How To Retire Rich Without Lighting The World On Fire

With all the buzz these days around climbing the corporate ladder and starting businesses, it’s easy to think that building real wealth is reserved for a privileged few. I’m here to tell you that THAT is simply not true. So, if you tend to think you’ll never become rich because you have no plans of lighting the world on fire by creating the next Amazon or Snapchat, this post is for you!

If you’re new to the blog, you need to know that my husband (AKA Mr. MMM) and I didn’t start getting our financial act together until we were out of our 20s and well into our 30s. Mr. MMM was a teacher for years until he left to pursue his passion in a different industry altogether. And I have worked in corporate America since graduating college.

Our incomes are above average but we’re certainly not making investment banker wages here. In fact, Mr. MMM’s income is variable and unpredictable. My income is more predictable and also comes with the added bonus of health benefits and all that good stuff.

All that to say, we’re pretty normal. Up until a few years ago, we still had car loans, student loan debt, and credit card debt.

Then something changed. We found the FIRE community. FIRE as in Financial Independence Retire Early. We were introduced to the idea that early retirement is actually within reach for almost anyone earning a decent living.

Hey! We were earning a decent living! So we took a hot second to consider if financial independence was a good fit for us. We decided it was and a blog was born. I started Mad Money Monster to keep us accountable and entertain a few souls along the way. I’m hoping my mission is being accomplished. Feedback appreciated but not expected. 🙂

With all that said, I’m here to talk about how we are achieving financial independence without lighting the world on fire…and how you can too!

How many times have you heard stories about your grandparents walking to school in the snow uphill both ways? Have they regaled you with tales of sewing their socks when they had holes or eating lard sandwiches? C’mon, that wasn’t just my grandparents, was it?

At any rate, the point I’m trying to make is that in order to become wealthy, regardless how much money you make, you absolutely MUST live below your means. Stop comparing yourself to The Joneses and their new BMW. In case you weren’t aware of it, The Joneses are broke.

If you ever want to build significant wealth, you need to widen the gap between your income and expenses. And then buy assets with the difference. Pretty simple, really. You just have to do it – like Nike says.

[clickToTweet tweet=”GREAT NEWS, EVERYONE:  You don’t need to start a multi-million dollar company or be a Millennial superstar to become rich! – Mrs. Mad Money Monster” quote=”GREAT NEWS, EVERYONE:  You don’t need to start a multi-million dollar company or be a Millennial superstar to become rich! – Mrs. Mad Money Monster” theme=”style2″]

Increase Your Income 

Okay, I understand that widening the gap between income and expenses isn’t always possible without increasing how much you make. Although I love watching my pennies, I also admit that there is only so much frugaling that can be done until you just need to earn more money. So, do that.

Here are a few ways you can increase your income:

• Ask for a raise and you just might get one – as long as you deserve it
• Take a different job within your current company
• Look for a different job at a different company or within a higher-paying industry
• Work a second job or start a side hustle

Eliminate Your Debt

Another thing you can do to widen the gap between income and expenses is to kick debt to the curb and keep it there. It’s impossible to build wealth when you’re paying double-digit interest on STUFF you bought 2 years ago.

If you’re in debt and need to get a handle on it before you can even think about pursuing financial independence, take my free 5-day email course. It’ll get you back on the right financial track. Sign up below!

Try Frugality On For Size

It’s no surprise that we LOVE, LOVE, LOVE frugality in our Mad Money household. It’s one of the most important tools we have in our financial arsenal. By optimizing our expenses, we have been able to widen the gap more than we ever imagined. With the difference, we invest in low-cost index funds to help us build wealth.

Over the years we have adopted a selectively frugal lifestyle. What the heck does that mean? Oh, I’m glad you asked. That means we are mostly frugal. We are also willing to spend our money when we truly value something.

We truly value time together and our home. Because of that, we are willing to be a little less frugal when it comes to family vacations and making purchases for our home.

It’s highly possible your version of frugality will be or is vastly different from ours. And that’s okay. Incorporating frugality as part of your overall financial independence plan, no matter how you do it, is highly recommended if you want to be rich without lighting the world on fire.

Other articles you might enjoy:

• How To Dig Your Way Out Of Debt When You Feel Hopeless
• How To Keep Your Friends If You’re Frugal
• 9 Money Hacks That Took Us From The Poorhouse To The Penthouse
• How We’re Achieving FIRE/FIOR Through Selective Frugality
• 11 Easy Money Lessons You Need To Learn To Be Rich

Stay Married And Stay Put

Now, I know this one is sometimes out of your control, but, studies have shown that divorce can be really expensive. Studies have also proven that buying and selling several houses can really rock your bottom line over the course of a lifetime when you factor in transaction costs, realtor fees, and moving expenses.

The best thing to do for your overall financial health is to stay married and stay put. I cannot emphasize enough the importance of choosing the right partner when it comes to your money. And I’m talking from experience here. I have chosen poorly in the past and it cost me a whole bunch of money and time. Both of which I will never get back.

Same thing goes for your home. Why buy a “starter home” if you know you’re just going to upgrade in a few years? Just wait, save more money, and make your first home purchase your forever home. Short of having to move for a job or family, staying in one house will do wonders for your finances and your family.

By tweaking a few areas of your life you will set yourself apart from the crowd. And even though you might never make investment banker wages, you’ll still be able to finish rich. Woot!

Do you plan on becoming rich without starting your own business or becoming a CEO? If so, we’d love to hear your plans in the comments.