Eleven years after high school, I finally graduated with a bachelor’s degree in finance. This brings up a mixture of thoughts and emotions for me, most notably excitement. So much time for activities!
Graduation
Spending Less (Pt. II)
This post is part two of a series that is meant to serve as a quickstart guide to finances I am calling Spending Less. My goal is to post it as quickly as possible to hopefully begin helping people, so I may revise it after initial publication.
Continue reading “Spending Less (Pt. II)”Spending Less (Pt. I)
This post is part one of a series that is meant to serve as a quickstart guide to finances I am calling Spending Less. My goal is to post it as quickly as possible to hopefully begin helping people, so I may revise it after initial publication.
Welcome!
As this is the inaugural post on this blog, I feel an introduction of sorts is in order.
Why are you writing things?
Great question! I thought you’d never ask. In my short time here on this planet, I’ve managed to acquire what I feel to be a decent understanding of money and how it works. This is mostly a result of meeting my soulmate, which converted me from thinking almost entirely in the short term to thinking very much in the long term.
As I’ve grown and learned, one fact, in particular, has struck me as odd: people just don’t seem to understand money very well! In fact, not only do most people I know not understand money very well, they have a relationship with money that is largely emotional and inherited from their parents.
This is far from ideal, as money doesn’t operate by the rules of emotion. This seems to largely be true for people whether they are younger than me, in my own generation, or far older. For example, most of the people I work with are much older than me, but it appears pretty rare to find individuals who have a solid understanding of and relationship with money. In fact, many of them, despite their age, seem not to have even considered the question of how much they need to retire, whether or not they are on track, and how long it might take.
Let’s look at some (not so) pretty pictures:
Considering that it requires approximately a million dollars to safely support only $40,000 in annual spending at a 4% withdrawal rate and that a savings rate of even 5% will take ~66 years to reach retirement, stating that we are in bad shape is a bit of an understatement.
This blog will serve as my way of trying to help educate my brothers and sisters in humanity in the hope that you can lead a happier, freer life. Not that money will make you happy (it won’t) or free (it won’t), but it can certainly serve as a trap if you don’t understand it or if used properly as the tool it is, a springboard into greater happiness and freedom.
Why should we care/listen to you?
Well, I have this degree in monies… Just kidding! They don’t do a very good job of teaching this stuff in school if my experience or the apparent level of financial education and literacy of the general populace serve as any guide.
Over the last several years, I have poured through blogs, read books, run numbers, modeled things in Excel, and generally done a lot of things (research) that you probably wouldn’t find as entertaining as I did. Along the way, I’ve learned some lessons, both from things I’ve done right and even more from the many, many things I’ve done wrong.
I have also been able to save a larger portion of my income than most of my friends would have thought possible, which, in only a few short years, has resulted in a nest egg that rivals that of some who have been saving for decades. Our time horizon for retirement/financial independence is much closer than many who make much more than we do. I don’t share this to brag, but simply to try to open your mind to the possibility that financial independence, retirement, and your goals may be far closer than you thought possible if only you are willing to entertain a few shifts in perspective.
My hope in this offering to you is that you will be able to avoid some of the pitfalls that I and others have fallen into and glean some of the wisdom and knowledge I’ve been able to acquire without having to go through everything I have. If I’m successful, my hope is that you will spend less time worrying about, working for, or generally having to deal with money so that you can focus on what’s truly important: living and enjoying your life, whatever that might mean to you.
Who are you writing this for?
You! The fact that you’ve come across this work probably means you don’t already feel that you have it all figured out in terms of money (whatever that means). I sincerely hope you glean at least something of value from our time together (even if it’s just some bad humor)!
In Love,
(Your) Wallet
