The idea behind financial independence is that your passive income — typically through investments — is enough. But how much is enough? Enough for what? The typical reaction that many people have to this question is to define “enough” based on their current standard of living. For example: “Right now, my spouse and I are 27 and 29, with one child, age 2, and we live in San Diego, and our expenses are $5,000 per month. That’s our definition of enough, and as soon as we reach $5k per month in passive income, we’ll be financially independent (FI).” Hmmm. I don’t think you need to be a master logician to spot the holes in this[…]
How to Stop Talking Yourself Out of Your Dreams
I once asked my friend Monica: “What would you do for a living, if you could do anything in the world?” I expected her to pause, but she knew the answer immediately. “I’d open my own clothing boutique,” she said. It was a fitting response (no pun intended). There’s a positive feedback loop between talent and passion. We enjoy what we’re skilled at, and we’re skilled at what we enjoy. Monica loves clothing; every outfit she wears is a masterpiece. Monica lives in a city of 5 million people. She could certainly find a niche for her boutique somewhere in her city. It’s an achievable dream. It requires hard work, but the formula is established: Raise funding.[…]
This was Every Landlord’s Nightmare …
The excellent, the normal, and the terrible. Two weeks ago, I saw them all. I’d like to share the harrowing story. It’s a story of triumph, resilience, and late-night burritos. A story that immersed three days of my life — and is now over, chapter closed, with nothing else needed for at least another year. It’s the story of three rental units: One that’s excellent One that’s normal One that’s everybody’s worst nightmare Let’s start with the horror story[…]
I’m 34 Years Old and Own 8 Homes. Here’s How I Did It.
Well hey, would you look at that!! Money Magazine wrote a huge feature on my real estate investments. And they NAILED the headline. Damn. I’m 34 Years Old and Own 8 Homes. Here’s How I Did It. I’ve been writing about real estate investing since the beginning, and I never thought of a headline that clever! Whoa. I get the +1 for rental properties, and they get the +1 for headline-writing. 🙂 I’ve been reading Money Magazine for more than a decade; I’m thrilled to see myself get featured in it. Seriously, check out this article. And thank you for being along on this crazy, epic journey. ____[…]
15 Insightful Books about Investing, Money, Work and Life
I love to read. If you share my enthusiasm, you might enjoy this variety of books about money, work and life that I recommend. Feel free to scroll, or click on one of these links to skip ahead to your favorite section. Productivity Books Money Mindset Books Investing Books Real Estate Books Productivity Books Deep Work, by Cal Newport I’ve raved about this book several times, and I’ve also interviewed Dr. Cal Newport on my podcast, where he shared his tremendous insight into productivity and focus. If you’re tired of getting distracted by email, social media, and small tasks, read this book.[…]
Our Rental Properties Collected $125,618.49 in 2017. Here’s How Much We Kept.
Hey! I know you love numbers, so I’ll cut to the chase: Last year, our rental properties earned $125,618.49 in gross income. After expenses (including the mortgages), the properties netted $43,211.67. This is our passive income from real estate in 2017. It’s the cash flow the properties put in our pocket last year. And this is how we’ve reached financial independence through real estate. […]
Your Money? Or Your Life?
There’s a scene in a classic 1950’s TV show, The Jack Benny Program, in which a mugger points a gun at the title character. “Your money or your life,” the mugger says. Jack Benny is silent. “I said, your money or your life!” the mugger repeats. “I’m thinking it over!,” Jack replies. (You can watch it here. The mugger scene starts at 19:55). The scene is funny because it’s absurd. When we face a choice between our money or our life, of course we’d rather live. But day-to-day, most of us exchange our precious hours for a paycheck. We prioritize money over our life.[…]
Today is My 10-Year-I-Don’t-Have-A-Job-AVersary
Today is the 10-year anniversary of the day I quit my job. More accurately, it’s the 10-year anniversary of my last day of employment. Exactly 10 years ago today, on April 4, 2008, I finished my final day as a salaried employee. I have never been employed by someone else since. The notion that 10 years have passed since that fateful day sounds crazy. Ten years isn’t that long. It’s one-third of a 30-year mortgage. But volumes have filled the cavernous space between April 4, 2008 and April 4, 2018. When I quit, I didn’t have any concept of financial independence. I had no intention of staying out of the workforce permanently. I assumed[…]
Timeline vs. Intensity
“My dreams feel impossible. Everything is so far away. Five more years until I pay off the car. Twelve more years until I pay off the house. Do I have to wait until I’m 50+ to enjoy life?” ______ Let’s say you have a goal that’s audacious and unconventional. You want to create $45,000 per year in passive income. Or you want to live 100 percent debt-free. Or you want to spend a year traveling across Europe, South America and Southeast Asia. Maybe you’d like to take 6 months off work to garden, exercise, and spend time with your kids. Or to focus full-time on starting a business or becoming an artist. How soon can you[…]
Here’s a Counterintuitive Idea for Your Retirement …
Once upon a time, in southern California in 1994, there lived a man named William Bengen.⠀ His friends called him Bill. Bill was born in Brooklyn, and he studied aeronautics at MIT. He wrote a big paper on advanced model rocketry. Then he became an executive at a soft drink company. Finally, 17 years later, he retired to sunny southern California. Well, kinda. Bill was smart and full of energy. He couldn’t stay retired for long. He decided to get a masters in financial planning. He opened his own firm. And he started reading papers that … bemused him. You see, at this time, many financial planners were claiming that since[…]
