Jan and John are imaginary friends of mine. They met in High School, fell in love, and decided to get married after graduation, in 1992.
They made a plan which called for sacrifices so that they could be financially independent.
- They decided they wouldn’t go to college
- They decided they wouldn’t have children until they were 40
- They decided to continue their jobs at McDonalds and Burger King, working full time at one and part time at the other – 6000 hours a year between them
- They would save half their earnings, and make their nest egg grow by 3.5% every year.
- They expected that, as they gained experience, they would get raises averaging 3.5% every year.
They expected, using these assumptions, that at age 40 in 2014, they would have almost $1,000,000!