Financial Independence Lens

Looking at Savings Rate through the Financial Independence Lens

Gen Y Finance Guy Financial Analysis, Financial Freedom 22 Comments

In previous posts I have talked about how we currently strive to save 50% of our after tax income and how important your savings rate is in building wealth rapidly. But after listening to the Radical Personal Finance Podcast, it made me realize that this may have not been enough to sway you. What I mean, is that this may need to be translated. It is very easy to conceptualize and visualize what a 50% savings rate means to in terms of dollars. But what does it mean in terms of Time Freedom? What may not be as intuitive is what it means for your ability to reach financial independence. I had already previously internalized the fact that a 50% …

Savings Rate vs. Compound Rate

Savings Rate – The Most Important Variable to Wealth Building, With the Math to Prove it

Gen Y Finance Guy Financial Analysis, Financial Freedom 38 Comments

When it comes to wealth building, there are many variables to consider: the power of compounding is amazing, but it takes a long time to realize its true power. Income earning is certainly important, and so is its sister, annual income growth. Taxes paid matter. Time in the market is important, too, of course. Investment returns, which are the glittery objects that many people focus lots of energy on, do matter, despite the fact that you have absolutely no control over them. And then there’s how much you save. But which variable matters most? As I have stated in my monthly financial reports many times, it’s the rate of savings that doesn’t get the attention it deserves. This is especially true in …

Goal Setting

The Power of Tracking & Setting Goals – My 2016 Financial Goals

Gen Y Finance Guy Financial Freedom, Goal Setting 35 Comments

I would like to say that I have always been a goal oriented person, but that would not be the truth. Although I have been AMBITIOUS for as long as I can remember, I haven’t always given myself a clear path to success. It wasn’t until I read the Slight Edge for the first time in 2011, that I became OBSESSED with SETTING GOALS and ACHIEVING them. It’s pretty amazing what you can accomplish when you actually set SPECIFIC and MEASURABLE goals. As humans, we tend to overestimate what we can do in a day or a week. But we also tend to under estimate what can be accomplished in a month, quarter, or year. Writing (or typing) out your goals and then reviewing them on …

I wanna be a millionaire

How To Become a Millionaire – Joining the Double Comma Club

Gen Y Finance Guy Financial Freedom 27 Comments

They call it the double comma club and membership is open to anyone. Well, it’s open to anyone that is willing to practice simple disciplines of saving, investing, and living below their means. Let me clarify that when I say “living below their means”, I am not saying you have to live like a college student, instead you simply need to spend less than you earn and invest the difference. Ideally you should be saving and investing at least 20% of your income (although I recommend saving 50% as you build your income). J. Money over at Budgets are Sexy has started “The Million Dollar Club” for anyone who desires to become a millionaire can join. It started out of his own desire …

Freedom Fighter Interview

[Guest Post] Freedom Fighter Interview #2 – Steve of Think, Save, Retire

Gen Y Finance Guy Financial Freedom, Freedom Fighter 14 Comments

Today we have the 2nd of a series of interviews. During this series we will be show casing other Freedom Fighters from around the world. I am excited to introduce you to our second guest, Steve from Think, Save, Retire. Read Steve’s awesome story below. And if you would like to be featured in the Freedom Fighter interview series then be sure to check out the Guest Posting page for more information (it’s open to anyone that is willing to share their fight for freedom: Time Freedom, Location Freedom, and Financial Freedom). Now I will turn it over to Steve… 1. Who are you and what do you do? What is your story? How are you fighting for your Freedom? My name …

Sell Into Strength - Investment Rule #2

Sell Into Strength – Investment Rule #2

Gen Y Finance Guy Financial Freedom, Financial Markets, New Rules, Options, Words To Live By 6 Comments

Over the course of the coming weeks and months I will be laying out the investment rules that I live and die by. These are rules that I have developed over the last ten years as both a retail and professional investor and trader: Rule # 1: Buy into weakness. Rule #2: Sell into strength. Rule #3: Reduce cost basis. Rule #4: Keep investments small. Rule #5: Keep 80% of total invested capital in ETF’s and up to 20% in individual names. Rule #6: Choose duration over direction. Rule #7: Manage your winners. Rule #8: Manage risk at order entry. Rule #9: Increase your # of occurrences. Rule #10: Make investments with a probability of profit > than 50%. Selling …

Yolo

[Guest Post] Freedom Fighter Interview #1 – Brandon Clay

Gen Y Finance Guy Financial Freedom, Freedom Fighter 16 Comments

Today we start the first of a series of interviews. During this series we will be show casing other Freedom Fighters from around the world. I am excited to introduce you to our first guest, Brandon Clay from Trading Story. Read Brandon’s awesome story below. And if you would like to be featured in the Freedom Fighter interview series then be sure to check out the Guest Posting page for more information (it’s open to anyone that is willing to share their fight for freedom: Time Freedom, Location Freedom, and Financial Freedom). Now I will turn it over to Brandon… Freedom Fighting as a Podcaster My name is Brandon Clay. And I am a Freedom Fighter. Sometimes it takes someone …

Net Worth

Increasing Your Net Worth And The Role Of Income

Gen Y Finance Guy Financial Freedom, Net Worth 21 Comments

There was a time in the not too distant past that my entire focus was on growing my income.  These days I am more and more focused on building my net worth, which in theory should build my income (or at least my future income). I have read in many personal finance books and blogs that it is net worth that matters more than anything, especially since the government taxes you on your income and not your net worth. In 2015 I plan to increase my net worth by about $69,000 before any appreciation from real estate, stocks, options, dividends, and interest income: Max out my 401K with the new 2015 limit of $18,000 (picking up an extra $500 this year) …

Everyone Has a Number – Mine is $10M. What’s Yours?

Gen Y Finance Guy Financial Freedom 68 Comments

“Most people fail in life not because they aim too high and miss, but because they aim too low and hit.”― Les Brown Many of you reading this found me through my guest posts over at Financial Samurai and 1500 days. Ever since those posts went live, I have been getting a lot of questions about my $10,000,000 net worth goal. Some people think I am nuts and question if I really need that much money. But even more than that, they want to know how I plan to get there by the time I am 48. I have a tendency to set goals and then work backwards, or “reverse engineer.” When I set that goal I had no idea how I was …

January 2015 – Detailed Financial Report #1

Gen Y Finance Guy Financial Freedom, Monthly Financial Reports 57 Comments

Last week I announced after I created the new Financial Stats page that I would also be publishing a detailed financial report on a monthly basis. In these monthly reports the plan is to give you all a month over month update on Gross Income, Assets, Liabilities, Net Worth. There is also a detailed break-down on Expenses, Investment Contributions, and progress towards my mortgage pay down goal. One more note before we get into the financial report for January. I just want to point out that I am publishing this report at 8:22 am on 1/31/15, and as you can imagine we could spend a few more dollars today. However, I was so excited and anxious to get my first report out that …