Welcome to the September 2018 First Friday bonus episode! We recorded this episode at Camp FI, which stands for Camp Financial Independence. It’s a gathering of people who are pursuing financial independence; we spend a few days eating, drinking, and having late-night poolside conversations about money. There are several Camp FI’s throughout the year; I recorded this bonus episode at the Camp FI at Joshua Tree National Park in Southern California in early August. I invited several of the people at Camp FI to come to the microphone and share one thing: “Tell me a story about something you did that scared[…]
Tag: financial freedom
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[…]
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.[…]
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[…]
Why Money Won’t Solve Your Problems
A few years ago, my friend J.D. Roth told me a story that’s stuck in my mind ever since. ⠀ ⠀ During his 20’s and early 30’s, J.D. was broke and in credit card debt. But in his mid-30’s, he started a business, and within three years, he sold it for a significant sum. He became wealthy almost overnight. ⠀ ⠀ That’s where the story begins. ⠀ ⠀ After his fortunes turned, he took a look at the rest of his life and realized it was still brimming with problems. He felt unhappy with his current relationship, weight, overall health, poor eating habits, lack of travel and lack of exercise. ⠀ ⠀ He was financially abundant, but unhappy with the rest[…]
If Money is Not the Motivation, What Is? — an Interview with the Mad Fientist
Brandon always wanted to be wealthy. He just didn’t know why. “I don’t like fancy cars, and big houses just seem inefficient,” he said. “I just wanted to have money to manage.” But in 2011, Brandon discovered the concept of financial independence. “That just blew my mind — it was just like, oh, I can buy my freedom, and my freedom is something that I would love to spend my money on,” he[…]
#100: Life After Financial Freedom, with Brandon – the Mad FIentist
Over a year-and-a-half and two million plus downloads later, the Afford Anything podcast has hit another awesome milestone: the 100th episode! To celebrate, I recorded this one live from Ecuador with my good friend Brandon, otherwise known as the Mad FIentist. (You can watch the video here.) If you’ve been a listener since the early days, you may remember Brandon from episode #7. He was the first guest to appear on the podcast, and I’m thrilled to have him back on for round[…]
Mini-Retirements, Semi-Retirement, Early Retirement — What’s the Most Awesome Lifestyle?
This recent reader email struck a chord: I’m a software engineer trying to plan my plunge [into freedom]. I’m young, so I figured I would grind it out, save a lot, and retire early. But after a health scare, I realize mini-retirements might trump early retirements, and I want to achieve a lifestyle similar to yours. It’s difficult to figure out what I should be prioritizing, however. Side hustles, remote work, rentals, starting a business? Oohhh!! I love this email. On the surface, it’s a tactical “how-to” inquiry: Should I launch a business? Buy a rental property? But under the surface, this reader hints at a deeper question: What’s the optimal lifestyle? Mini-retirements? Early retirement? Something[…]
Gear Up for the One Percent Challenge!
“I’m scrounging dollars to fill my gas tank. I don’t make enough money to save. At the end of the month, there’s nothing left.” If this feels like you, gear up for a radical shift that will change your life. Last month I announced the One Percent Challenge, a quest for Afford Anything Rebels that can turbocharge your financial life. The concept is simple: save one percent more than usual. Regardless of how much you’re currently stashing, boost this number by one extra[…]
The Most Crucial Money Lesson, in Three Words: Mind the Gap
After I graduated from college and accepted an entry-level job, I received a starting salary of $21,000 per year. Adjusted for inflation, that’s $24,100 in today’s dollars. I was a diligent saver, even then. I directed 15 percent of my pre-tax income into my 401k and another 5 percent into a Health Savings Account. I forced myself to live on whatever was leftover. (I freelanced in the evenings, and saved this money for travel.) When I told the “grown-ups” around me that I was investing 20 percent of my income into retirement and health accounts, they complimented me. They told me I’m making excellent progress. They were[…]
