Ideas on Personal Finance
A quote that captures the essence of Financial Independence (FI). It basically frames financial freedom, not as something that can be used to run away from work, but as something that allows you to choose the work you want to do. Some people (like the Finer household) keep working even after reaching FI. But the … Read more
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
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
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
A short but sweet quote that reminds us not to get into debt. Not all debt is bad, though. For example – I have a mortgage (home loan) with less than a 2% fixed interest rate. I am okay with that. It is better to invest the money to make more than 2% rather than … Read more
Small and recurring expenses can be a significant drag on savings. We used to pay many monthly bills without even thinking twice about them – for example, magazines, subscriptions, mobile plans, etc. Over time, we either eliminated or cut back on our monthly expenses. I also severely cut back on small impulse shopping that I … Read more