Love may be blind but life isn’t! Long term domestic partnerships are not the garden path of roses leading to a velvety beach that romantic novels, movies and dating websites want you to believe. As a married man for over 12 years, and also, raising a kid together, I think I have earned the right to comment about domestic partnerships. 🙂 This post is about a topic that any person with a ‘significant other’ must confront at some point on their journey towards financial independence.
“Life is like a box of chocolates, you never know what’cha gonna get.” Thus declared the famous Forrest Gump, in a rare glimpse of his philosophical mettle way beyond his portrayed capabilities in the film. That quote resonated for me recently when I was speaking with my 10-year old kid for his ‘sub par’ performance in his exams recently.
It’s no surprise your job feels like a prison after reading many personal finance blogs. It has become a rite of passage for many early retirement (ER) bloggers to declare their freedom from the ‘chains’ of corporate life. After all, being free from what 99% of the world’s salaried class are doing every day certainly gives an early retiree the bragging rights. At times, the financially independent ER bloggers seem like the real 1% as we remain part of the 99%.
If you are well aware of the retirement crisis in the first world or worried about your own retirement, then you have come to the right place. In an earlier post, we saw how a simple decision to rent, while giving you the opportunity to be globally mobile, can help accelerate your journey towards financial independence. Once you learn to move and thrive in your new role for work in a new place, you will not worry about doing the same in retirement to enjoy a higher quality of life.
Let’s face it. Americans, and for that matter, most of the western world, are ill-prepared for their retirement. Reading ER blogs and personal finance websites will not give you the real picture as the authors and commentators are a progressive bunch who, collectively, are better off financially than others. The real truth, of course, is scary. In this post, I analyze two charts from a well-researched American study to explain what this means to you and why you should care.
The 19th century mathematician Carl Gustav Jacobi is attributed to have said “Invert, Always Invert!”. His words never had it so good until recently. His name and work might have forever remained within the cocoon of academic mathematics if not for his quote made famous in recent times by Charlie Munger. The modern life application of Jacobi’s urging covers all forms of societal, economic and even personal issues where the concept of inversion can be useful. The concept can be applied at a global level or at an individual level. For example, the question “How do we increase our country’s exports?” can be inverted as “What are all the ways by which we can reduce our exports?”.
In the pursuit of financial independence (FI), you will have to deal with frugality. Frugality, like many things in life, is relative. I always find it curious to read how someone can live under $10,000 a year or under $15,000 a year with family (in a developed country. This qualifier is important because these figures are a comfortable middle class income in many developing countries). I read such articles more to understand the full extent of human ability to shrink their expense footprint beyond what many consider as feasible.
One of the common themes among self-improvement seminars, self-help gurus and life coach experts is this idea that you are limiting yourself by working in a job and that you must own your own business. The clarion call for entrepreneurship is tempting indeed. One well-known blogger has built a thriving business telling others to create their own business and not to be the ‘slave’ by working in a job. Personal development is critical for everyone, but do you have to start a business to develop yourself?
Elections are an exciting time in a democracy – campaign rallies, conventions, debates, allegations, mud-slinging and fund-raising. The end objective is to earn the investment (vote) of as many citizens as possible. Amidst all the hoopla, one only hopes that truth and fair process get a chance to influence voters on the best candidate to lead the country. This Presidential election season in U.S. has moved up the excitement scale, mainly due to the polar opposite candidates fielded by both major parties.
Folks, you have all heard this before. “If you don’t indulge in that Starbucks coffee every day and invest the savings, you will get rich” or something like that. I have heard this story far too many times from far too many ‘experts’. It has even found a place in some bestseller books that sold a million copies! Time to put this overused latte story to test. Let’s compare the latte math with the real math @ TFR.