The Money Mass Balance is a powerful tool for keeping you focused on your retirement goals. Building yours is simple, so let’s walk through it step by step.
Engineering students have the opportunity to take paid Cooperative Education positions with companies while still in college. When I got my first co-op offer in my sophomore year,
I made the mistake of assuming that the Dollar per Month value they gave me was exactly how much money I was going to receive in my bank account.
I planned right out of college to retire at age 45. I later refined that estimate to age 40. At my most aggressive estimate, I saw myself retiring at 36.
Things changed when my baby girl came into the world.
Many people hear talk of quitting work entirely before age 65 and think it’s crazy talk. Surely this is something that rich people can do, but not me! I started with nothing!
News flash – most of us start with nothing.
“Nothing” can mean a lot of things.
In the recent decade there has been a lot of focus on Chemical Engineering because it tends to top charts tallying the highest starting-pay college degrees.
But most articles don’t go into why it’s a good choice from a few different perspectives. For example, Thomas Stanley wrote in his book The Millionaire Next Door that it turns out that engineers in general tend to be good savers.
Engineers turn their wealth into comfortable millions much more often than other professionals, such as doctors.
If I picked one defining principle of Chemical Engineering, it would be the Mass Balance. There’s no big mystery here but it defines everything a chemical engineer does:
ACCUMULATION = IN – OUT + GENERATION – CONSUMPTION
It’s based on the law of conservation of mass, which states that Matter cannot be created or destroyed. You can change the matter’s form (like burning wood into ash) but you can’t conjure matter from thin air or make it disappear.
Do you want to hear about retiring before you’re 65? This may be a novel concept to some – unheard of – or never even imagined. After all, our grandparents’ generation only managed to retire before 65 by benefiting from company pensions that don’t exist today. But there are simple strategies that makes retiring before 65 not only possible, but easy!
Why is 65 generally accepted as “the Retirement Age”?
It’s because of Social Security. When it was signed into law in 1935, Continue reading “How to Retire Early”
As a society we buy a lot of stuff. In the past fifty years of United States history, we’ve seen a high Personal Spending Rate of 17% in 1975 and a low of 2% in 2005. We’re not doing much better in 2016, with average rates of 5.7%. Let me stress – this is a percentage saved after taxes. So take an average American household income of $52,000, use the average household income tax of 17%, and then take 5.6% of what remains… the average American household is saving $2400. This will not add up to enough to retire on!
While we’re all busy spending our hard earned money on things, we’re robbing our future of the ability to ever retire comfortably. Happiness is not at the end of this rainbow.
This website’s mission is to spread the word about spending less, investing, and sticking to a plan.
Our financial situations are not a competition.
Friends don’t wish debt upon friends. If there were no secrets about salaries, assets, and debt, everyone would have a better view of Normal – and they’d be able to make better decisions about all of it.
My goal is to help people get started early understanding simple investing to take advantage of as much compound interest as possible.
Here are the basics I want everyone to know: