What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes?

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bigtex
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What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes?

Post by bigtex » Mon Jul 22, 2019 2:31 pm

Does my question make sense? Regardless of if you make mistake after mistake financially, if you nail what two or three things, will you still wind up wealthy? Is it as simple as 1. Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?

What are some of your top things to do that will cause you to end up wealthy regardless of all the other smaller financial mistakes in life?

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David Jay
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by David Jay » Mon Jul 22, 2019 2:44 pm

3. Find a life partner who shares you financial vision
Prediction is very difficult, especially about the future - Niels Bohr | To get the "risk premium", you really do have to take the risk - nisiprius

mptfan
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by mptfan » Mon Jul 22, 2019 2:45 pm

4. Increase your income as much as possible.
5. Avoid debt as much as possible.
Last edited by mptfan on Mon Jul 22, 2019 2:46 pm, edited 1 time in total.

DaftInvestor
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by DaftInvestor » Mon Jul 22, 2019 2:45 pm

1. Get a job that pays a very high income. (can make up for mistakes if you make a lot of money)
or
2. Marry someone who is very rich.

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funktor
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by funktor » Mon Jul 22, 2019 2:46 pm

1. Spend far less than you earn
2. Invest savings from 1 according to the Boglehead's investment philosophy

Regarding "mistake after mistake financially":

Spending mistakes can't be too egregious if they are still allowing you to LBYM.

Investment mistakes will be minimized when adhering to sound principles.
It's easy to believe in something when you win all the time. The losses are what define a man's faith

mak1277
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by mak1277 » Mon Jul 22, 2019 2:51 pm

Make a lot of money. Mistakes are easier to handle if you make more initially.

Mike Scott
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Mike Scott » Mon Jul 22, 2019 3:04 pm

Choose wealthy ancestors who will leave you a trust fund and/or marry into the same. Other than having a huge bucket of money that someone else controls, I don't think there is a realistic way to make up for "numerous" other financial mistakes.

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Watty
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Watty » Mon Jul 22, 2019 3:06 pm

Not wealthy but was able to start a middle class retirement when I was in my 50s.

The big things I did were;

1) Moved from a high cost of living area to a low cost of living area when I was about 30 and wanted to buy my first house.

2) For a long time I committed to myself to save half of any future pay increases. That was painless since I never got used to the money and I still got some more take home pay when I got a raise. That also limited my lifestyle creep.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by sambb » Mon Jul 22, 2019 3:09 pm

be nice at work, be productive, be a team player, dont presume that you know more than the company or the leadership if you are not at the C-suite meetings, and understand the company's vision and how to get things done. Do all of the above with integrity. Lastly, work 5-10% harder than the others at work, and smile.
Last edited by sambb on Mon Jul 22, 2019 3:10 pm, edited 1 time in total.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Soon2BXProgrammer » Mon Jul 22, 2019 3:10 pm

bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Does my question make sense? Regardless of if you make mistake after mistake financially, if you nail what two or three things, will you still wind up wealthy? Is it as simple as 1. Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?

What are some of your top things to do that will cause you to end up wealthy regardless of all the other smaller financial mistakes in life?
#justsavehalf

SuperSaver1975
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by SuperSaver1975 » Mon Jul 22, 2019 3:11 pm

3. Live well below your means.
4. Marry a sugar mamma.
5. Learn from financial mistakes.

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mrspock
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by mrspock » Mon Jul 22, 2019 3:20 pm

5. Conversely, if you are “rich”, or highly paid. Consider prenups if marrying or cohab agreements if you choose not to marry. Do this, and you can make quite a few mistakes and not be ruined by events related to these decisions which might be beyond your control.

In short, figure out what the ending(s) looks like in divorce or break-up prior to entering into such arrangements. Ideally we want the ending to be our death at an old (old) age, but things don’t always go as planned, as many divorcees will attest. Understanding the expectations your partner has of you is critical.

If you aren’t comfortable having this convo... you probably should think twice. Either get to know your partner better until you are comfortable talking about this, or in the case you know their position is counter to your own (thus the avoidance), then wait until you are both aligned on the topic (in writing).

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GerryL
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by GerryL » Mon Jul 22, 2019 4:03 pm

What worked for me even when I knew little about investing:

1) Learn to live below your means at all times, even when your means are … pretty mean. When you are earning more $$, then live WELL below your means.
2) Save consistently, and automate savings whenever possible.

So, essentially, LBYM and PYF.

One thing that may have helped me was that I grew up at a time when single women could not get credit. Didn't have a chance to fall into debt.

GmanJeff
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by GmanJeff » Mon Jul 22, 2019 4:10 pm

Spend less than your income. The less you spend relative to your income, the faster you'll increase your wealth, and the wealthier you may be.

The second factor is to sensibly invest the difference over a long period of time, while not taking on excessive risk which may destroy your accumulated wealth in your quest for growth.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by GoldenFinch » Mon Jul 22, 2019 4:11 pm

Set your savings on automatic. Have a plan and stick to it!

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by DesertDiva » Mon Jul 22, 2019 4:14 pm

Stop making financial mistakes :happy

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Dottie57 » Mon Jul 22, 2019 4:15 pm

funktor wrote:
Mon Jul 22, 2019 2:46 pm
1. Spend far less than you earn
2. Invest savings from 1 according to the Boglehead's investment philosophy

Regarding "mistake after mistake financially":

Spending mistakes can't be too egregious if they are still allowing you to LBYM.

Investment mistakes will be minimized when adhering to sound principles.
This.

Nowizard
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Nowizard » Mon Jul 22, 2019 4:36 pm

Define "wealth" downward. :happy
Either have employment with upward trajectory or marriage to someone who also has at least a moderate income
Early and consistent investing to take advantage of compounding
Financial literacy resulting in self-managed investing
Factors beyond your control such as luck, good health, no major illnesses with other family members, divorce, etc.

Tim

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by bubbadog » Mon Jul 22, 2019 4:43 pm

David Jay wrote:
Mon Jul 22, 2019 2:44 pm
3. Find a life partner who shares you financial vision
+1 Hard to save if you both aren't on the same page.

Mako52
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Mako52 » Mon Jul 22, 2019 5:11 pm

Start a business that you are passionate about in an industry you know and like, and see yourself in for at least 10 years.

simple man
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by simple man » Mon Jul 22, 2019 5:15 pm

Understand how your taxes work, at all points in your life with different incomes and what options you can use to legally not pay more taxes than you have to. I find this is a very important one that is often overlooked. Good luck! :sharebeer

AZAttorney11
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by AZAttorney11 » Mon Jul 22, 2019 5:16 pm

As others have said, make a lot of money.

This forum is heavily skewed towards the cost-cutting side of the equation, which is important, but maximizing your human capital to drive the top-line is often overlooked in my opinion.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by TropikThunder » Mon Jul 22, 2019 5:54 pm

These are all sound suggestions, but they’re also the same boilerplate pieces of advice we give anyone regardless of personal situation. I don’t see any of these bits of advice being able to overcome mistake after mistake financially except for having rich ancestors give you a multi-million dollar trust that you can’t misuse. Many people can overcome a mistake or two, especially early in life. If you buy too much house in your 20’s and lose it to foreclosure after job loss, you can recover but not if you do it again in your 30’s and 40’s, run up credit card bills, invest in your cousin’s Ponzi scheme, buy a new BMW every year, let EJ mange your money, etc.

Q: How can I retire comfortably if I keep making financial mistakes?
A: Don’t keep making financial mistakes.
Not very helpful.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Miguelito » Mon Jul 22, 2019 5:59 pm

If you make very bad financial mistakes often enough, nothing will save you from financial ruin. But within reason, assuming that when you say "save" you mean put the money away in a low-cost, well-allocated portfolio, then sure, many of the things above will help. But many of them really just boil down to spending less than you make.

Beyond that, from what I have personally seen, 1) Make a lot of money/Marry into money - it will mask a lot of bad mistakes and poor spending, and 2) pick a partner with a similar mindset/don't get divorced.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by bluebolt » Mon Jul 22, 2019 5:59 pm

Living below your means and adjusting your goals to your income & returns will allow you to weather many kinds of mistakes. You also have to be willing to see mistakes, admit them, and change behavior, otherwise you will keep making them. Obviously, if your mistake is living constantly above your means, there's not much you can do to get wealthy except be super lucky.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Grt2bOutdoors » Mon Jul 22, 2019 6:14 pm

Playing offense is all well and good, but a good offense stands no chance unless they have a proper defense. To that end, consider this:

1) Protect yourself from risks you can not cover efficiently nor economically: Buy proper levels of insurance that is outsourced to a third party.
Examples of this are: Umbrella insurance, car insurance, home insurance
"One should invest based on their need, ability and willingness to take risk - Larry Swedroe" Asking Portfolio Questions

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by willthrill81 » Mon Jul 22, 2019 6:20 pm

1. Save a significant portion of your income, at least 20%.
2. Wisely invest your savings.
3. Insure your catastrophic financial risks at the lowest possible lifetime cost.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by heyyou » Mon Jul 22, 2019 6:22 pm

To help you live below your means, decide that what you already have, is good enough. Giving up the wanting of more/newer things is a big step. Trying to save more while feeling deprived, is not a good life. Saving your excess money because you know your current car, and your current residence, suit you, is a good life.

Note how many retirees here brag about how long their cars have lasted. See the pride in being frugal, instead of trying to impress others with brand new, costly items.

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ResearchMed
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by ResearchMed » Mon Jul 22, 2019 6:44 pm

bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Does my question make sense? Regardless of if you make mistake after mistake financially, if you nail what two or three things, will you still wind up wealthy? Is it as simple as 1. Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?

What are some of your top things to do that will cause you to end up wealthy regardless of all the other smaller financial mistakes in life?
I don't think this is possible.

There are folks that have won major lotteries (mega-millions) who end up broke because they DID "make mistake after mistake..."

Presumably, one could make some of those same mistakes, albeit on a smaller scale, such that you never get "wealthy" to begin with.

RM
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by H-Town » Mon Jul 22, 2019 6:48 pm

bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Does my question make sense? Regardless of if you make mistake after mistake financially, if you nail what two or three things, will you still wind up wealthy? Is it as simple as 1. Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?

What are some of your top things to do that will cause you to end up wealthy regardless of all the other smaller financial mistakes in life?
1) Be kind
2) Be generous

In my life, I see good and kind people typically end up with a happy life. They might not be millionaire but very fulfilled otherwise.
"The Mexican Fisherman and the Investment Banker"

An American investment banker was at the pier of a small coastal Mexican village when a small boat with just one fisherman docked. Inside the small boat were several large yellowfin tuna. The American complimented the Mexican on the quality of his fish and asked how long it took to catch them.
The Mexican replied, “only a little while.”
The American then asked why didn’t he stay out longer and catch more fish?
The Mexican said he had enough to support his family’s immediate needs.
The American then asked, “but what do you do with the rest of your time?”
The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, and stroll into the village each evening where I sip wine, and play guitar with my amigos. I have a full and busy life.”
The American scoffed. “I have an MBA from Harvard, and can help you,” he said. “You should spend more time fishing, and with the proceeds, buy a bigger boat. With the proceeds from the bigger boat, you could buy several boats, and eventually you would have a fleet of fishing boats. Instead of selling your catch to a middle-man, you could sell directly to the processor, eventually opening up your own cannery. You could control the product, processing, and distribution,” he said. “Of course, you would need to leave this small coastal fishing village and move to Mexico City, then Los Angeles, and eventually to New York City, where you will run your expanding enterprise.”
The Mexican fisherman asked, “But, how long will this all take?”
To which the American replied, “Oh, 15 to 20 years or so.”
“But what then?” asked the Mexican.
The American laughed and said, “That’s the best part. When the time was right, you would announce an IPO, and sell your company stock to the public and become very rich. You would make millions!”
“Millions – then what?”
The American said, “Then you could retire. Move to a small coastal fishing village where you could sleep late, fish a little, play with your kids, take siestas with your wife, and stroll to the village in the evenings where you could sip wine and play guitar with your amigos.”

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unclescrooge
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by unclescrooge » Mon Jul 22, 2019 6:53 pm

DaftInvestor wrote:
Mon Jul 22, 2019 2:45 pm
1. Get a job that pays a very high income. (can make up for mistakes if you make a lot of money)
or
2. Marry someone who is very rich.
I was going to say become a physician, but I guess any job with a high income in a field where you can work till you drop would do.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by NotWhoYouThink » Mon Jul 22, 2019 7:10 pm

Only have the kind of kids that are born healthy and stay that way.

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FIREchief
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by FIREchief » Mon Jul 22, 2019 7:15 pm

Get all you can (earn)
Can all you get (save)
Sit on the can (protect/preserve)

btw: life should be about much more than "winding up wealthy."
I am not a lawyer, accountant or financial advisor. Any advice or suggestions that I may provide shall be considered for entertainment purposes only.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by smectym » Mon Jul 22, 2019 7:24 pm

DaftInvestor wrote:
Mon Jul 22, 2019 2:45 pm
1. Get a job that pays a very high income. (can make up for mistakes if you make a lot of money)
or
2. Marry someone who is very rich.
Yes, both (1) and (2) work well. A variation on (2) is to marry someone who is very poor but has the human capital to become very rich.

I would add, as someone who admits to having made a lot of mistakes: try to make the kind of mistakes that, while they earn suboptimal returns vs. the "correct" strategy, do not generally result in absolute capital losses. A good example of the sort of *relatively* benign mistake I've made: screwing up the allocation of stocks and bonds in retirement vs. non-retirement accounts. The mistake costs you in taxes, but you're still generally participating in the gains of the stock and bond markets. Another mistake: being "too conservative" in asset allocation. Bad...probably leaving money on the table over the long run...but you're probably still making money, not absolutely LOSING money.

Problems such as out-of-control spending (and of course related syndromes such as drugs and gambling), by contrast, pose an extreme threat to almost any portfolio, and we're usually talking about draining or even wiping out the portfolio...not "only earning 5%" vs. the 7% the Ideal Boglehead might have earned

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by sf_tech_saver » Mon Jul 22, 2019 7:27 pm

Do whatever it takes to make it in the SF Bay Area tech scene.
VTI is a modern marvel

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by HEDGEFUNDIE » Mon Jul 22, 2019 7:30 pm

sf_tech_saver wrote:
Mon Jul 22, 2019 7:27 pm
Do whatever it takes to make it in the SF Bay Area tech scene.
+1.

Or even to be a non-eng hanger-on in the scene.

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bengal22
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by bengal22 » Mon Jul 22, 2019 7:34 pm

Earn all you can
Save all you can
Give all you can
(Marry Well)
"Earn All You Can; Give All You Can; Save All You Can." .... John Wesley

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by KlangFool » Mon Jul 22, 2019 8:15 pm

OP,

Save 30+% of your gross income. Aka, save 1 year of expense every year.

My good friend worked for Enron for 20+ years. He lost all his 401K savings due to Enron. He still retired at 62 years old.

KlangFool

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AerialWombat
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by AerialWombat » Mon Jul 22, 2019 8:20 pm

GerryL wrote:
Mon Jul 22, 2019 4:03 pm

So, essentially, LBYM and PYF.

+1

Do this, and the rest will follow.
“Life doesn’t come with a warranty.” -Michael LeBoeuf

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Nate79
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Nate79 » Mon Jul 22, 2019 8:28 pm

I agree with what has been posted but find it I interesting what has not really been mentioned yet (at least not explicitly, a couple hinted at it) and that is investing in low cost index funds. I find in investing details like index funds, low cost 3 fund portfolio, etc to be very far down on the list of the things that will make you wealthy. It certainly helps but really isn't that important compared to all the other factors listed. As well millionaire studies have shown that you don't need to have low cost investments to succeed. Making more money and saving a little bit more money far exceeds ER differences in funds.

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Watty
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Watty » Mon Jul 22, 2019 8:29 pm

AerialWombat wrote:
Mon Jul 22, 2019 8:20 pm
GerryL wrote:
Mon Jul 22, 2019 4:03 pm

So, essentially, LBYM and PYF.

+1

Do this, and the rest will follow.
What does PYF stand for?

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AerialWombat
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by AerialWombat » Mon Jul 22, 2019 8:31 pm

Watty wrote:
Mon Jul 22, 2019 8:29 pm
AerialWombat wrote:
Mon Jul 22, 2019 8:20 pm
GerryL wrote:
Mon Jul 22, 2019 4:03 pm

So, essentially, LBYM and PYF.

+1

Do this, and the rest will follow.
What does PYF stand for?
Pay Yourself First
“Life doesn’t come with a warranty.” -Michael LeBoeuf

michaeljc70
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by michaeljc70 » Mon Jul 22, 2019 8:34 pm

bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Does my question make sense? Regardless of if you make mistake after mistake financially, if you nail what two or three things, will you still wind up wealthy? Is it as simple as 1. Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?

What are some of your top things to do that will cause you to end up wealthy regardless of all the other smaller financial mistakes in life?
Not much will help you if you don't learn from your mistakes. There are people that have won hundreds of millions of dollars in the lottery and had multi-millionaire dollar contracts (sports/entertaintment) and gone bankrupt.
Last edited by michaeljc70 on Mon Jul 22, 2019 8:39 pm, edited 1 time in total.

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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Sandtrap » Mon Jul 22, 2019 8:35 pm

1. Develop a lifelong love of working, ambition, and personal accomplishment. In this, work never feels like "work".
While so many grumble and rue the day they were put to task, you revel and celebrate.

2. Develop a love of frugality and an abhorrence of waste. Wasted efforts, wasted time, and wasted causes.

3. Find a lifelong spouse who shares and lives #1-2.

4. Personal vitality and ambition. If limit yourself to 40 hrs a week, 2 weeks vacation per year, etc, and will not do more than "show up and do your minimum", then that is all you will get in return. Mediocre efforts = Mediocre results.

5. Courage.


j :D
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by BolderBoy » Mon Jul 22, 2019 9:18 pm

bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?
20% of what amount?

20% of $40k/yr probably won't make you wealthy in the end.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect

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willthrill81
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Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by willthrill81 » Mon Jul 22, 2019 9:24 pm

BolderBoy wrote:
Mon Jul 22, 2019 9:18 pm
bigtex wrote:
Mon Jul 22, 2019 2:31 pm
Save 20% of gross income from day 1 or working? 2. Remain employed so you can continue socking away the 20%?
20% of what amount?

20% of $40k/yr probably won't make you wealthy in the end.
20% of your gross income.

Unless your investment returns are very high and/or you can live on almost nothing for 50 years, you'll never be 'wealthy' with a $40k income. But by saving $8k a year, you can become financially independent over the course of a typical career, and that should be 'wealthy' enough for anyone.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

DJP1944
Posts: 62
Joined: Tue Jan 02, 2018 9:12 pm

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by DJP1944 » Mon Jul 22, 2019 9:28 pm

TropikThunder wrote:
Mon Jul 22, 2019 5:54 pm
These are all sound suggestions, but they’re also the same boilerplate pieces of advice we give anyone regardless of personal situation. I don’t see any of these bits of advice being able to overcome mistake after mistake financially except for having rich ancestors give you a multi-million dollar trust that you can’t misuse. Many people can overcome a mistake or two, especially early in life. If you buy too much house in your 20’s and lose it to foreclosure after job loss, you can recover but not if you do it again in your 30’s and 40’s, run up credit card bills, invest in your cousin’s Ponzi scheme, buy a new BMW every year, let EJ mange your money, etc.

Q: How can I retire comfortably if I keep making financial mistakes?
A: Don’t keep making financial mistakes.
Not very helpful.
X2

Don't make the same mistake twice, and later mistakes are harder to overcome than earlier mistakes...

Pu239
Posts: 150
Joined: Mon Dec 17, 2018 6:24 pm

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Pu239 » Mon Jul 22, 2019 10:40 pm

Assuming you're already on a road that will lead to wealth:
1) If married, stay married.
2) If no kids, have no kids.
3) Stay healthy if underinsured.

Point
Posts: 182
Joined: Mon Jul 10, 2017 9:33 pm

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by Point » Mon Jul 22, 2019 10:46 pm

Multiple sources: defined benefit, 401k, 403b, Roth, SocSec, taxable investments, savings. One of us stayed in public sector: health care.

The idea was one or two could fail and we’d be ok.

scrabbler1
Posts: 2428
Joined: Fri Nov 20, 2009 2:39 pm

Re: What two or three financial things to do to wind up wealthy regardless if you make numerous other financial mistakes

Post by scrabbler1 » Mon Jul 22, 2019 11:10 pm

Be childfree. It is a huge reason as to why I was able to retire 11 years ago at age 45. I can live comfortably on less than $30k a year.

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