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The ideas presented on this blog are what has worked for me and many others. However, past performance does guarantee future results. I also cannot know everything about your personal situation. I am not a professional investment advisor, lawyer, or tax professional. Therefore, nothing on this Blog constitutes investment advice or any recommendation that any security, portfolio of securities, investment product, transaction, or investment strategy is suitable for any specific person.

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Thrifty Thursday - Save Thousands on Your Phone Plan

Recurring expenses are insidious. Companies love signing you up for subscription services as it means a consistent revenue stream by default. The burden is on the consumer to take action, but momentum and inaction usually win out and the payments keep getting made. Taking a hard look at these subscriptions and other recurring payments can be very effective in reducing annual expenses, thereby lowering your Target FI Number and leaving more money for saving and investing . Some expenses that don’t bring enough value can be eliminated. Others can be greatly reduced with a little intentionality (just get a month or two of that streaming service to binge your favorite show, no need to leave it renewing for the whole year!) However, there are some that are necessary but we can work on reducing their impact. One of my favorite hacks is switching to a low-cost cell phone plan offered by a Mobile Virtual Network Operator. MVNOs lease bandwidth on existing cell towers ins

Intentional Spending

Your spending is an important factor in your financial independence journey. It effects the rate at which you can save and invest while in the accumulation phase and is also a critical factor in calculating your Target FI Number. When accumulating wealth, the amount you can save and invest is a simple calculation: what you make minus what you spend. Like many of the levers we talk about, your spending has a non-liner effect on your FI journey. Spending slightly less also means saving slightly more and both of those quantities are found in the formula for Stash Rate , leading to a multiplied effect. $$ Stash Rate = {Annual\ Savings \over Annual\ Expenses} $$ As we saw in the Stash Rate article, decreasing expenses leads to an exponentially increasing rate of wealth building. On the other side of financial independence, the level of spending in your drawdown phase directly determines your Target FI Number. $$ Target\ FI\ Numbe

Stocks: How to Pay Someone Else to Work for You

When you work for a company, you work to build someone else’s wealth. When you own a company, other people work to build your wealth. Fortunately, you don’t have to be Bill Gates or Elon Musk to own a profitable company. Instead, as we touched on briefly in the article on assets vs. liabilities , you can buy stock in the company. Buying a share of stock mean you actually own a small piece of a company. One of the most efficient ways to own stocks is by purchasing low-cost index funds. These funds can either be in the form of mutual funds or Exchange Traded Funds (ETFs). The key difference to a traditional actively managed fund is that the index fund simply tracks the relevant market. For example, an S&P 500 index fund would hold shares of the largest 500 U.S. companies In the S&P 500’s case, the largest 500 with some consistent caveats: at least 10% must be publicly available for trade

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