Extreme Frugality vs. Relative Frugality

Extreme Frugality Is For The Birds

Gen Y Finance Guy Words To Live By 22 Comments

It’s no secret that this blog has nothing to do with extreme frugality. If anything, compared to my peer bloggers, I’m probably categorized as a spendthrift. I have even been accused of leading a rather lavish lifestyle, which I think is complete bollocks. Relative to my income I am “frugal” but that is not because I have crafted some master plan to live on as little money as possible. Instead, I have chosen to take the road less traveled to increase our household’s top line (income) to a point where saving 50% happens automatically, rather than obsessing over every little expense. I think that extreme frugality is for the birds! As I wrote in this post, there is a natural floor when it …

Don't forget to Build a Life

Don’t Get So Consumed Building Wealth That You Forget To Build A Life

Gen Y Finance Guy Words To Live By 12 Comments

I was recently crafting an interview post for the great and magnificent Physician on Fire, when I was reminded of a core belief that I had lost sight of recently. It’s crucial that everyone in pursuit of Financial Freedom pause and reflect on the following: Don’t get so consumed building wealth that you forget to build a life. It’s so easy to get caught up in the pursuit of a better tomorrow that we forget to live in the present. None of us are even guaranteed a tomorrow. Life could be gone in an instant and that’s very sobering to realize. That doesn’t mean I want you to go out there and live as if you will die tomorrow, I’m …

Rags to Riches

From Welfare to Well-Off: My Rags to Riches Story (in the Making)

Gen Y Finance Guy Words To Live By 26 Comments

After two and a half years of writing this blog, I’m finally ready to share my back story with my readers. Some might find it hard to believe that I grew up on welfare to drug addicted parents. To be honest, from my current vantage point, that life seems like just a dream. The following was originally published as a guest post over at Financial Samurai about two years ago. After reading some posts between Rich and his cousin Penny, I was reminded of my own past and inspired to share my story.  They say the best time to plant a tree is 20 years ago. You know when the second best time is? TODAY! As you are about to discover, …

Focus

FOCUS: Follow One Course Until Success

Gen Y Finance Guy Words To Live By

Do you find yourself getting distracted from the core of what you set out to accomplish this year? If so, it’s an appropriate time to remind you to FOCUS and to recite what this acronym stands for: Follow One Course Until Success It’s natural to get off course. If you think about it, a space craft headed to the moon is only on course 1% of the time. The remaining 99% of the time it is actually course-correcting, buffeted off a straight trajectory by unforseen factors and occurrences, redirecting itself back on track to its destination. The important thing is that the space craft has the right systems and disciplines in place to redirect back towards the goal when it gets off course. Like the space …

Saving Life with Life Savings

Using Life Savings To Save A Life – A Financial Decision Made From The Heart

Gen Y Finance Guy Words To Live By 57 Comments

Today we are going to deviate from the normal finance content that I usually publish. Don’t worry this story will still have a financial decision that had to be made, but instead of being optimized by the brain, it was  instinctively made by the heart. Remember this sites mission is: “To Humanize Finance, Build Wealth, and Reach Financial Freedom” This means sometimes we have to skip all the rational math and go deep on something that is extremely EMOTIONAL and HUMAN. Many of you on my email list have received a good back story of where I come from. Others that have found me through other blogs know more about me than some of my closest friends. But then, there are plenty of you …

Book Wish List 2016

12 Books for Your Christmas List This Year

Gen Y Finance Guy Words To Live By 19 Comments

I wasn’t and avid reader growing up, in fact I really didn’t start reading (voluntarily) until 2011 (I was 25 then). Now I read 40-50 books a year and spend about $1,000 every year on books (I actually just paid $1,000 for ONE book, but we will save that for another post). I’m currently working to put together a new resource for you guys, it will be a detailed reading list by category that currently contains the 230 books I have read over the past 5 years. Buying books is one of the best investments you can make! Jim Rohn said that “if you want more, then you must become more,” and one way to do that is to fill you mind with new …

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 …

Buy Into Weakness – Investment Rule #1

Gen Y Finance Guy Financial Markets, Investing, New Rules, Options, Words To Live By 24 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%. (Note: …

The Slight Edge

Gen Y Finance Guy Words To Live By 4 Comments

The Slight Edge is by far the best book I have ever read (so good that I just read it for the 5th time). It literally is the handbook to success regardless of the endeavor. It is a philosophy that has and will stand the test of time. This is the “Holy Grail,” if there ever was such a thing. Below is a diagram that Jeff Olson, the author, created that beautifully captures the entire philosophy. The Slight Edge is about leveraging the power of compound effort. It works in finance just as well as it works in fitness or relationships or business. The Slight Edge works for you when you practice simple disciplines consistently over time. And it works against you when …

The True Financial Death!

Gen Y Finance Guy Financial Freedom, Words To Live By 2 Comments

Do the thing, get the power. – Ralph Waldo Emerson It’s the day after Christmas and I find myself at a Starbucks at about 5:45am, while my wife and family are still sleeping for another couple of hours. We are just passing through for the night on our way to Bryce National Park. I was absolutely amazed how many people were here on Christmas night when we were checking into our rooms. So many people sucked into the casino to gamble away their hard earned dollars in hope of that big payday. Little do many of these people know,  the payday that they are hoping for will never arrive. I long ago realized that the casinos are in this business …