The Isolation Of Financial Independence

The Dr. Seuss classic, Oh the Places You’ll Go is one of my favorite books to read my young child. It’s an amazing synopsis of what a kid can emotionally expect to experience in the future. In just a few pages it captures the ambition, thrill, excitement, boredom, trepidation and isolation of life.  

So many of the lines are pertinent, even for adults. It’s this one, discussing loneliness, that always stands out to me:

“All Alone!

Whether you like it or not,

Alone will be something

You’ll be quite a lot.”

It’s true. As we become young adults, and move into our careers, it’s this isolation that we try to avoid at all costs. It can often lead us to spend more than we want. It’s often why we go out to the clubs, restaurants or extravagant outings. It’s often why we purchase the nicer car, the bigger home, the better jewelry. 

We want to show people we have value so they will want to remain near us. We want to outrun – or outspend – this loneliness.

As you take your initial steps towards financial independence

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Betting On The Next "Can't Miss" Investing Trend

When you see the next big investing trend skyrocket in value, do you buy in?  

If so, why? 

Do you believe it will allow you to escape your job? Do you see it as a pathway to explore your dreams? Have you convinced yourself this trend is somehow different than all the other bubbles of the past?

Instead of buying in, maybe it’s time to return to your life goals.

Your investing strategy should mimic those goals, providing you with the expected returns that will provide the funds for your future.

If that investment you made into the next big trend plummets…

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The Optimal Financial Performance

The textbook says to stock 15% away each paycheck into a tax-advantaged account, and over 40 years you will have enough saved for retirement.

People save far more than 15%, though, trying to reach retirement in a decade or less.

What’s the optimal choice for you?

The textbook says buy a house that’s under 30% of your income.

Others buy houses that are 20% or less than their income.

What’s the optimal choice for you?

The textbook says that people, on average, spend $3,000…

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Test Your Savings Rate

Entrepreneurs test like crazy. They test the different prices for products they sell. They test different marketing tactics. They test different technologies. They probably test different clothes they wear. They -- seemingly -- test everything.

Why don’t we do the same when saving?

Think you can only save 5% this month? Why not try 10%? What’s the worse that could happen? If you can’t make it without putting your family at harm, then simply tap the funds you planned on not spending.

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