What has been your most important skill in achieving financial independence?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 12:29 pm

I'm 22 years old, beginning my career and I'm curious to hear from other people closer to financial independence what have been some of the most important "non-financial" skills they attribute to their FI.

Right now I have a job I like and no debt, plus contributing 20-25% gross income to retirement every year. My instinct tells me to keep up my personal education with tons of books and work hard to develop my cross-industry skills in my current job - things like communication, time management, etc.

I've always felt more drawn toward meaningful improvement in oneself as a means to financial independence as opposed to nickel and diming expenses with a budget/using coupons type mentality.

Might be overthinking this.

Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.

mptfan
Posts: 4626
Joined: Mon Mar 05, 2007 9:58 am

Re: What has been your most important skill in achieving financial independence?

Post by mptfan » Sat Feb 17, 2018 12:36 pm

Saving is very important, but at age 22, I think the most important thing you can do is focus on increasing your earning potential in terms of gaining the education and experience and skills that will allow you to earn more money as you get older. Saving 20% of $100,000 goes a lot further towards financial independence than saving 20% of $30,000.

User avatar
Alexa9
Posts: 1503
Joined: Tue Aug 30, 2016 9:41 am

Re: What has been your most important skill in achieving financial independence?

Post by Alexa9 » Sat Feb 17, 2018 12:37 pm

Minimalist lifestyle: roof over your head, healthy food, healthcare, and transportation. Inexpensive hobbies and minimal travel. I'd much rather drive a Toyota and retire sooner than a Mercedes.

User avatar
Taylor Larimore
Advisory Board
Posts: 27329
Joined: Tue Feb 27, 2007 8:09 pm
Location: Miami FL

Stay the Course

Post by Taylor Larimore » Sat Feb 17, 2018 12:41 pm

sonofdelrinson:

I read your earlier posts.

All I can say is that you are on your way to investment success. -- Stay the course.
The enemy of a good plan is the dream of a perfect plan. -- Jack Bogle
Congratulations and best wishes.

Taylor
"Simplicity is the master key to financial success." -- Jack Bogle

User avatar
Ged
Posts: 3578
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: What has been your most important skill in achieving financial independence?

Post by Ged » Sat Feb 17, 2018 12:55 pm

Marrying a smart frugal hard working woman.

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 12:57 pm

Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
Any advice on that front? :D

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: Stay the Course

Post by sonofdelrinson » Sat Feb 17, 2018 12:58 pm

Taylor Larimore wrote:
Sat Feb 17, 2018 12:41 pm
sonofdelrinson:

I read your earlier posts.

All I can say is that you are on your way to investment success. -- Stay the course.
The enemy of a good plan is the dream of a perfect plan. -- Jack Bogle
Congratulations and best wishes.

Taylor
Hopefully! I guess I'll find out soon enough...but thanks for the kind words. Interesting quote...it's far too easy to obsess over this stuff to the detriment of everything else that actually matters in your life.

User avatar
Ged
Posts: 3578
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: What has been your most important skill in achieving financial independence?

Post by Ged » Sat Feb 17, 2018 1:30 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 12:57 pm
Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
Any advice on that front? :D
I found mine in graduate school. At the time she was on a prestigious scholarship for her tuition, and working odd jobs to pay for room and board.

Limoncello402
Posts: 94
Joined: Wed May 03, 2017 3:58 pm

Re: What has been your most important skill in achieving financial independence?

Post by Limoncello402 » Sat Feb 17, 2018 1:35 pm

Granted, because I was in graduate school until age 29 (Ph.D.) I started quite late, but the very best advice I received was: 1) pay yourself first; and 2) take full advantage of any 401b matches your employer offers. "Pay yourself first" means having a percentage of your take home pay automatically transferred to savings so that it is completely on autopilot and you never even miss it.
As a third piece of advice, if and when you are ready to buy a house, try hard to buy for location, location, location and a great house that you like. The payoff for those who "stay put" for many years is very large.

itstoomuch
Posts: 5343
Joined: Mon Dec 15, 2014 12:17 pm
Location: midValley OR

Re: What has been your most important skill in achieving financial independence?

Post by itstoomuch » Sat Feb 17, 2018 1:38 pm

Assuming and passing Risk :oops:
Rev012718; 4 Incm stream buckets: SS+pension; dfr'd GLWB VA & FI anntys, by time & $$ laddered; Discretionary; Rentals. LTCi. Own, not asset. Tax TBT%. Early SS. FundRatio (FR) >1.1 67/70yo

Point
Posts: 93
Joined: Mon Jul 10, 2017 9:33 pm

Re: What has been your most important skill in achieving financial independence?

Post by Point » Sat Feb 17, 2018 1:43 pm

Living below my means. Taking every paycheck increase and investing it. Maxing our 401k each year. Buying a car and keeping it a minimum of 10 years. Paying off credit cards fully each month. Not following the joneses. Waiting a month before any large purchase. Going to Costco and not using a cart. Living on a budget. Putting a fixed amount of cash in my wallet each week and when it’s gone spending stops.

User avatar
KlingKlang
Posts: 692
Joined: Wed Oct 16, 2013 3:26 pm

Re: What has been your most important skill in achieving financial independence?

Post by KlingKlang » Sat Feb 17, 2018 1:47 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 12:57 pm
Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
Any advice on that front? :D
My worst date ever was with a girl who looked at the menu (this was in 1982) and exclaimed "There's nothing on here over $25!", this apparently being her criterion for whether a restaurant was any good or not. My future wife would always order the same thing as I did or less (< $25) even though I repeatedly told her that she could order anything that she liked.
Last edited by KlingKlang on Sat Feb 17, 2018 1:50 pm, edited 1 time in total.

Windylotus
Posts: 51
Joined: Thu Nov 30, 2017 10:49 pm

Re: What has been your most important skill in achieving financial independence?

Post by Windylotus » Sat Feb 17, 2018 1:48 pm

Alexa9 wrote:
Sat Feb 17, 2018 12:37 pm
Minimalist lifestyle: roof over your head, healthy food, healthcare, and transportation. Inexpensive hobbies and minimal travel. I'd much rather drive a Toyota and retire sooner than a Mercedes.
+1

DrGoogle2017
Posts: 1322
Joined: Mon Aug 14, 2017 12:31 pm

Re: What has been your most important skill in achieving financial independence?

Post by DrGoogle2017 » Sat Feb 17, 2018 1:50 pm

High paying jobs for both spouses that enable us to buy real estate in desirable areas. That and also maxed out retirement savings.
Last edited by DrGoogle2017 on Sat Feb 17, 2018 1:55 pm, edited 1 time in total.

Always passive
Posts: 300
Joined: Fri Apr 14, 2017 4:25 am
Location: Israel

Re: What has been your most important skill in achieving financial independence?

Post by Always passive » Sat Feb 17, 2018 1:53 pm

Patience and discipline

livesoft
Posts: 62361
Joined: Thu Mar 01, 2007 8:00 pm

Re: What has been your most important skill in achieving financial independence?

Post by livesoft » Sat Feb 17, 2018 1:59 pm

Not spending my own money.
Wiki This signature message sponsored by sscritic: Learn to fish.

Khanmots
Posts: 1233
Joined: Sat Jun 11, 2011 2:27 pm

Re: What has been your most important skill in achieving financial independence?

Post by Khanmots » Sat Feb 17, 2018 2:11 pm

I don't try to keep up with the Joneses.

User avatar
Raybo
Posts: 1659
Joined: Tue Feb 20, 2007 11:02 am
Location: San Francisco
Contact:

Re: What has been your most important skill in achieving financial independence?

Post by Raybo » Sat Feb 17, 2018 2:17 pm

Try to get good at two unrelated things that, when combined together, uniquely qualify you to do a high paying (and satisfying) job.
No matter how long the hill, if you keep pedaling you'll eventually get up to the top.

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 2:20 pm

Raybo wrote:
Sat Feb 17, 2018 2:17 pm
Try to get good at two unrelated things that, when combined together, uniquely qualify you to do a high paying (and satisfying) job.
Very interesting...mind expanding on this a bit more? Examples?

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 2:21 pm

KlingKlang wrote:
Sat Feb 17, 2018 1:47 pm
sonofdelrinson wrote:
Sat Feb 17, 2018 12:57 pm
Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
Any advice on that front? :D
My worst date ever was with a girl who looked at the menu (this was in 1982) and exclaimed "There's nothing on here over $25!", this apparently being her criterion for whether a restaurant was any good or not. My future wife would always order the same thing as I did or less (< $25) even though I repeatedly told her that she could order anything that she liked.
Hah! Sounds like a major red flag...It's amazing that someone would actually say something like that.

User avatar
Phineas J. Whoopee
Posts: 7422
Joined: Sun Dec 18, 2011 6:18 pm

Re: What has been your most important skill in achieving financial independence?

Post by Phineas J. Whoopee » Sat Feb 17, 2018 2:25 pm

Elementary-school arithmetic.
PJW

JBTX
Posts: 3960
Joined: Wed Jul 26, 2017 12:46 pm

Re: What has been your most important skill in achieving financial independence?

Post by JBTX » Sat Feb 17, 2018 3:05 pm

Evaluate spending choices based up on future opportunity cost. In other words, what may cost you $100 now may mean you are giving up $400 in accumulated savings including tax free growth at retirement. Now is that $100 purchase really worth $400 to you?

RadAudit
Posts: 3006
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: What has been your most important skill in achieving financial independence?

Post by RadAudit » Sat Feb 17, 2018 3:38 pm

Probably the most important skill in achieving FI is wanting to be FI.

Here's a summary of a book (by the author) I wish I had read 50 years ago. (It's been updated) Don't know if it'll work for you; but, it's an approach.

https://vickirobin.com/books/summary-of ... your-life/

Here's a link to the book. It's a little too touchy feely for this day and age - but might be worth the slog through it. The initial edition was a little weak on investments. The updated version may be weak, too. These folks were definitely not BHers. You've been warned.

https://www.barnesandnoble.com/w/your-m ... 1101987457#/
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The Calvary isn't coming, kids. You are on your own.

User avatar
catdude
Posts: 1540
Joined: Mon Jul 16, 2007 8:11 pm
Location: Central Oregon

Re: What has been your most important skill in achieving financial independence?

Post by catdude » Sat Feb 17, 2018 3:49 pm

Being the kind of person who doesn't need all that much to be happy.
catdude | | All generalizations are false, including this one.

LFKB
Posts: 512
Joined: Mon Dec 24, 2012 7:06 pm

Re: What has been your most important skill in achieving financial independence?

Post by LFKB » Sat Feb 17, 2018 3:57 pm

Making lots of money

JoeRetire
Posts: 1521
Joined: Tue Jan 16, 2018 2:44 pm

Re: What has been your most important skill in achieving financial independence?

Post by JoeRetire » Sat Feb 17, 2018 4:02 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 12:29 pm
I'm 22 years old, beginning my career and I'm curious to hear from other people closer to financial independence what have been some of the most important "non-financial" skills they attribute to their FI.
Is luck a "skill"?

I'm financially independent. I worked hard my whole life to get there, and retired at 60. But everyone still needs some luck to succeed in any plan.

I'm lucky to have been healthy. I'm lucky to have been born with the ability to learn what I needed to learn and to gain the accreditations I have needed. I'm lucky to have been born in a time where I could acquire and use skills I enjoyed that provided a lucrative career. I'm lucky to have married and stay married a woman with a similar outlook on finances. I'm lucky to have been raised in an environment where I could learn to live frugally.
Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.
That depends on how much it takes to fund the lifestyle you want when you are FI, and how much you make now.
25% sounds great, but it depends.
Last edited by JoeRetire on Sat Feb 17, 2018 4:07 pm, edited 2 times in total.

User avatar
Toons
Posts: 12934
Joined: Fri Nov 21, 2008 10:20 am
Location: Hills of Tennessee

Re: What has been your most important skill in achieving financial independence?

Post by Toons » Sat Feb 17, 2018 4:02 pm

Discipline.
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

User avatar
fishandgolf
Posts: 358
Joined: Fri Nov 25, 2016 2:50 pm

Re: What has been your most important skill in achieving financial independence?

Post by fishandgolf » Sat Feb 17, 2018 4:09 pm

Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
+48......dated 8 years (high school sweetheart) married 40 years.....

........And Jack Bogle pioneering the Index Fund. He took a lot of grief back in the day but he, along with his vision to birth Vanguard (there's an old saying...."the pioneers are the ones with the arrows in their chest).......

My skills.....simply applying his common sense approach to investing.......it really is that simple... :sharebeer

KlangFool
Posts: 9993
Joined: Sat Oct 11, 2008 12:35 pm

Re: What has been your most important skill in achieving financial independence?

Post by KlangFool » Sat Feb 17, 2018 4:12 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 12:29 pm

Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.
sonofdelrinson,

1) Are you saving for Retirement or FI?

A) Retirement means that you are targeting to reach your number around 62/65/67. And, your number is based on retirement expense. The number is 25X retirement expense.

B) FI could happen at any age. It is based on current annual expense. The number is 25X to 50X current annual expense.

<<Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.>>

2) Your savings is 50% of your current annual expense. It is a simple math to calculate when you can reach FI.

Starting Net Worth $0
Annual Savings 0.50
Years
Annual Return
Rate 5 10 15 20 25 30 35
5.00% 2.76 6.29 10.79 16.53 23.86 33.22 45.16
6.00% 2.82 6.59 11.64 18.39 27.43 39.53 55.72
7.00% 2.88 6.91 12.56 20.50 31.62 47.23 69.12
8.00% 2.93 7.24 13.58 22.88 36.55 56.64 86.16
9.00% 2.99 7.60 14.68 25.58 42.35 68.15 107.86

You need 20 to 25 years of continuous full-time employment to reach FI. That means you need to survive at least 2 or more recessions without any permanent financial disaster. Are you that lucky?

KlangFool

User avatar
mrspock
Posts: 50
Joined: Tue Feb 13, 2018 2:49 am
Location: Vulcan

Re: What has been your most important skill in achieving financial independence?

Post by mrspock » Sat Feb 17, 2018 4:18 pm

As many others have stated: living below my means, and keeping my costs (more or less) constant as my earning potential has risen. I'm not sure this is a "skill" more of a trait, but I've always felt it's been a big asset for me FI wise: I'm emotionally very "level"...I don't get super down, I don't get super excited about much, so it's probably easier for me to avoid life's temptations than most. I'm not sure if this a consequence of luck, genetics or that I exercise religiously for the last 15 years of my life....but it's been huge to "stay the course" and not let greed or gluttony get the better of me (most of the time :D).

User avatar
5th_Dimension
Posts: 82
Joined: Mon Jul 11, 2016 1:05 am

Re: What has been your most important skill in achieving financial independence?

Post by 5th_Dimension » Sat Feb 17, 2018 4:35 pm

Learning and understanding how compounding interest works. It sounds very basic but before I realized what I was paying in credit card interest I was on the road to ruin. Once I understood I was able to make a series of moves to lower the interest rates on the debt and then became debt free. The skill then allowed me to make smarter purchases going forward. Now the knowledge of compounding interest has put me on the road to financial independence. Sometimes a little knowledge goes a long way.
"My idea of rich is ordering the most expensive thing at Denny's"

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 4:51 pm

KlangFool wrote:
Sat Feb 17, 2018 4:12 pm
sonofdelrinson wrote:
Sat Feb 17, 2018 12:29 pm

Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.
sonofdelrinson,

1) Are you saving for Retirement or FI?

A) Retirement means that you are targeting to reach your number around 62/65/67. And, your number is based on retirement expense. The number is 25X retirement expense.

B) FI could happen at any age. It is based on current annual expense. The number is 25X to 50X current annual expense.

<<Side question - is saving 25% gross income aggressive enough to "safely" achieve FI at age 65? I've found 25% savings, 25% tax, 40% need, 10% want to be a nice guideline...curious what other people use.>>

2) Your savings is 50% of your current annual expense. It is a simple math to calculate when you can reach FI.

Starting Net Worth $0
Annual Savings 0.50
Years
Annual Return
Rate 5 10 15 20 25 30 35
5.00% 2.76 6.29 10.79 16.53 23.86 33.22 45.16
6.00% 2.82 6.59 11.64 18.39 27.43 39.53 55.72
7.00% 2.88 6.91 12.56 20.50 31.62 47.23 69.12
8.00% 2.93 7.24 13.58 22.88 36.55 56.64 86.16
9.00% 2.99 7.60 14.68 25.58 42.35 68.15 107.86

You need 20 to 25 years of continuous full-time employment to reach FI. That means you need to survive at least 2 or more recessions without any permanent financial disaster. Are you that lucky?

KlangFool
Hey I should have clarified - I meant for retirement at 65. I don't really have any longterm big items I'm saving for like a house or big vacation. Basically I'm having trouble estimating what my COL would be at retirement age. I'm not married/ dont have kids, but that may change and I guess there's no way to know what my expenses would be. I'm thinking I can just estimate conservatively...something like $75k/yr (in today's dollars) if it was just me. With kids / wife is at as simple as doubling that amount for planning purposes?

Also, about surviving the financial recessions...is that "being lucky" part in the context of FI before age 65? Because I thought recessions aren't a big deal as long as you stay the course (assuming I'm in it for the long haul). Not sure what luck has to do with anything. My understanding is that as long as I can keep an even-temperament and that the US economy as a whole doesn't go to ruin/complete war then I'll be fine. Please correct me if my assumptions are wrong... I'm interested to know as much as possible about this stuff.

User avatar
celia
Posts: 8233
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: What has been your most important skill in achieving financial independence?

Post by celia » Sat Feb 17, 2018 4:58 pm

Learn to do your own taxes.

Make a budget and learn to live with it. (Many people have no idea where their money goes. Don't be like them.)

Comparison shop instead of picking the first <whatever> you find.

Pay off your mortgage early if you have a high interest rate.

Find friends who like to do inexpensive things (pot lucks instead of fancy restaurants, play board games instead of going to the theater, play a sport instead of paying to watch someone else play it, ...)

PFInterest
Posts: 2137
Joined: Sun Jan 08, 2017 12:25 pm

Re: What has been your most important skill in achieving financial independence?

Post by PFInterest » Sat Feb 17, 2018 4:59 pm

Earning money, then saving at least 40% of it.

User avatar
steve roy
Posts: 1576
Joined: Thu May 13, 2010 5:16 pm

Re: What has been your most important skill in achieving financial independence?

Post by steve roy » Sat Feb 17, 2018 5:02 pm

Most important skill? Leaving things (i.e., the assets in the investment allocations) alone.
Last edited by steve roy on Sat Feb 17, 2018 6:57 pm, edited 1 time in total.

Barefoot
Posts: 83
Joined: Tue Sep 27, 2016 8:30 pm

Re: What has been your most important skill in achieving financial independence?

Post by Barefoot » Sat Feb 17, 2018 5:03 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 4:51 pm
Because I thought recessions aren't a big deal
They are if you lose your job...

Trader/Investor
Posts: 246
Joined: Wed Dec 02, 2015 9:35 pm

Re: What has been your most important skill in achieving financial independence?

Post by Trader/Investor » Sat Feb 17, 2018 5:08 pm

Being a maverick, fiercely independent, marching to my own beat, not following the crowd or conventional wisdom and never listening to the so-called experts.

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 5:14 pm

PFInterest wrote:
Sat Feb 17, 2018 4:59 pm
Earning money, then saving at least 40% of it.
Man that's a high rate of savings. Is that off your gross income, or net? Seems like that would only be possible after passing around $60k or $70k annual income and retaining your style of living.

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 5:14 pm

Barefoot wrote:
Sat Feb 17, 2018 5:03 pm
sonofdelrinson wrote:
Sat Feb 17, 2018 4:51 pm
Because I thought recessions aren't a big deal
They are if you lose your job...
Ah, didn't think about that one.

User avatar
Tycoon
Posts: 1256
Joined: Wed Mar 28, 2012 7:06 pm

Re: What has been your most important skill in achieving financial independence?

Post by Tycoon » Sat Feb 17, 2018 5:21 pm

Patience was(is) most important. Ignoring prognosticators and economic geniuses was(is) second most important.
Appeal to Pity:When pity is envoked to support a statement | Appeal to Popular Sentiment:Appealing to unrelated prejudices and attitudes | Hasty Generalization:Too little evidence to support the conclusion

KlangFool
Posts: 9993
Joined: Sat Oct 11, 2008 12:35 pm

Re: What has been your most important skill in achieving financial independence?

Post by KlangFool » Sat Feb 17, 2018 5:23 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 4:51 pm

Also, about surviving the financial recessions...is that "being lucky" part in the context of FI before age 65? Because I thought recessions aren't a big deal as long as you stay the course (assuming I'm in it for the long haul). Not sure what luck has to do with anything. My understanding is that as long as I can keep an even-temperament and that the US economy as a whole doesn't go to ruin/complete war then I'll be fine. Please correct me if my assumptions are wrong... I'm interested to know as much as possible about this stuff.
sonofdelrinson,

Let's assume that the recession starts tomorrow and you are unemployed for 1 to 2 years, how much will that cost you financially? Let's assume that you are normal people with average luck and you are unemployed for 1 year for every recession, how will that impact you financially?

KlangFool

PFInterest
Posts: 2137
Joined: Sun Jan 08, 2017 12:25 pm

Re: What has been your most important skill in achieving financial independence?

Post by PFInterest » Sat Feb 17, 2018 5:25 pm

sonofdelrinson wrote:
Sat Feb 17, 2018 5:14 pm
PFInterest wrote:
Sat Feb 17, 2018 4:59 pm
Earning money, then saving at least 40% of it.
Man that's a high rate of savings. Is that off your gross income, or net? Seems like that would only be possible after passing around $60k or $70k annual income and retaining your style of living.
Gross.

User avatar
DanMahowny
Posts: 479
Joined: Sun Aug 06, 2017 8:25 pm

Re: What has been your most important skill in achieving financial independence?

Post by DanMahowny » Sat Feb 17, 2018 5:27 pm

Ged wrote:
Sat Feb 17, 2018 12:55 pm
Marrying a smart frugal hard working woman.
You must know my wife?
Funding secured

KlangFool
Posts: 9993
Joined: Sat Oct 11, 2008 12:35 pm

Re: What has been your most important skill in achieving financial independence?

Post by KlangFool » Sat Feb 17, 2018 5:33 pm

OP,

30+% of gross saving rate. Aka, save one year of annual expense every year while I was employed. This hopefully will let me reach my FI goal in the next few years in spite of

A) Lost 50% of my net worth in Telecom bust 10+ years

B) Unemployed for more than 1 year a few times.

KlangFool
Last edited by KlangFool on Sat Feb 17, 2018 5:35 pm, edited 1 time in total.

KlangFool
Posts: 9993
Joined: Sat Oct 11, 2008 12:35 pm

Re: What has been your most important skill in achieving financial independence?

Post by KlangFool » Sat Feb 17, 2018 5:35 pm

OP,

You should read the book, "The Millionaire Next Door".

KlangFool

User avatar
Sandtrap
Posts: 5252
Joined: Sat Nov 26, 2016 6:32 pm
Location: Hawaii😀 Northern AZ.😳 Retired.

Re: What has been your most important skill in achieving financial independence?

Post by Sandtrap » Sat Feb 17, 2018 5:41 pm

The Love of Work
Humility to ask for advice from mentors that have "walked the talk". . . and recognize them. . . and also "walk the talk".
Broad and Deep Skillset
Ambition
True Grit
Frugality

Read;
"The Millionaire Next Door"
https://www.amazon.com/Millionaire-Next ... 236&sr=8-2

j :D
Last edited by Sandtrap on Sat Feb 17, 2018 5:50 pm, edited 1 time in total.

User avatar
Christine_NM
Posts: 2634
Joined: Tue Feb 20, 2007 1:13 am
Location: New Mexico

Re: What has been your most important skill in achieving financial independence?

Post by Christine_NM » Sat Feb 17, 2018 5:46 pm

I've thought about this a lot, now that I'm FI, and I believe learning Excel was the tipping point. I was always willing to save. But until I could model how the future might look numerically I had no idea if I was saving enough, too little or too much.
17% cash 47% stock 36% bond. Retired, w/d rate 2.85%

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 5:48 pm

KlangFool wrote:
Sat Feb 17, 2018 5:33 pm
OP,

30+% of gross saving rate. Aka, save one year of annual expense every year while I was employed. This hopefully will let me reach my FI goal in the next few years in spite of

A) Lost 50% of my net worth in Telecom bust 10+ years

B) Unemployed for more than 1 year a few times.

KlangFool
Wow, that's awesome - congrats.

Seems much easier to hit that rate if you reverse engineer it and refuse to save less than 30% of income.

User avatar
cfs
Posts: 4154
Joined: Fri Feb 23, 2007 1:22 am
Location: ~ Mi Propio Camino ~

Re: What has been your most important skill in achieving financial independence?

Post by cfs » Sat Feb 17, 2018 5:49 pm

Skill? Investing as much as I could, having a professional/responsible wife, and investing 100% of her salary year after year. Good luck in your investing career and muchas gracias por leer ~cfs~
~ Member of the Active Retired Force since 2014 ~

sonofdelrinson
Posts: 30
Joined: Mon Jan 22, 2018 8:03 pm

Re: What has been your most important skill in achieving financial independence?

Post by sonofdelrinson » Sat Feb 17, 2018 5:50 pm

Christine_NM wrote:
Sat Feb 17, 2018 5:46 pm
I've thought about this a lot, now that I'm FI, and I believe learning Excel was the tipping point. I was always willing to save. But until I could model how the future might look numerically I had no idea if I was saving enough, too little or too much.
I really want to learn this!!! Any advice? I dont want to learn excel as a whole program, only as it relates to financial planning. I've never understood how people prefer it over other more complicated software.

Post Reply