Ideas on Personal Finance
This quote flips the traditional retirement question (At what age should I retire?) on its head. Instead of that, we should ask, ‘At what income can I retire?’. If someone has a frugal lifestyle, then it means their expenses are less. The smaller their expenses, the less money they will need to retire. Hence they … Read more
People typically retire and stop working. However, the advantage of Financial Independence (FI) is that you can retire from a traditional job and still work. The best part is that the work you do will be the work you want to do (and not the work you have to do). Some people choose early retirement … Read more
Of all the ways to achieve Financial Freedom / Early Retirement (Earning, Saving, Investing), Saving is the most important. Pillars of Financial Independence / Early Retirement There are only three ways to achieve Financial Independence (FI): Earning: Earn more money Saving: Spend less money (Save more) Investing: Invest the savings wisely All three pillars are … Read more
Einstein said that compound interest is the most powerful force in the universe. Compounding takes time, but it can provide a big boost to your finances. Compounding: Simple, yet powerful You really don’t know something well until you experience it first hand. I knew how compounding worked in theory. But over the years, I have … Read more
Although this is an ancient proverb, it still rings true. Trying to make a quick buck is enticing and might work sometimes. If someone is a great investor and can consistently pick winning stocks, that is great. However, for most investors – building wealth takes persistence and a lot of patience. I have been investing … Read more
What is Financial Independence (FI), and why should I care? I had this question when I first heard about FI. Below is my take on the benefits of Financial Independence. The first three sections provide an overview of Financial Independence (FI). To skip to the FI benefits, go to the section: ‘Benefits of Financial Independence’. … Read more
Many people are talented at managing money and are trying to hit the traditional target of earning money and retiring in their 60s. There is nothing wrong with that. But people on the FI journey are aiming for a target that others do not see. The FI people look at retirement differently – not something … Read more
It is important to start somewhere. I started my Financial Independence (FI) journey a good ten years after starting my professional life. I wish I had started saving and investing properly right when I started my first job. I would have reached FI a lot sooner that way! But, I am happy I at least … Read more
This is one of my favorite quotes on Planning (the other being – ‘In preparing for battle, I have found that plans are useless, but planning indispensable.’ by Eisenhower). Long before I had a plan for Financial Independence (FI) / Early Retirement, I had a wish to retire early. I spend many years doing nothing … Read more
Compounding worked wonders for my Financial Independence (FI) journey. However, the key attribute to make compounding work is patience. And in this world of instant gratification, it is difficult to have patience. When I started my FI journey, the initial investments were relatively small. Watching them grow was like watching paint dry. At that time, … Read more