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Your Money or Your Life | Achieve Financial Independence …

Your Money or Your Life | Achieve Financial Independence | Your Money or Your Life

Your Money or Your Life and everything you find here is rooted in transforming your relationship with money, not just changing your money habits. The goal is to find and have enough (and then some) rather than always seeking more. This work requires rigor, honesty and a radical willingness to change. It equally requires curiosity and compassion, offering no shame no blame as a mantra for the journey.

Money as a tool is both materialandspiritual to get what we need and to reflect on the meaning and purpose of our lives. We see our lives as both our own to live responsibly and as a gift and in service to our wider circles of community.

The New York Times Bestsellercompletely revised and updated for the 21st century.

The philosophy behind Your Money or Your Life started back in the 1970s.

Join the financial independentmovement. Get strategies, inspiration, resources, support, and community.

A long-con ponzi scheme: How money rules the world

Would you rather have freedom or stuff?

Vicki and Joe on Oprah

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Your Money or Your Life | Achieve Financial Independence …

Financial Independence, Early Retirement and FIRE – Miss …

There are a few buzzwords or rather, acronyms youll hear in the financial blogosphere FI, RE, and FIRE. What do they mean and why do folks keep talking about them?

FI =Financial Independence

FI is pretty much everyones goal (I would think!). FI means that you donthave to work for money. Traditionally, FI was equivalent to retirement. Retirement meaning you stopped working all together usually around the age of 65 or so. Think days at the golf course, river cruises in Europe, and a drink with a little umbrella in hand. Now, the definition of retirement is evolving and FI seems more fitting now since it includes the traditional definition and more.

Youve arrived.

RE = Retire Early

RE is pretty self-explanatory. Whatcounts as RE depends. In the non-physician world the famous RE folks are in their early 30s:

Early 30s would be exceedingly difficult for a traditional physician who begins attending life at age 30. I guess youd have to be a Dr. Doogie Howser to do that. Physician on Fire is almost there as he recently announced thathe is going part-timeat the age of 41. I think a physician who can retire at age 45-50 is considered RE.

FIRE =Financial Independence,Retire Early

FIRE is a special club. Youve officially arrived if youre a member. Not only can younot work for money if you dont want to but youve attained this at an age much earlier than anyone else. This is a popular goal to strive for.

FF = Financial Freedom

Isnt FF and FI the same thing? Maybe. If youre a splitter (vs. a lumper) then FF is one step beyond FI. Its FI + generous wiggle room. Its a bit naive to think you know and can predict your expenses 20 or even 30 years into the future. Things may go as planned, but often, they do not. Your wants will most certainly change. Health care costs are nebulous and completely unpredictable. A health crisis can easily eat up several 100s of thousands of dollars for things like home health care or a long-term care facility. A family member may need help and maybe youd like to be in a position to help them andnotderail your goals either.

Stay tuned for the second part of this post how to determine your FI or FF number and more!

Whats your FI number? Are you FI, RE, FF, or FIRE? Comment below!

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Financial Independence, Early Retirement and FIRE – Miss …

theFIREstarter – Financial Independence. Retire Early

Greetings!

Welcome to theFIREstarter! If you are interested in themes such as Financial Independence, Retiring Early, Downshifting, or simply just working less and living more then please stick around, I think well get on just fine

If all of that sounds right up your alley then you can follow along by:

Subscribing by EmailFollowing me on twitterSubscribing by RSS feed

If you’d rather have a poke around first then by all means do so! You can always subscribe later by using the link at the top right of the menu above.If you want to get the full story you can start from the very first post here or for a more casual read, just see what catches your eye on the list of all posts page.

My thoughts and plans have slightly changed in the few years since I set up the blog, you can learn a little bit more about me and the main points on what those plans were and how they’ve changed here, here, here, here and finally here.

If you’d like to keep a track of new developments, money saving tips, money making tips, my adventures in attempting self sufficiency and simple living, free financial hacks and spreadsheets, and my general musings on Financial Independence, Personal Finance, investing, and the occasional humorous rant, then please consider following along. Those links again:

Subscribe by EmailFollow me on twitterSubscribe by RSS feed

Thanks for visiting!

TFS.x

Its been around a month since I started trying out Huel, a liquid food that could in theory provide you with all the nutrients and energy you need, without eatinganything else at all. Before a more in depth look at my thoughts and tips on eating Huel, here is a quick TL;DR FAQ stylee:

If you would like to give Huel a try please consider using this link here which gives you 10 off of your first order (and me 10 off my next order! Thank you if you do!)

Now onto some more long form thoughts and a few tips from my experiences with trying out Huel for a month.

Read the rest of this entry

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theFIREstarter – Financial Independence. Retire Early

theFIREstarter – Financial Independence. Retire Early

Greetings!

Welcome to theFIREstarter! If you are interested in themes such as Financial Independence, Retiring Early, Downshifting, or simply just working less and living more then please stick around, I think well get on just fine

If all of that sounds right up your alley then you can follow along by:

Subscribing by EmailFollowing me on twitterSubscribing by RSS feed

If you’d rather have a poke around first then by all means do so! You can always subscribe later by using the link at the top right of the menu above.If you want to get the full story you can start from the very first post here or for a more casual read, just see what catches your eye on the list of all posts page.

My thoughts and plans have slightly changed in the few years since I set up the blog, you can learn a little bit more about me and the main points on what those plans were and how they’ve changed here, here, here, here and finally here.

If you’d like to keep a track of new developments, money saving tips, money making tips, my adventures in attempting self sufficiency and simple living, free financial hacks and spreadsheets, and my general musings on Financial Independence, Personal Finance, investing, and the occasional humorous rant, then please consider following along. Those links again:

Subscribe by EmailFollow me on twitterSubscribe by RSS feed

Thanks for visiting!

TFS.x

One Million Pounds.!

So this is the first part of a hopefully ongoing series of posts organised by new UK FI Blog kid on the block The Saving Ninja, where he will pose a question or thought experiment and many bloggers will chip in with their answers. Ill let him describe this in his own words:

This article signifies the start of a new post category which Im going to name, Thought Experiments!

The way this type of post will work is by starting off with a question, like What would you do if you got given 1 million?, and the blogger will have to write whatever they first think of. No pre-planning or major editing allowed and blabbering is definitely encouraged! It should read like an internal monologue.

Right at the top of the post, Ill post a link to all of the other bloggers that have participated in the thought experiment (I encourage other bloggers to do likewise!) Youll then be able to see a vast array of different opinions to the same question.

Ill also be taking question requests in the comments below!

So, without further adoThought experiment number 1!

What would you do if right at this very instant you got given 1 million great British pounds? This could be from a lottery win, an IPO, a scratch card, you name it. No tax needs to be paid, its just been plopped directly into your run of the mill bank account.

Before we get to my answer, here is a list of links to other bloggers whove participated so far:

The Savings Ninja

Quietly Saving

Ms ZiYou

My first reaction would be just to stick it in an index tracker like VWRL, start withdrawing 4%/year and call FI. Then obviously hand in my notice at work the very next day! However that would make for a rather short and boring answer so let me think a bit deeper on that one.

Other topics which are immediately spring to mind are:

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theFIREstarter – Financial Independence. Retire Early

financial independence / early retirement – reddit

I work as a financial advisor for a large company. I am also a big proponent of the FIRE lifestyle–if it weren’t for my health issues it would be a goal of mine (and something I was actively working towards before they came up).

There has been a trend, probably since the movement has been around, to throw blanket advice out there. This advice usually comes from two ‘insights’–that low cost is the best and that the market will always go up.

And while those are true, there are major stipulations that should be applied. First of all–the obsession with 100% in low cost equity funds. I’ve seen this touted to people who are asking what their recently widowed mother should be in. To people who are retiring in 5 years. To people without any savings.

Even if you are 20 years old–NOBODY really knows how appropriate this portfolio is for you without knowing your full situation. Having a portfolio that is 100% equity is dangerous with a small time horizon, no matter how low the costs are–simply because you are at that point completely dependent on the market to either stay the same or go up for you to be able to spend that money that you put into it. And while over 15-20 years that is historically true, it is not the same for a 5 year window.

Now on to the costs–very few people here have been through an actual recession. A lot of people have been investing since the very bottom of the last recession, and have only seen slight volatility. Nobody actually knows what their risk tolerance is.

I say this because people immediately throw out managed money. There are companies who have very sound investment philosophies–I’m not talking about the EJ where you have Joe Schmo giving you his best ‘stock picks’–but there are companies that are all about asset allocation and are managed by teams of very well educated people. And the biggest benefit is NOT that they are going to make people money. But that they are going to NUMBER ONE assess what someones risk tolerance is, and make sure to not put them in a position where they will jump off a cliff when the next recession hits. And number two, be a source of reason and discipline to the investor who does freak out when he thought his tolerance was very high, but is now convinced that we are seeing a “black swan event” and willing to take it all out.

I used to refuse to put people into managed accounts–but after seeing the absolute insanity that a little bit of volatility can manifest, I have absolutely no qualms getting people in. The reason managed accounts have a better return on average than a DIY investor isn’t because of return–but because it is forcing that person to stay disciplined.

People forget that the BIGGEST component to investing is emotional. If you have to pay someone a % to make sure you stay in the market, do it. Unfortunately, we might not know that until the next recession.

Every time there is a drop like there was today, I have to talk people off of the ledge. For those who are DIY and 100% in equity, its usually the first time we ever even discuss risk tolerance and the emotional component of investing.

Not only that, but I have so many young investors who are so afraid of costs that they are determined to do everything on their own–yet they ask questions like “what is the difference between an index fund and a mutual fund”–that is probably the #1 question of people under 25. People expect me to explain the way investing works within 30 minutes so they can build their own portfolio as cheap as possible. I wouldn’t ever even put a 20 year old in a managed account–but even the mention of target date funds has them bringing out a silver cross. I can’t with good conscience tell someone who doesn’t know what a mutual fund is to go 100% S&P 500 index when I know they will lose their minds with the next correction.

Am I against a 20 year old going 100% into S&P? If I feel they are truly aware of the volatility and will have a stomach for it, and do not need access to the funds for 10 years–not at all (although I’d suggest some diversity). But I think the percentage of those kinds of people are very low–even within this community.

There are people that are just ANXIOUS. You can understand everything fine, but you can still have a personality type that just WONT WORK with these kind of strategies. And instead of lumping everyone under the same solution, why not talk about what is needed for the individual.

I’m really interested in what this generation is going to learn with the next recession. I think it’s very much needed to help shatter some of the ego that seems to have taken over the average investor today.

Edit: I should say Im with a large discount broker. I understand Merrill and Ed Jones are filled with bad apples. The problem with those companies is they let your advisor, someone who doesnt need a degree even, to choose and manage your portfolio. Discount brokers have their adviser be the doctor. The prescribe a managed account but they are not managing it. Instead, a team of essentially fund managers have hundreds of model portfolios that they manage. Your financial situation and risk tolerance determines the model portfolio. I am a big proponent of this model. Doctors dont make the meds they sell, management and advising are two different skill sets.

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financial independence / early retirement – reddit

8 Paths to Financial Independence – PassionSaving.com

Financial Independence Path #1 The Slow-and-Steady Conventional Path

All money advice is ultimately advice aimed at helping you attain financial independence. So even the most popular writers, people like Suze Orman and David Bach, are in a strict sense part of the Retire Early Movement. As a general rule, however, the conventional advice does not work. If it did, a high percentage of the population would be attaining financial freedom early in life. Thats obviously not the case.

This doesnt mean that there is not good advice put forward in the books of people like Orman and Bach. There is. But those seeking early financial independence need to do better than most of those who rely on the conventional guidance. Those who put their faith in the most popular money gurus may be able to retire at age 65 or perhaps a bit earlier. Its not realistic to expect to do too much better than that by following The Slow-and-Steady Conventional Path.

Our movement does not reject the conventional advice. It rejects the idea that it is sufficient. We aim higher. We seek to do better. We view the conventional advice as a base of knowledge to which we add more exciting ideas for the purpose of achieving financial independence a good bit sooner.

I included The Mind-Over-Matter Motivational Path in this listing to provide me a place to discuss inspirational speakers like Tony Robbins. I am not familiar with most of Tony Robbins work (if you feel that I have misrepresented him, please let me know). I wanted to include this path because of the attention that has been directed to The Secret, a book with which I am also unfamiliar that urges an inspirational approach for people hoping to achieve ambitious life goals.

I obviously am not overly excited by inspirational speakers or I would spend more time learning about their work. I am not dismissive either, however.

My belief is that inspirational speakers are onto something important. The hardest part of attaining financial independence is saving money. The hardest part of saving money is working up the motivation to do so. The primary reason why the practical steps that are the focus of most guides urging The Slow-and-Steady Conventional Path dont usually lead to early financial independence is that readers of these guides do not become sufficiently excited over their content to change their money behavior in significant ways. Knowing all the practical stuff in the world wont help you if you are not highly motivated to act on it.

So I see the material generated by those urging The Mind-Over-Matter Motivational Path as having value, perhaps equal or even greater value than the material generated by those urging the Slow-and-Steady Conventional Path. This path does not excite me too much either, however.

What works is to marry the motivational with the practical. Practical stuff standing alone is boring. Motivational stuff standing alone is ineffective. Working together, these two approaches acquire far more life-transformational power than either possesses on its own. I see it as the first goal of the financial independence quest to determine how best to mix the motivational and the practical and thereby to discover what actually works for real live people in the real world.

I view Robert Kiyosaki, author of Rich Dad, Poor Dad, as someone who has tried to mix the practical and the inspirational and who has created an explosion of interest in financial independence as a consequence. It amazes me how many people love Kiyosaki; it sometimes seems that his works are going to take over the entire money section of the bookstores. It also amazes me how many people hate Kiyosaki; I have been on discussion boards where the mention of his name has brought on foaming-at-the-mouth reactions on the part of large percentages of the board communities.

The Kiyosaki phenomenon tells us that something important is up. Thats my take.

The people who have achieved some success in their money lives tend to be people who have followed the rules better than most others and who take pride in having done so. Kiyosaki is disdainful of the rules. Many of those who have achieved a good measure of financial success view Kiyosakis message as a threat.

I think that Kiyosaki is onto something in questioning the conventional rules. The rules that used to work are not likely to work as well in the future. Those who resist acknowledging that find Kiyosaki hard to take. On the other hand, those who agree that following the old rules will no longer work tend to be too willing to believe that Kiyosaki has the right answers, in my assessment.

I see the Kiyosaki path as The Hustling Mavericks Path. Being a maverick makes sense. Hustling makes sense. I am personally not persuaded that Kiyosaki has developed the best possible vision of how to attain financial independence early in life, however.

Amy Dacyczyn (she is the author of The Complete Tightwad Gazette) is my favorite money writer. Shes different from most others in many ways. One of the most striking ways in which she is different is that her work focuses on the needs of people who do not make big incomes. Her path is The Struggling Middle-Class Workers Path. Amy Dacyczyn focuses on the hard case rather than the easy case.

By doing so, she shows that amazing things can be done, things that no one before her attempted to do. Its her focus that makes the difference, I believe.

Most money writers start out accepting that it is hard to get by even on an income that is large by relative standards (most money guides are aimed at high-income people and those earning high incomes today are earning far more than just about anybody ever earned in earlier days). If Dacyczyn started with that assumption, she would never have been able to have done the work she has done. All of her work is rooted in the assumption that it is possible to get by and to get by well with remarkably small amounts of money. She makes the case in impressive article after impressive article after impressive article after impressive article. By looking at the money problem from a different angle, Dacyczyn was able to come up with solutions than no one who came before her even bothered to consider.

Dacyczyn doesnt focus on financial independence (she does make brief reference to it from time to time) because that is not the first concern of her readership. All the same, she tells us all more about what it takes to achieve financial independence than any other money writer. If her advice helps those with modest incomes get on their feet, what does it do for those with incomes a bit above the modest level? It tells them that for them financial independence is an available option amazingly early in life.

Dacyczyns writing is often dismissed by mainstream writers as extreme. Thats a dumb criticism. Dacyczyn obviously never compels anyone to adopt any suggestion she puts forward. What she does is to show us the options available to us. All middle-class workers are able to retire early if they elect to do things that some view as extreme. Some can achieve financial independence very early in life indeed. The negative reaction to Dacyczyns work results from the unease that some feel in knowing that these options are available to them.

It is wrong to find fault with a writer for showing us that we possess options that we did not know were available to us. Dacyczyns advice is generally practical in nature. Read between the lines, though, and you pick up a powerfully motivational message: Follow Dacyczns lead and you can be free of paycheck dependence a lot sooner than you once thought was possible. No one has married the practical and the motivational as well as Dacyczyn, in my view. She is the best financial freedom writer around.

Joe Dominguez (co-author of Your Money or Your Life) is in second place. Dominguez offers a nine-step plan for achieving financial independence early in life that has been successfully followed by millions. And his approach works primarily because it so motivates his followers that they come to center their lives on their desire to follow it closely and obtain its rewards as quickly as possible.

The problem with the Dominguez approach is that most of us are not as idealist as the typical Dominguez zealot (I dont intend that to be taken as a put-down). Dominguez sought to obtain financial independence by his early 40s so that he could devote his remaining years to pursuing the environmentalist causes that are his passion. His approach works. He was able to leave paid employment in his early 40s. Lots of others have been able to do so by following his guidance. But how many of us are willing to change our lives around so that we can pursue nonprofit causes? Some are. Most are not.

I believe that the success of the Dominguez book is well-deserved. He understands money and how it works in peoples lives better than any of the better known names in the field, in my estimation. But I believe that the Dominguez approach can achieve its full potential only if his program is expanded to provide guidance for the millions who have different sorts of life goals than the life goals pursued by Dominguez and his followers.

Dominguezs ideas work not just for those who want to pursue nonprofit causes. They work for those who want to be increasingly free of economic insecurity as they age. They work for those who want to be able to retire early. They work for those who want to start their own businesses. They work for those who want to make career shifts in which they pursue work that pays less but provides a greater sense of fulfillment. The Intelligent Idealists Path is a path of great potential that as of today is not fully realized.

John Greaney (owner of the RetireEarlyHomePage.com site) is the nemesis of the Retire Early movement. He has led a Campaign of Terror against our discussion boards for over five years (this article was posted in July 2007), burning several entirely to the ground and intimidating the owners of several others into compromising the integrity of their sites in very serious ways. He is likely the most abusive poster in the history of the internet (measured by the destruction he has done to the work of thousands of good people) and his presence should not be tolerated by anyone with even a minimal desire to help people learn what it takes to win financial independence early in life, in my view.

All that said, I believe that Greaney represents something real and important and that his path to financial independence I think of it as The Disgruntled Cubicle-Dwellers Path should be included in our list of the available options. Greaneys message is a message of anger and contempt and hate. A not insignificant number of todays workers respond to that message. You dont have to like it; I certainly do not. You do need to come to terms with the reality, if you hope to develop a complete understanding of where our movement is headed in days to come.

With Greaney supporters, it is always the other guy who is to blame. It is their employers who cause all of their discontent in the workplace, never their own choices. The answer to lifes problems is to avoid or ignore responsibilities, never to learn lessons from ones experience of the troubles that all of us walking the Valley the Tears are required to endure from time to time. The purpose of financial independence is to escape the outside world, not to make efforts to reshape it in some positive way. There is a market for this vision of financial independence among the cubicle dwellers of today. Most of us obviously do not relate to this vision. But some of us do.

I have sympathy for some of the complaints about the workplace raised by the Greaney supporters. Ive been in staff meetings that went on too long. Ive suffered the frustration of working for one or two bosses who were clueless about some aspect of the work they were overseeing. I see this path of negativity as a dead-end, however. It makes some people feel good to think that they have discovered a means to stick it to their employer. But this path leads only downward, and never upward. My advice is to be aware of this path and to take what good you can learn from those traveling it (Greaney supporters have things of value to teach us) but not to get too caught up yourself in the negativity that is the driver of this vision.

Paul Terhorsts book Cashing in on the American Dream is a brilliant work written ahead of its time. The problem with it is that it is written for the high-income professional without children who is willing to trade the expensive cars and the expensive houses and the expensive vacations and the expensive country clubs for a life of freedom from the need to work. Terhorst points us to a means of attaining financial independence early in life. The Non-Consumerist DINKs Path really will take some people to the place where they want to go. This approach works.

The problem, of course, is that the Terhorst path is so limited in application. Most of us are not DINKs (a DINK is a married couple with a double income and no kids). And many DINKs enjoy their jobs so much that they see no great appeal in leaving them behind. So this is not a vision that is going to take the world by storm anytime real soon.

Its worth studying the approach, however. What can be done by DINKs in very little time can be done by the rest of us in a good bit more time. Most of us can obtain some version of the financial independence enjoyed by Terhorst. The principles and strategies explored in his book have general application, even if the precise details of the particular program examined do not.

This is the Rob Bennett approach. I have tried in my book Passion Saving: The Path to Plentiful Free Time and Soul-Satisfying Work to put forward a vision that takes advantage of the insights of the other available financial independence visions while avoiding the pitfalls that have limited the success of some of them.

I acknowledge the workplace problems that fill the disgruntled cubicle dwellers with such anger and have tried to put forward a more positive approach for dealing with these problems. I appeal to peoples idealism in urging them to use their desire to do wonderful things with their lives to motivate better financial decisions without going so far as to suggest that we all need to retire from the corporate workplace to sign up with nonprofit organizations. I encourage the exploration of frugal ways of living without showing disdain for the consumerist choices that I believe have added a great deal to many middle-class lives in recent decades. I take a maverick position on many topics as a result of my belief that the old rules no longer work while showing what I hope is the proper measure of respect for the good that has been achieved in earlier times by the conventional money advice.

You do not possess financial independence today. You know that you want to come to possess it at some time in the future. Learn more about the eight paths to financial independence outlined above and you will learn that you can in all likelihood get from where you are today to the place where you know you someday want to be much sooner than you now realize is possible. Talk to people in our community and they will tell you that its an amazing journey, one that will change not only your money choices but your choices about just about everything you do with your life energy from the time you wake up in the morning until the time you drift off to sleep at night.

Money decisions are life decisions. Attain financial freedom and you gain the ability to do with your life what you always wanted to be able to do with it. Its not just about saving your money. Its also about saving your life.

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8 Paths to Financial Independence – PassionSaving.com

3 Ways to Achieve Financial Independence – wikiHow

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Three Methods:Living Within Your MeansMaximizing Your IncomeDeveloping Wise Savings StrategiesCommunity Q&A

However you interpret the concept, financial independence requires a lifetime of responsible, well-informed financial decision-making. For some, the term might indicate the moment you will no longer rely on your parents to cover all of your expenses. If this is a goal of yours, check out How to Start Saving to Become Independent. Later in life, the mention of financial independence may conjure the aspiration to cover living expenses without working, as many people hope to do during retirement. Whatever your personal goal, there are sound financial strategies you can implement at any age that will readily help to increase your financial independence.

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Set specific goals and stick with the plan. Understand that achieving financial independence is a long-term process. Speed bumps on the road to financial independence are inevitable. Overcome temporary setbacks by sticking to a responsible financial plan. If you focus on each financial goal you set for yourself, always look for options to increase your income and reduce your expenses, and save strategically, youll steadily improve your financial stability.

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Question

Is the 401(k) in Canada, or just the USA?

The 401(k) exists only in the U.S. Canada has a similar plan, the Registered Retirement Savings Plan.

Ask a Question

Thanks to all authors for creating a page that has been read 36,526 times.

YesNo

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3 Ways to Achieve Financial Independence – wikiHow

Welcome – Reach Financial Independence

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Your Money or Your Life | Achieve Financial Independence …

Your Money or Your Life | Achieve Financial Independence | Your Money or Your Life

Your Money or Your Life and everything you find here is rooted in transforming your relationship with money, not just changing your money habits. The goal is to find and have enough (and then some) rather than always seeking more. This work requires rigor, honesty and a radical willingness to change. It equally requires curiosity and compassion, offering no shame no blame as a mantra for the journey.

Money as a tool is both materialandspiritual to get what we need and to reflect on the meaning and purpose of our lives. We see our lives as both our own to live responsibly and as a gift and in service to our wider circles of community.

The New York Times Bestsellercompletely revised and updated for the 21st century.

The philosophy behind Your Money or Your Life started back in the 1970s.

Join the financial independentmovement. Get strategies, inspiration, resources, support, and community.

A long-con ponzi scheme: How money rules the world

Would you rather have freedom or stuff?

Vicki and Joe on Oprah

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Your Money or Your Life | Achieve Financial Independence …

Financial Independence & Early Retirement … – MoneyMow

Fill out the details below to find out when you can achieve early retirement and financial independence

As you can see from the early retirement calculator, the most important metric to measure is your savings rate. The higher the savings rate, the faster you can retire early.

The early retirement calculator shows you when you can retire (and therefore at what age you can retire), but it does not show you how to retire early or increase your savings rate. You can follow my journey towards financial independence and early retirement to see an example. You can also browse through my blog to get concrete tips on how to retire early, achieve financial independence and increase your savings rate.

The most important assumption in the calculator is related to the safe withdrawal rate that is based on the Trinity study of safe withdrawal rates. I am confident that 4% is a safe withdrawal rate. Others will say 5% is fine, whereas some argue that 3% is more safe. You should make up your own mind and change the assumptions accordingly to get your retirement age.

Finally, another key assumption in the calculator is the 5% annual return on investment after taxes and inflation. I believe this number is fair, but you can never know what the returns will be in the future. Fluctuations in returns might impact at what age you can retire and achieve financial independence.

Feel free to reach out if you have any questions related to the calculator or financial independence/early retirement in general.

Onwards,Carl

NB: This calculator is for informational purposes only, and you should always seek professional help before making any investment, life or other decisions. Please read my disclaimer and terms & conditions.

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Financial Independence & Early Retirement … – MoneyMow

Frugalwoods – Financial independence and simple living

June 2018 Yeah, yeah, its August and Im just now getting around to writing about June on the homestead if youre wondering why, read this. Its rare that I say these words, but, we were feeling hot, hot, hot in June. We are not hot weather people (I repeat NOT), as evidenced by our move to a snowy state. Summers here are usually temperate and quite manageable with opened windows and doors (screened, of course)….

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Frugalwoods – Financial independence and simple living

Top 6 Financial Independence (FI) Blogs You Should Read …

Financial independence refers to the state of reaching a point of sufficient wealth where one is not required to work full time unless they want to in order to maintain a desired lifestyle. It occurs when people have enough built-up income to pay for necessities, for the remainder of their lives, without an active-income, work-related paycheck. Financial independence can be achieved through saving, investing, and other passive income sources, but it usually means that individuals can pursue the things that they are truly passionate about, such as hobbies, travel, and so much more.

If financial independence, early retirement, or creating an investment portfolio are on your radar, be sure to check out these financial independence (FI) blogs and bloggers. Their experiences, advice, and discussions may be just what you need to kick-start your path towards financial independence.

Also known as Mr. and Mrs. 1500, the 1500 Days to Freedom blog chronicles the journey of one blogger (and his wife) whose goal is to retire in 1500 days at the age of 43 thereby [thinking] differently and [escaping] the rat race. Blogs range from a variety of financial independence topics, all of which aim to encourage and inspire others to abandon their consumer, spendaholic ways in favor of a more fulfilling existence and learn how to invest and save money via cutting expenses and smart, simple investing. Learn more about Mr. 1500, see if he is accomplishing his goal by February 2017, check out their blogs, and read more about the resources that helped them grow their money.

The Bogleheads are a collection of people, inspired to follow the investing advice of Jack Bogle (author, blogger, and financial guru), who follow a small number of simple investment principles that have been shown over time to produce risk-adjusted returns far greater than those achieved by the average investor. On the site, visitors will find thousands of forums that emphasize regular saving, broad diversification, and sticking to ones investment plan regardless of market conditions. Using the forum site can look a little overwhelming, but there is a great starter guide that will help you get organized and prepared to begin the Bogleheads investment philosophy. Typical forum topics include: investing (help, theory, news, general), personal finance, personal consumer issues, and more.

Jim L. Collins financial independence blog, titled jlcollinsnh, focuses on a simple path to wealth. Best known for his Stock Series on investing at times called the best thing you [could] read about how to invest money by Mr. 1500 the blog also discusses anything and everything from money, life, travel, and business. The author began the blog as a way to teach his daughter what did and did not work financially for him. As far as what you should do with the information, the author states: If you read my blog youll soon have a very clear idea of my views. You can then read other sources, compare and decide for yourself what resonates.

Mr. Money Mustache (MMM) is a financial freedom blog, started by a 30-something retiree, who wants to share his frugal, yet fun, life of leisure and all that comes with it. Along with blogs, there is anMMM forum dedicated to providing The Money Mustache Community with resources, discussions, and advice on all things financial, investing, and more. However, if you would like to stick with the blog itself, Mr. Money Mustache recommends starting with his blog Getting Rich: From Zero to Hero in One Blog Post, and working your way to the classics. If you would like to dive into the community forum, try starting with these steps, followed by the Best of Mr. Money Mustache discussions.

The Mad Fientist is not mad. He is a scientist of financial independenceor fienceor FI, if you will, which is short for financial independence. He wants to teach you, and every reader, that early financial independence is possible and achievable earlier than you might imagine. By analyzing the tax code and looking at personal finance through the lens of early financial independence, [The Mad Fientist] develop[s] strategies and tactics to help you retire even earlier rather than at 60+ years old. Along with well-researched blogs, he offers podcasts that feature some of the heaviest hitters in the financial independence sphere, as well as a free financial independence tracker. Not sure if it sounds legit? Check out this review from Mr. 1500.

The White Coat Investor is a blog started by a practicing, full-time, board-certified emergency physician who received a lot of bad advice and wanted to share what he learned along the way. It covers financial and investing topics and strategies that are specifically targeted at physicians and other high-earners, but the blog and forum are great resources for anyone who wants to find sound financial, investing, tax, and retirement advice. There is a lot of great content to sort through, so the author recommends starting here, which includes their top beginner blogs. Want even more from the White Coat Investor? Order the book it summarizes the blog and contains material not found on the blog.

Hopefully, these blogs have proven to be a great start on your progress towards financial independence! Other financial blogs are available, but you may find that the six blogs mentioned provide some of the more meaningful advice on this topic. If you find something interesting and useful, be sure to share it with your family and friends, because education (ideally early education) is key to these strategies.

Also, keep in mind that all of these blogs and forums are meant to help educate oneself on financial independence, investing, and early retirement. The authors want to offer basic knowledge, but they state that it is up to you (and your circumstances) to decide what will be best and most beneficial for you. They do not guarantee performance or returns but they do promise it will make you think!

Education Loan Finance is not paid to mention any of these blogs, books, or forums. We also do not promise or guarantee performance or returns based on their advice; we are simply informing you of helpful information sources available for your own research purposes.

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Top 6 Financial Independence (FI) Blogs You Should Read …

Early Retirement & Financial Independence Community

amt, bj1111, Boho, bssterl, CalmSeasQuest, Cessna152, chris2008, Eastbayboy, EasyLiving, fiyesno, fosterscik, gamboolman, Go-NoGo, Gonzo304, Jollyquick, Just_Steve, kevdude, maloney50, melorohrer, Nemo2, Osprey, Pajaro, peppermint, Peter, RobbieB, samclem, Sarpy, Scuba, skipro33, swakyaby, Tdafire, thatguy, tony554, travelover, W2R, ZumaMost users ever online was 2,109, 09-25-2018 at 04:23 PM.

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Early Retirement & Financial Independence Community

financial independence / early retirement – reddit

This is a place for people who are or want to become Financially Independent (FI), which means not having to work for money.

Before proceeding further, please read the Rules & FAQ.

Financial Independence is closely related to the concept of Early Retirement/Retiring Early (RE) – quitting your job/career and pursuing other activities with your time. This subreddit deals primarily with Financial Independence, but additionally with some concepts around “RE”.

At its core, FI/RE is about maximizing your savings rate (through less spending and/or higher income) to achieve FI and have the freedom to RE as fast as possible. The purpose of this subreddit is to discuss FI/RE strategies, techniques, and lifestyles no matter if you’re retired or not, or how old you are.

FI/RE is about:

Discovering and achieving life goals: What would I do with my life if I didn’t have to work for money?”

Simplifying and redesigning your lifestyle to reduce spending. Your wants and needs aren’t written in stone, and less spending is powerful at any income level.

Working to increase your income and income streams with projects, side-gigs, and additional effort

Striving to save a large percentage (generally more than 50%) of your income to accelerate achieving FI

Investing to make your money work for you, and learning to manage/optimize those investments for the unique nature of FI/RE

Retiring Early

FI/RE is NOT about:

Gaining wealth for the purpose of excessive consumption

Taking the slow road, or the traditional road to retirement

Becoming financially independent requires hard work and a healthy attitude towards money, but also a degree of privilege. When participating on this subreddit, please be mindful of the ways in which you are lucky.

Please read the FAQ and Rules above, then feel free to share your journey or ask for advice!

A FI/RE classic. Must-read! “Build the life you want, then save for it.”

AMAs with William Bengen, Mr. Money Mustache, Wade Pfau, etc. have been archived here.

Blogs sorted by Alexa rank (500k min)

Forums

More to read

Tools

Books / Resources

Reddit resources

Closely related subs

Regional FI/RE

Regional Personal Finance

Money subs

Lifestyle (frugal) subs

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financial independence / early retirement – reddit

Financial independence – Wikipedia

For the concept of independence from another person for support, see Dependant.

Financial independence is a state in which an individual or household has sufficient wealth to live on without having to depend on income from some form of employment.[1][citation needed] Financially independent people have assets that generate income (cash flow) that is at least equal to their expenses. Income you earn without having to work a job is commonly referred to as “passive income”.[2] For example, if someone receives $5000 in dividends from stocks they own, but their expenses total $4000, they can live on their dividend income because it pays for all their expenses to live (with some left over). Under these circumstances, a person is financially independent. A person’s assets and liabilities are an important factor in determining if they have achieved financial independence. An asset is anything of value that can be readily turned into cash (liquidated) if a person has to pay debt, whereas a liability is a responsibility to provide compensation. (Homes and automobiles with no liens or mortgages are common assets.)

Age and existing wealth or current salary don’t matter – if someone can generate enough income to meet their needs from sources other than their primary occupation, they have achieved financial independence. If a 25-year-old has $100 in expenses per month, and assets that generate $101 or more per month, they have achieved financial independence, and they are now free to spend their time doing the thing they enjoy without needing to work a regular job to pay their bills. If, on the other hand, a 50-year-old earns $1,000,000 a month but has expenses that equal more than that per month, they are not financially independent because they still have to earn the difference each month just to make all their payments. However, the effects of inflation must be considered. If a person needs $100/month for living expenses today, they will need $105/month next year and $110.25/month the following year to support the same lifestyle, assuming a 5% annual inflation rate. Therefore, if the person in the above example obtains their passive income from a perpetuity, there will be a time when they lose their financial independence because of inflation.

There are many strategies to achieve financial independence, each with their own benefits and drawbacks. To achieve financial independence, it will be helpful if you have a financial plan and budget, so you know what money is coming in and going out, have a clear view of your current incomes and expenses, and can identify and choose appropriate strategies to move towards your financial goals. A financial plan addresses every aspect of your finances.[3]

Since there are two sides to the assets and expenses equation, there are two main directions one can focus their energy: accumulating assets or reducing their expenses.

Accumulating assets can focus one or both of these approaches:

Another approach to financial independence is to reduce regular expenses while accumulating assets, to reduce the amount of assets required for financial independence. This can be done by focusing on simple living, or other strategies to reduce expenses.[4][5]

The following is a non-exhaustive list of sources of passive income which potentially yields financial independence.

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Financial independence – Wikipedia

Your Money or Your Life | Achieve Financial Independence …

Your Money or Your Life | Achieve Financial Independence | Your Money or Your Life

Your Money or Your Life and everything you find here is rooted in transforming your relationship with money, not just changing your money habits. The goal is to find and have enough (and then some) rather than always seeking more. This work requires rigor, honesty and a radical willingness to change. It equally requires curiosity and compassion, offering no shame no blame as a mantra for the journey.

Money as a tool is both materialandspiritual to get what we need and to reflect on the meaning and purpose of our lives. We see our lives as both our own to live responsibly and as a gift and in service to our wider circles of community.

The New York Times Bestsellercompletely revised and updated for the 21st century.

The philosophy behind Your Money or Your Life started back in the 1970s.

Join the financial independentmovement. Get strategies, inspiration, resources, support, and community.

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Your Money or Your Life | Achieve Financial Independence …

3 Ways to Achieve Financial Independence – wikiHow

Edit Article

Three Methods:Living Within Your MeansMaximizing Your IncomeDeveloping Wise Savings StrategiesCommunity Q&A

However you interpret the concept, financial independence requires a lifetime of responsible, well-informed financial decision-making. For some, the term might indicate the moment you will no longer rely on your parents to cover all of your expenses. If this is a goal of yours, check out How to Start Saving to Become Independent. Later in life, the mention of financial independence may conjure the aspiration to cover living expenses without working, as many people hope to do during retirement. Whatever your personal goal, there are sound financial strategies you can implement at any age that will readily help to increase your financial independence.

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Set specific goals and stick with the plan. Understand that achieving financial independence is a long-term process. Speed bumps on the road to financial independence are inevitable. Overcome temporary setbacks by sticking to a responsible financial plan. If you focus on each financial goal you set for yourself, always look for options to increase your income and reduce your expenses, and save strategically, youll steadily improve your financial stability.

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Question

Is the 401(k) in Canada, or just the USA?

The 401(k) exists only in the U.S. Canada has a similar plan, the Registered Retirement Savings Plan.

Ask a Question

Thanks to all authors for creating a page that has been read 35,963 times.

YesNo

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3 Ways to Achieve Financial Independence – wikiHow

ChooseFI | Join the Financial Independence Movement

Most of us spend our time on earth thinking that we know the rules. We stumble through life making the same choices as our peers and our parents. We stay inside the lines and we make safe choices. Predictable choices like a 9-5 job, a 30 year fixed mortgage and a 4% savings rate in our 401K

What if you woke up one day and realized that these normal choices were horrible and there was a better way?

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ChooseFI | Join the Financial Independence Movement

financial independence / early retirement – reddit

Dear readers, I came across this section of Reddit not too long ago. I’m awestruck by the quality of discussions here. I present a narrative of a person who I dearly loved. He had pledged allegiance to financial independence at a young age. Also, I must mention that English isn’t my native language. My apologies if there are errors.

5 years ago a person dear to me departed for the divine abode. He was 54 years old. Before I share the cause for deterioration of his being, I deem it appropriate to share a succinct description of his life.

He was my mother’s first cousin. Despite the seemingly distant relationship our ties were exceedingly healthy. He didn’t have a blood sister. Hence, he adored my mother. He was a fine man. Refined , cultivated, considerate and benevolent would be his major characteristics.

He was born in a middle class family. His performance in academics had been exemplary since middle school. He pursued a bachelor’s degree in commerce and prepared for the laborious course of Chartered Accountancy.

His determination paid him rich dividends. He passed both the courses with flying colours.On being granted his degree certificate he secured a job as an equity analyst at a leading reinsurance company.

Slowly yet steadily he ascended the corporate ladder. He got involved in a conjugal relationship at the age of 29. Two years later they were blessed with a baby girl.

He was a human par excellence. But, he did have some flaws. He was a miserly person.His disinclination to spend often led to friction in his household. He despised visiting restaurants , detested intercity travelling and abhorred acquisition of materials.

He enjoyed living a spartan life. His was a life not distinct from an ascetic. He was a corporate ascetic. But, it’s crucial to note that he was a kind soul. Anytime someone sought help for urgent, important matters he would offer wholehearted support – Monetary and Emotional.

All this while he was growing at a pace in his company that could generate envy in others.Time passes swiftly. His daughter graduated with a degree in commerce. He encouraged her to pursue Chartered Accountancy.

But, she was desirous of pursuing a career in hospitality. He was displeased but didn’t prove to be an impediment in her journey.

In the years that passed he had made a fortune. It was enough money to last 2 lifetimes. Now in his late 40s he realised that he hadn’t spent as much time as he should have with his family and friends.

He would often pacify his wife by asserting that they would embark on a world tour post his retirement which was just 8 years away. He yearned to settle in close proximity of the hills. Away from the din, pollution and chaos of urban areas.But, that was not to be.

Without delving in the details I’ll share that on turning 53 years old his life was ruined when doctors revealed he was patient of cirrhosis.

This was a person who hadn’t ever consumed alcohol or smoked cigarettes.We were devastated. It was a heart rending revelation.

Doctors shared that a liver transplant could help him. But, they weren’t confident.But my uncle was keen to survive, to thrive. He had many, many unfulfilled desires.Fiscally he was comfortably placed and could afford a transplant by taking some difficult decisions.

Those who are aware of the procedure for transplant operations will know that waiting lists are excruciatingly long. After a waiting period of 8 months, thanks to the Almighty’s grace he was presented with an opportunity to undergo the surgery.

Those who occupied higher slots in the waiting list refused to accept the organ. My uncle was exultant. His hopes rose. Once again he began to harbour a desire to live.

The operation was performed by an illustrious hepatologist. Those were distressing times. The surgery concluded. We were emphatically told that it was a success. But, his condition continued to worsen in the hospital.

Day after day, his health decayed. After 10 days of admittance in the hospital he gave up on life. He departed for a higher journey.

Doctors informed us impassively. Squeals, cried pierced the waiting room. Tears rolled down our cheeks. We were filled with indignation.

He passed away at 54. He didn’t enjoy his life. He denied himself an opportunity to enjoy. His dream of visiting countries around the globe was left unfulfilled. And so was his hope of residing in a rural area.

He delayed attainment of pleasure. He lived for tomorrow. But, the tomorrow he survived for didn’t come.

The objective of this post isn’t to glorify a life devoid of planning. It’s essential to plan for tomorrow and live an organised life. But, it happens frequently that in the fond hope of relishing our future we ruin our present.

We nurse a misplaced belief that there’s quite some time before the stoppage of our existence. But, we never know.

This very moment could be my last for all I know. I wish all of you a long and healthy life. But I’d like to humbly submit that all we have is NOW. NO ONE GUARANTEES OUR TOMORROW.

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