Comments on: Early Retirement: Lessons to Learn from People who Achieved It One couple's story of escaping 9 to 5 until 65 Wed, 20 Jul 2016 17:22:09 +0000 hourly 1 By: Amy Nickson Tue, 22 Dec 2015 10:38:03 +0000 I am glad that you like my article,

Following a budget doesn’t mean to be a slave to a pattern. A budget helps you to track your money, after all, you must know where your money is going. For instance, the family with 5 members have so many expenses to consider. A budget helps to meet those expenses and put a certain amount of money into a savings account.
If you can manage your money and expenses without following a budget, then it’s always appreciable. 🙂

By: Amy Nickson Tue, 22 Dec 2015 10:01:25 +0000 Many Thanks for your valuable reply,

Yes, you’re right on your view. Not spending the principle sounds overly cautious. One can always invest a certain amount of the principal for a better return, but, make sure the investment is secured otherwise it can arise a massive financial problem. People who have less knowledge about investment shouldn’t risk their principle.

By: james Tue, 22 Dec 2015 06:59:07 +0000 I like the concept about “Think about passive income sources”

By: Financial Velociraptor Sat, 19 Dec 2015 03:27:21 +0000 I liked this but have to disagree on the budget part. I went FIRE and have never had a budget. I believe in the anti-budget approach. Establish an amount to save and put it away first. Spend the rest guilt-free. You don’t feel deprived and you still meet your goals. It helps to be legitimately frugal but you don’t have to be a slave to a schedule.

By: Stockbeard Fri, 18 Dec 2015 20:53:31 +0000 Good article, but I’d disagree with this statement:
“You shouldn’t spend the principal”
I think this is one reason so many people never Retire Early, because this approach is too conservative. the 4% rule has studies backing it up that you can (and should) spend some of your principal. Not spending the principal is, historically, equivalent to have “too much” money for your goals.
If the goal is to retire early, then one should take advantage of all the aspects of investments, and not be overly cautious.
I agree it’s all about reaching a balance, as you mentioned, one shouldn’t count on a “large inheritance” as part of their plans for example. But not spending the principal sounds overly cautious based on studies.