I’m updating my visual aid for my goal of financial independence. The blue line measures my expenses and the red line measures my projected passive income. Read my assumptions to get this figure here. Here is where I stood at the end of November 2013: As much as I love my charts, I find the… Read More »
This is the third installment of my ongoing series: Things that I don’t spend money on. Cars Cars are super convenient, warm in the winter, cool in the summer, not crowded with strangers, powerful, shiny status symbols. Not owning a car is almost un-American, eschewing all that she has to offer – the wide open… Read More »
I’m updating my visual aid each month and here is where I stood at the end of October 2013 for my goal of financial independence. As soon as my monthly expenses line crosses my projected passive income line, I will dance a jig. My passive income reflects growth in my net worth. Read my assumptions to get this… Read More »
These are more things that I don’t spend money on, but unlike the first post about habits, I won’t silently judge you for indulging in these. Cable I see the value of cable. Maybe television is your primary form of entertainment. Maybe you’re a sports buff and have no other way of catching the game.… Read More »
These are things that I don’t spend money on. Cigarettes I understand why people like cigarettes. The little nicotine buzz can be delicious. Unfortunately, the delicious buzz needs to be repeated again and again and again. Cigarettes are full of an addicting combination of ingredients all vying for your undying loyalty while slowly destroying your… Read More »
The most valuable thing money can buy is freedom from having to worry about money. Unless you live with one of those tribes in the Amazon that have had no contact with the vast majority of human-beings, you will cross paths with money (“Cash”) constantly. It’s up to you to decide if Cash will be your… Read More »
I’m updating my visual aid each month and here is where I stood at the end of September 2013 for my goal of financial independence. My passive income reflects growth in my net worth. Read my assumptions to get this figure here. My expenses have been higher than normal the last few months. This was my… Read More »
Step 1) Make two lists. On the first list, write down everything you need. On the second list, write down everything you want. Differentiating between a need and a want is a crucial step in bulking up your financial avatar. Hint: Almost everything is a want. Here’s an example. Needs Toilet Paper Dog food Bread Wants The… Read More »
Compound interest is a marvelous mathematical tool that’s either working for you or against you. Rich people stay rich and get richer by understanding the power of Compound Interest. Poor people stay poor and get poorer by an inability to use the power of compound interest. It all starts with your income and expenses. Rich Keep your expenses line… Read More »
I like simple. I have about three months of living expenses in a checking account and every bill is paid out of that account. My paychecks deposit a little more than half my average monthly expenses into that checking account twice a month. The rest is spent buying a Vanguard Index Fund, specifically VTSAX. Simple.… Read More »