Snow Cover

January 27, 2014Tagged Photos, Martin

This forest is a short walk from my apartment in Ă…tvidaberg.

The Quickest Way to Get Rich

January 24, 2014Tagged Martin

We'd all like to be free to do whatever we want. But most dismiss that dream with "If only I were rich..."

Well, I made some money by selling Blocksworld. I then made some more money by working at Linden Lab. It certainly didn't make me rich, but it gave me a comfortable "runway" for launching my next project.

Computing your runway is a standard business practice. You simply divide your assets with your monthly spending. That's how many months you have to develop the product you dreamt up before it needs to become profitable. And that's the computation I did.

Then I found It was one of those aha moments! I'd heard Earl Nightingale say that "the quickest way to get rich is to make more and spend less," or something to that effect. But the latter part of that expression never really sunk in, until I read the early retirement blog.

So I reversed the calculation. Suppose I stretch my runway all the way to retirement. How much would I have to live on each month? Well, I'm 35 years old and in Sweden you can retire at 61. (People keep telling me the retirement age is 65, but that's simply not true.) That means I only have 26 years left! After the initial shock of realizing how old I am, I also realized I might just be able to stretch my runway, indefinitely.

I decided to go for it! I have sold my car, payed off my debts, and moved to a one room appartment in a small town where rent is cheap. I don't travel, don't eat out, and don't buy needless gadgets and clothes. I no longer have an office, a gym membership, or a TV.

What I do have is a computer, Internet, and complete freedom to do whatever I want. I could spend the rest of my life reading books on the couch, make games, or research AI. And that, is priceless.

If you've ever thought "If only I were rich..." I encourage you to open your favorite calculator app and compute exactly what rich means. I bet it means less than you would have guessed.