hoping I am not beyond saving…
Here are my (overthinking) thoughts as I read this article:
Firstly, disbelief. And this was before I even clicked on the article. I mean, seriously, is this possible? He has saved $100,000 by 25?! That’s crazy! And seriously impressive…
Then I head to denial. Surely, this isn’t possible, he must have had help from rich parents. Or had a super high paying job. Or he has been working since he left school at 16. Oh no, he says he only came across this idea in 2013. That’s only three years ago.. This can’t be real, who can save $100,000 in three years?
Next, awe. He did this in three years??
Well, now I feel inadequate. Where have I gone wrong? I don’t have any savings at all! Wait, net worth… how do you calculate that? Make a mental note to google that later. Actually, better make a note on my phone too, it sounds pretty important…?
Ok, now I am inspired. Obviously, I am past 25, but maybe I could save $100,000 by the time I am 30? That’s only three years away. So how did he do it? Wait, there’s an actual “financial independence” movement. Another note on my phone, this is starting to sound very interesting. And now he is saying this isn’t a scam (that means it’s definitely not a scam right?!) and his secret? Spend less than you earn, use compound interest to your advantage. Compound interest – guess I should learn about the power of that too, another phone note. (side note: where would we be without phones?)
Fear.. I’m reading a few new terms here, this sounds a bit scary. Maybe I can’t do this. I mean, I like spending money, I need to spend money, how else will I survive? There is no way I could do this!
But then comes the realisation: I don’t want to work at my job for another 40 years. I want to have adventures! Sure, it may take me longer than three years. I might need more money to live the life I want. It will be a hard slog for a while.
Finally, grit: what have I got to lose? I only have my life to gain. So why not try?
Thanks for writing this article, Richard, and for showing us that a different way is possible. I’m off to calculate my net worth!