I’ve learned a ton during the past decade, thanks to reading, interviewing, and massive trial-and-error. I’ve distilled many of these lessons into today’s blog post. Here are 17 lessons that can improve your money and life. #1: Money Can’t Make You Happy, But Lack of Money Can Make You Unhappy They say, “money can’t make you happy.” But that’s false. Researchers have examined the link between money and happiness — and guess what? Money can make you happy, to an extent. Multiple studies found a significant correlation between money and happiness among people in low-to-middle income brackets. More money = more happiness, up to a certain level. That’s not surprising. If you used to earn $30,000 per year,[…]
Category: Freedom
“We are literally the millionaires next door”- says me, to the Washington Post
Guess what? The Washington Post published an interview with me about the Financial Independence, Retire Early movement (the FIRE movement). They asked if it’s possible to save half of your income. They asked about the accuracy of Suze Orman’s statement that you’ll need $5 million to retire early. (Spoiler alert: No. You don’t.) And they asked if everyone who reaches financial independence then spends their time blogging about said topic, because if that’s true, then what’s the point? (I answered a similar question in this week’s podcast episode, as well.) Here’s a snippet from the Washington Post[…]
Why the FIRE movement is misunderstood
The FIRE movement is misunderstood. The drama of the last two weeks proves it. The question is, how can we fix this? Ohhh we have a new supporter!! Last week, Suze Orman called FIRE “dumb and stupid.” “When I was 30 I was dumb and stupid as well, okay?,” she said in an interview with Yahoo! Finance, adding that she’s “pissed off” at people pursuing early retirement. But since then, she’s taken more time to learn about the movement — and she’s in support. In a Facebook post titled “What I Hate — and Love — about FIRE,” Suze writes: “Financial independence – count me in! “Retire early[…]
“Two Million Dollars is Nothing. It’s Pennies,” says Suze Orman
Want to retire early? You’ll need at least $5 million, more likely $10 million, says famous financial personality Suze Orman. I should know. She said that to me, directly, on my podcast. I asked Suze for her opinion about a frugal, flexible person who wants to retire early with a $2 million portfolio. She warned that retiring would be a massive mistake. “Two million dollars is nothing,” Suze said. “It’s nothing. It’s pennies in today’s world, to tell you the truth.” Wait,[…]
“Why I Hate the FIRE Movement,” says Suze Orman
A few weeks ago, I received an email from Suze Orman’s publicist, asking if I’d be interested in interviewing Suze on my podcast. “Duh,” I replied. Suze is a legend in the world of personal finance. She’s appeared on Oprah multiple times, published 10 mega-bestselling books, and hosted The Suze Orman Show on CNBC from 2002 to 2015. She’s one of the most famous voices in this[…]
How Much is Enough?
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.[…]
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. ____[…]
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[…]
