Financial Stud Overnight

Years ago, there was a friend of a friend in my social circle who didn’t do too well with the ladies. I forget his name, but he was a good guy. He just didn’t have any animal magnetism. He was an average-looking man with an average-paying job who possessed average social skills. If I had to choose one word to sum him up, it would be boring.

But then something remarkable happened. I merrily walked into my default bar one night and came upon Mr. Boring with a shockingly beautiful girl at his side. And she wasn’t his coworker or his sister, she was his new girlfriend!

I remember thinking two things. First, WTF! Her with him? My second thought, though, was happiness. Like I said, Mr. Boring was a good guy. And it was nice to see that at least one Playmate-quality woman would rather have a mate with character and good sense than a mate with chiseled abs and a hot car. It gave all of us non-studs some hope.

But here’s the really interesting part of this story. Guys started to treat Mr. Boring differently. He wasn’t just there anymore. His thoughts and opinions mattered. Guys suddenly wanted to hang out with him. It was freakin’ amazing. One hot girlfriend had erased years of social mediocrity. Mr. Boring had become an Alpha-male overnight.

What Is a Financial Stud?

Don’t ask me why, but for some reason I’ve been thinking about Mr. Boring in a financial sense. Is it possible for someone, without the benefit of Powerball or a lucrative inheritance, to go from financial dud to financial stud overnight?

I think it is. But before I explain why, I first have to define what I mean by financial stud.

Given that a shockingly small number of Americans can come up with $400 without borrowing, the cynic in me says a financial stud is someone who has four hundred dollars in cash lying around. But that benchmark is ridiculously low. No one who lives with mommy and daddy and has saved half the median weekly earnings of a US worker can be considered a financial stud. Our definition has to be a little more formidable than that. For our purposes here, then, the working definition of a financial stud will be as follows.

  • Someone who is debt free (save his or her house).
  • Someone who has a six-month emergency fund.
  • Someone who is at least half Mustachean; that is, someone who has saved at least twelve and half times his or her annual expenses.

Okay, I got to cover one more thing before I explain how to become a financial stud. What’s my definition of overnight? Well, for starters, it has to be a realistic time frame. It can’t be a month or a year. But it has to be something challenging. After all, studs to do things mere mortals can’t. Hitting the above benchmarks over a sixty-year time frame isn’t that studly. But doing it in ten years or less is.

So there’s my arbitrary definition of overnight in a financial sense. Achieve the above benchmarks in ten years or less and you’re an “overnight” financial stud.

How to become a Overnight Financial Stud in Two Easy Steps

There are basically two steps to becoming an overnight financial stud: Get out of debt and save half your income for ten years. That’s it. I wish I had a more profound secret to share, but I don’t.

The math behind these two steps is pretty straight forward. According to Mr. Money Mustache, if you’re saving 50% of your income, you will have 12.5 times your annual living expenses saved in 8.5 years. If you continued to save 50% of your income for another year and a half, you would have an eighteen-month emergency fund. So overnight financial studism is doable. But you must avoid debt like the plague, and you must be super-good at saving.

Here, then, are some no-nonsense ways of avoiding debt and creating a prodigious gap between your income and your spending.