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Blogger Interviews, Financial Independence, Interviews, Investing, Retirement

Accidentally Wealthy on Purpose: An Interview with Accidental FIRE

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Man, Business, Adult, Suit, Bitcoin, Cryptocurrency

“We gonna win more. We gonna live more. We the best.” – DJ Khaled

I know what you’re thinking. How do you accidentally get wealthy on purpose. Well guess what? You’re about to find out.

This latest blogger interview comes from Dave of Accidental FIRE.

I reached out to him after seeing his name on like 20,000 blogs.

Here’s how it went down because as you know it goes down in the DM. ๐Ÿคฃ

I sent this tweet out after seeing a post Dave published. I thought it had an inspiring title. So I retweeted it.

To my surprise, Dave responded. ๐Ÿ˜ฎ

So I responded to Dave. ๐Ÿ˜

That’s when he told me to hit him up in the DM! ๐Ÿ˜‰

So yes ladies and gents, this post happened from a tweet!

He seems as passionate about writing and blogging as I do!

I was born for this, born for this It’s who I am, how could I forget? – Macklemore

Let’s get right down to it! It goes down in the DM!!! It goes down. It goes down!!! ๐Ÿ˜‚ Yo Gotti – Down In The DM

The blog and the interview was done by Miriam of Greenbacks Magnet, but those lyrics up top are by Yo Gotti.

INTRODUCING 

Welcome aboard all! All are welcome!

Welcome to Greenbacks Magnet. Home of attracting Greenbacks like Magnets! ๐ŸคฃCan I help you find financial freedom?

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I want to thank you all for coming along this financial journey with me as I study the self-made and do blog interviews. You know, you are all my copilot’s on this magic carpet ride.

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In the illustrious words of #Aladdin Genie, “You ain’t never ever had a friend like meeeee!!!”๐Ÿคฃ

Let’s Meet Dave!!!

I actually met Dave at FinCon. He was positive and had a great attitude. That was the thing I remember about him most. He may not have known it but I thought to myself now there’s someone I would not mind working with. ๐Ÿค”

And here we are today.

Another day, another breath (another breath)
Been chasing dreams, but I never slept (I never slept) – Glorious Macklemore featuring Skylar Grey

I told Dave I thought he was one of the hardest working men in the blog business. I said that because I would go to read a post by a personal finance blogger and he would have already been there and posted the very first comment!

I couldn’t keep up with him! And I work HARD!!!

I remember seeing a comment on one blog post he did and he said, “Oh get out the popcorn. I see an interesting comments section coming on this post.”

Yep, that’s Dave.

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What it felt like to meet Dave at FinCon.

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He’s a genuine guy. ๐Ÿ˜‰

Let’s talk about how Dave caught on financial FIRE!

DAVE STARTS A FINANCIAL FIRE BLOG

GBM: Hey Dave!! You should let me interview you for the blog! 5 questions tops! If it will get this ball rolling. I know you’re busy, but I promise to keep it short and snappy. Scouts honor. ๐Ÿ˜‰

Dave: Hey Miriam, I will have to ponder these and will get back to you, interesting questions ๐Ÿ˜‰ 

What is FIRE? It stands for Financial Independence Retire Early.

There are tons of blogs out there on the topic.

I even wrote a post called How do you play with FIRE?

WHAT IS FIRE?

According to Camp Fire Finance, the elevator pitch for FIRE is this, โ€œWhen your investments generate enough money to cover your annual expenses youโ€™re financially independent (FI). At that point work is optional and you can retire early (RE) if you want to.โ€

Basically, you have more than enough money coming in to stop working. Usually, this requires anywhere from $1 million to $5 million dollars depending on what you want or need to spend to maintain your lifestyle or that of the one you dream of having.

For example, if you decide you want to withdraw at least $80,000 a year, you would need to have a $2-million-dollar portfolio.

This is how I visualize myself on FIRE! ๐Ÿ˜‚๐Ÿ’‹

Jennifer Lawrence in the Hunger Games was serving them eye candy with that dress. It was literally ON FIRE!!!

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To stay on theme, I will pick this image for Dave. ๐Ÿ˜‰

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Let’s get to the interview. ๐Ÿ˜Š

Dave: Hey Miriam, here are my responses.

1. How did you come up with your blog name?

I named my blog Accidental FIRE because I reached FI accidentally – meaning I wasn’t intentionally trying to get to a point where I didn’t have to work anymore.  I just wanted as much of a nest egg as I could get because I come from a background and family that has no money.  So it was about building security in my life.  But when I discovered the 4% etc it then accidentally became about working less too.

Accidental Fire

Good for you! ๐Ÿ‘

It’s great to have goals. I call that a win!

Win, Word, Scrabble, Letters, Wooden

GBM Miriam: Some people may think building a nest egg from the ground up is impossible. I say personal finance is not rocket science. It is about earning, saving, and consistency.


Thanks for keeping it ๐Ÿ’ฏand sharing that.

2. Any favorite finance books? What’s on your nightstand?

My favorite financial book is “The Simple Path To wealth” by JL Collins because it does the best job of boiling the basics down to make a FI path, well, simple.  On my nightstand now are two books “War Letters: Extraordinary Correspondence from American Wars”, and “The Coddling of the American Mind: How Good Intentions and Bad Ideas Are Setting Up a Generation for Failure”.  Also my eyeglasses and a candle.

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Well ok โœŒThat’s some good reading material right there. ๐Ÿ‘

GBM Miriam: I am actually reading The Simple Path to Wealth by JL Collins right now! I guess great minds think alike! ๐Ÿ˜‰

This was me in school. ๐Ÿ˜‚

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Even today, if I’m not reading, I like to exercise. ๐Ÿคฃ I like to keep busy. No idle hands.

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I still read comic books too! My favorite is Red Sonja.

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She Devil with a Sword

Fun Fact: The Marvel comic Red Sonja was turned into a film in 1985 starring one of my favorite self-made people to quote Arnold Schwarzenegger.

โ€œDonโ€™t focus on getting to $1 million; focus on getting to $2 million.โ€ โ€“ Arnold Schwarzenegger

I heard that little gem when Mr. Schwarzenegger was doing a radio interview.

I’ve learned to make every dollar count. Focus on turning every $1 into $2. Instead of $1 million focus on $2 million. I learned that from @Schwarzenegger ๐Ÿ˜‰

Just my 2 cents. Smooches ๐Ÿ’‹

Did this book inspire this post I wonder? ๐Ÿค”

3. What’s the most interesting thing about you that we wouldn’t learn from your resume?

I’m a pretty good juggler.

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Awesome! ๐Ÿ‘That’s pretty cool.

4. What’s in your wallet? How did you start building wealth?


If you mean what kind of credit card I have a US Bank VISA that gives great reward points and that I use for everything.  I started building wealth as soon as I started working when I was 16, I’ve always spent less than I made.  But I started supercharging my wealth-building after reading a copy of Money magazine in 1995 and putting money in index funds.

Nice! ๐Ÿ‘Œ

GBM Miriam: I actually started after reading a Kiplinger magazine around 2007. I also put my money in index funds like the VFINX 500 index with Vanguard, which tracks an index like the S&P 500.

I try to save and invest over 40% of my income.

Although it is now closed to new investors you can put money into the VTSAX which is 80% comprised of the 500 largest companies in the United States.

Your story on how you grew up and got started building wealth reminds me of the song Glorious from Macklemore.

I feel glorious, glorious Got a chance to start again!

I loved it in the Crazy Rich Asians movie trailer.

5. What 80’s film best describes your relationship with money or the lifestyle you would like to have?

I guess I’d pick “Stand By Me” It doesn’t have much to do with money but I love the movie because it reminds me of my childhood – being in a small pack of super close friends and exploring and maybe sometimes getting into thins we shouldn’t have.  And I’m still friends with all those guys today so it’s fun to reminisce about when we were younger and our knees didn’t hurt so much!

I hear you! ๐Ÿ˜‰

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Love that movie! It had some inspiring words. Love the 80’s. ๐Ÿ’–

You know? Dialogue like this. ๐Ÿคฃ

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GBM Miriam: Seriously, though that film makes me tear up at the end every time. A great coming of age story about friendship.

Why we blog about finances?

I’ll let Skylar Grey answer that:

We gon’ be alright, put that on my life
When I open my eyes, hope I see you shine
Now I feel glorious, glorious
I feel glorious, glorious

Well, we have come to the end of this interview. Hope you had fun.

Here at Greenbacks Magnet we like to have fun. And I had a blast!!!

GBM Miriam: Thank you Dave for stopping by!! I sure hope we will see each other again at the next money meets media conference as FinCon19 is coming to DC! But if not, there is always Twitter and DM’s. ๐Ÿ˜‰

I bid you all farewell. Until we meet or tweet again.

I will give you one of my farewell messages that I tweet as a show of my appreciate for you hanging out with me here at Greenbacks Magnet.

Hope you had fun with me today and my Lipstick confessions. I must bid you all a good night. And go back to my regular identity. May the 80s live on forever in our hearts. Smooches๐Ÿ’‹ Greenbacks Magnet

Shows over Synergy. #Jem

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Are you surprised I sent this tweet? Well, don’t be. I told you I loved the 80’s!!!

Hey Dave!!! Thank you. Appreciate that quick turnaround right there!

ACF Dave: thanks Miriam ๐Ÿ‘

Remember how I said I saw Dave on like 20,000 blogs. Well, I guess that is a popular number.

Got 20, 000 deep off in the street like we some warriors
My mama told me never bow your head, woo! – Macklemore

But this time, you can take a bow and bow your head Dave. You were a great guest to have. ๐Ÿ‘๐Ÿ‘๐Ÿ‘

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Want more on purpose money advice from Dave of Accidental FIRE?

Visit his website Accidental FIRE and Follow him on Twitter @Accidental_Fire and

Blogger Interviews, Financial Freedom

A Look Behind the Man and the Mohawk: An Interview with Budgets are Sexy

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Image: Budgets are Sexy

Boys tell stories ’bout the man. Say I never struggled, wasn’t hungry, yeah, I doubt it – Drake, Started From The Bottom

So, who is the man behind the mohawk?

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Well, you’re about to find out.

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Just who he is.

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But first…

A shout out to all things hearts and flowers. Valentine’s Day is coming!

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Valentine’s Day!!!

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Dean: Where am I going?
Sam: Dean, it’s Valentine Day. Your favorite holiday, remember? I mean, what do you always call it – uh, Unattached Drifter Christmas?๐Ÿ˜‚

Q: What did cavemen give their wives on Valentineโ€™s Day?
A: Lots of ughs and kisses.

As you can see, J. Money is all about the love.

And so this joke is for just for you J$.

Q: What did the calculator say to the pencil on Valentineโ€™s Day?
A: You can always count on me.

Okay. All jokes and kidding aside.

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Who are we talking with today about the sorted topic of coin? Blogger extraordinaire J. Money of Budgets Are Sexy

Sometimes I am two people. Johnny is the nice one. Cash causes all the trouble. They fight. – Johnny Cash

Let’s find out the man behind the money and the mohawk?

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Let’s not waste any time. We’re diving right into the interview.

THE INTRODUCTION 

GBM Miriam: It was great meeting the one and only J. Money at FinCon 18 in Orlando. Congrats, on being an 11-time Plutus Award winner for your blog Budgets are Sexy. You can see more about what others are saying about his blog on his press page. The accolades are well-deserved. I even included him on my list of Money advice that 10 Bloggers told me blog post! That’s because J$ does not hold anything back when it comes to talking money.

Imagine my surprise to meet the man I had been following along to and reading his stuff for the past several years.

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He was extremely nice and down-to-earth. One of the friendliest guys I have ever met!!!

He never ceases to amaze me with his sheer enthusiasm for life, unbridled passion for what he does, his unmatched love of talking all things money, and incredible charisma and good vibes is almost like nothing I have ever felt!

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It was so great to meet him. He is just awesome to be around. You can never feel bad around J$. I dare you. He’s just too friendly and cool.

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I had to reach out and ask for an interview.

MEET J. MONEY (J$ FOR SHORT ๐Ÿ˜‰

This is how it feels to meet J$.

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Fun Fact: Both Carl Weathers and Schwarzenegger have starred in films with Sly Stallone. Carl Weathers had famously done Rocky just a few years before he did this film, Predator, with Ah-nuld!

For those who don’t already know the award winning blogger.

Like Jay Z said, “allow me to re-introduce myself.” 

J$ STARTS A SEXY BLOG 

1. What prompted you to start a blog about money? Why are budgets sexy?

I fell in love with the community after searching for tips back in 2007 when I bought a house with no money down and no budget whatsoever (*gasp*). I was entranced by how real and RAW people were online – especially those sharing their net worths! – and after a while I thought I’d jump into the ring myself and have a little fun… Had no idea it would completely change my life, and my finances, over a decade later!

I came up with the “budgets are sexy” concept around the time Justin Timberlake’s “I’m bringing sexy back” song was charting, and thought it went well together since budgets essentially gives you the one thing that we all strive for – confidence. The confidence to know where your money’s been, the confidence to know where you’re money’s going, and then of course the confidence it gives you within just knowing you’re on top of the game! And how sexy is that??

So, you just decided to toss your hat into the ring! Wow. That’s it. Just jump out there. Well, that’s awesome.

You only live once, that’s the motto…YOLO – Drake, The Motto๏ปฟ

I guess you really did take YOLO to heart. โค๐Ÿ‘

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Well, alright! ๐Ÿ‘Œ

GBM Miriam: I read the Financial Diet by Chelsea Fagen and was pleasantly surprised to see you were featured in it!! Congrats!!!

2. Any favorite finance books? How come? 

My top 3 favorites are:

  • “I Will Teach You To Be Rich” by Ramit Sethi (good for action taking and funny as hell)
  • “The Automatic Millionaire” by David Bach (also good for action taking)
  • “The Millionaire Next Door” by Thomas J. Stanley and and William D. Danko. (good for your *mind!*)

I also love “Essentialism” by Greg McKeown, which isn’t a finance book, but more of a lifestyle/career one which heavily influences what I spend my time on, and more importantly – what I don’t.

GBM Miriam: On your blog it states: “A personal finance blog that won’t put you to sleep.” – Benjamin Franklin

Great! Because I liked to be entertained. I don’t want to be put to sleep! I want to talk money and have some fun. They say, give the people what they want.

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I thought that quote on Franklin was pretty funny because I did a blog post on the how the 13 virtues of Benjamin Franklin can make you rich. I am a huge fan of his and that is why I like the Disney film National Treasure so much as it has B. Franklin all over it!

Are you a fan of Ben Franklin?

3. What are you reading right now? What’s on your night stand? 

I’m reading a lot of books on the history of my hometown, which I’m told is even more boring than finances ๐Ÿ˜‰ There’s also a book on Benjamin Franklin that a reader mailed me – “Franklin’s Thrift: The Lost History of an American Virtue” – as he knew I’m a big fan of his habits.

Success is having to worry about every damn thing in the world, except money. – Johnny Cash๏ปฟ

4. One thing people may not know about you?

I have mild O.C.D. as well as A.D.H.D., and I also hate public speaking… which sucks, because you could really grow an empire in this field if you love getting in front of a crowd! Here’s an awesome article I just came across btw for anyone else who suffers from “reading O.C.D.” (It’s a thing!) –> How I Overcame My Reading OCD

Started from the bottom, now we’re here. – Drake

GBM Miriam: I read online that you managed to amass $400,000 in 7 years. That’s no small feat.

I try to think positive. Write down my goals (cause you know, it’s all about the power of the pen). Visualize what I want and say my affirmations to make things come to fruition.

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But what about you? How’d you do it?

5. What’s in your wallet? How did you start building wealth? 

I’m super minimalist with my wallet (it’s actually a money clip), and I only keep a credit card in it, my debit card, and then cold hard cash along with my drivers license. Although now I realize your question is more about my proverbial wallet isn’t it? Haha…

For that I max out all my retirement accounts every year using Vanguard index funds, or more specifically – the VTSAX fund (I keep my investing simple too!). Went from $50,000 to $800,000+ by mainly doing that, along with of course cutting back and finding other avenues of income along the way… 

GBM Miriam: I appreciate that honesty right there. Thanks for keeping it ๐Ÿ’ฏ!!

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Just like the post you did called The Red Wedding of Net Worth Reports : $842,180.92 [Down $60,000! The Worst to Date]

You just put it out there. And that’s awesome. I need all the transparency I can get right now with the Dow Jones base jumping every other week.

I almost started to Birdbox myself like Sandra Bullock and only look at the stock market blindfolded, but then I thought to just go ahead and look at it, as it’s better to just rip a band-aid off.

Alright, it’s time for the bonus round.

My favorite part of every interview here on Greenbacks Magnet!!!

Bonus Questions (pick any of the questions from the top or below that you want to answer) 

7. Whatโ€™s your favorite ’80s and/or โ€™90s jam? What’s on your ipod? Would you let us hook up your โ€˜Recently Playedโ€™ list on Spotify to our office speakers?

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Haha… I love old school rap, mixed in with a little pop and folk music for good measure. You could hook up my iPod Nano if you wanted (remember that one???) but it’s stuck in the 2000’s as I rarely download anything and tend to stick to the radio or vinyl… I love me some Johnny Cash or Chuck Berry action!

Chuck Berry huh? Anyone remember the film Back to the Future?

Well, here is Marty doing a cover of the 1958 Chuck Berry song Johnny B. Goode. Enjoy!

8. What would your autobiography be called? 

“Normal Guy Gets Lucky and Can’t Believe He Writes Down His Thoughts For a Living”

GBM Miriam: I love that title! That’s really funny, but sooooo accurate.

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9. If you found a lottery ticket that ends up winning $2 million. What would you do? 

Pay the taxes on it, spend $10,000 lavishly on friends and family, and then probably bank the rest into Vanguard funds and keep going about my business…

GBM Miriam: Smart move. Pay those taxes.

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In a weird way I actually DON’T wanna win the lottery as I want to see if I can hit financial freedom *on my own*. Not that I’d turn it down if I won, but I’d probably have to stop blogging since everyone would just assume it was the lottery that brought me to this place and write me off, haha… I already feel like I won the lottery anyways as you can tell from my autobiography! ๐Ÿ˜‰

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If you notice we go from 9 to 12, that is because out of 15 (more or less) interview questions, all guests can answer whatever ones interest them the most. Skipping a few questions we move right along.

In the illustrious words of Pauly Shore, “let’s keep on cruisin’.”

12. Do you consider Monopoly to be a game that you play with friends or enemies?

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FRIENDS!! Why would you play it with enemies??? The only real problem with Monopoly is finding people who will actually *finish the game* with you since everyone bails after only like 30 mins!! The worst!!

13. If you could steal credit for any great piece of art, song, film, book etc which one would you claim?

GBM Miriam: Personally, I would want the Campbell Soup Cans by Andy Warhol.

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Painted around 1962, one painting (of the 32 cans he painted, which the canvases are on display at the Modern Museum of Art in New York) went on to fetch a record-breaking amount for an American artist of $11.8 at Christie’s auction house in May 2006. I do love some Campbell’s chicken noodle soup.

Andy Warhol also said, “the goal isn’t to live forever. It is to create something that does.” It is one of the reasons I chose to start a blog.

BAS J$: I’m gonna take the lame way out and say I wouldn’t steal anyone’s as I hate it when my stuff gets copped. Plus — I already suffer from Impostor Syndrome  just being *myself*, so there’s no way I could pull off being someone else even if I wanted to! ๐Ÿ™‚

14. Which animal would make the best type of president if the animal kingdom ever rises up and takes over?

Unicorns? I donโ€™t know anyone who hates them, and we sure do need some magic up in here to fix our world!! ๐Ÿฆ„๐Ÿฆ„๐Ÿฆ„

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Unicorn!!!!!
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15. When it comes to making tea which answer most applies to you?

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a) I am the patron saint of tea, tea for everyone!

b) Iโ€™m not a one man Starbucks. Every man for himself.

c) Iโ€™ve only got two hands- so first come, first served.

D) COFFEE FOR LIFE!

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– J$
http://jmoney.biz

GBM Miriam: As there was only three options, J. Money decided to do a write in answer. As any boss would.

What I should have asked. And figured would be a coffee drinker’s answer.

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Well, that brings us to the end of this interview. This was a fun post and I hope a good time was had by all.

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GBM Miriam: Thank you J. Money for stopping by!! I am sure we will see each other again at the next money meets media conference as FinCon19 is coming to DC! That’s right in our neck of the woods. ๐Ÿ˜‰

BAS J$: thanks again for having me! fun and creative questions ๐Ÿ‘๐Ÿ™

Want more straight forward money advice from Budgets Are Sexy?

Find him on his  website or stalk him on Instagram and connect with him on Twitter at @BudgetsAreSexy 

Financial Freedom, Financial Independence

Financial Independence in 10 years

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Base Jump, Jump, Base Jumper, Leaping

If the goal is to have financial freedom, then it is worth the sacrifice.

I have been reading nonstop about personal finance. It has been a heck of a ride. The roller-coaster of emotions that goes along with it is not so scary when you focus purely on the numbers.

Most experts will say to save 10-20% of your income, but that still means working a 30+ career until being free. I wanted to get off the hamster wheel earlier or at least whenever I wanted instead of when only I could.

I thought wouldnโ€™t it be great to focus on getting out of the rat race sooner. Why not just focus on a certain time period?  I picked 10 years because that is a good chunk of time for most people to get themselves in the head space to understand that discipline is in order to achieve this lofty goal.

I just narrowed down my focus to only looking for information pertaining to how to become FI in a decade.

Here is what I found along the way.

THINK 10

They say to think big. So, I say think 10.

I began to look for information on being financially free.

For instance, saving 50% of your income and getting a return of 5% or more could net you over $500,000 and allow you to become FI in 15 years. Not bad.

If your living expenses are under $40k a year, then you can make that work for you. Therefore, the more you spend, then the more you have to save. It is just that simple.

Saving 65% of your income with a return of 7% or more could net you over $600,000 and allow you to become FI in about 11 years.

Even better, saving 70% your income with a return of 7% or more could net you over $700,000 and allow you to become FI in less than 10 years. Yahtzee!

I found a savings rate early retirement chart on Clark Howardโ€™s website. He generally decreased the number of working years by four once you hit a 40% savings rate.

TAKE YEARS OFF THE RETIREMENT SCHEDULE

After, I did my research, I also found the following:

  • By saving 60% of your income, you can take 1 year and 6 months off every time you work 1 year.
  • By saving 70% of your income, you can take 2 years and 4 months off every time you work 1 year.
  • By saving 80% of your income, you can take 4 years off every time you work 1 year.
  • By saving 90% of your income, you can take 9 years off every time you work 1 year.

This is what Jacob Lund Fisker details in his book Early Retirement Extreme.

Saving a high percentage of your income is literally allowing you to sock away years of retirement income at a faster rate.

That would mean based on the above statements, the following:

  • Saving 60% of your income for 7 years, allows you to knock 11.2 years off your retirement schedule.
  • Saving 70% of your income for 7 years, allows you to knock 16.8 years off your retirement schedule.
  • Saving 80% of your income for 7 years, allows you to knock 28.7 years off your retirement schedule.

This would mean retiring in your 30s or 40s as opposed to your 50s or 60s. However, working is relative. If you truly have something that you enjoy doing, then it is not an issue. FI is about finding work or activities that you want to do without having to worry about punching a clock and getting paid.

WHAT IS FI?

It is the ability to make work optional.

Your assets are now generating enough cash flow for you to exit stage left out of the workforce.

I found this great chart that defines it eloquently.

Freedom vs independence

Image credit: doubledebtsinglewoman.com

HOW AND WHERE TO SAVE

Unfortunately, it is not enough just to save, but to have a target.

Most reading I have done on FI includes putting money in index funds, taxable accounts, savings, checking, and money market accounts,

For example, J.P. Livingston of TheMoneyHabit says she was saving about 70% of her income and then split that up into different categories.

Of that 70% of her income, she put 60% in savings and the remaining 40% into investing.

A place like the Vanguard Total Stock Market Index Fund (VTSMX) or EFT (VTI) should work for you just fine.

All this means that you must not only invest, but put a high portion of your income aside to actually be able to hit the eject button on your job. After all, you need income to live off of and investments typically come with rules like you are unable to withdraw any funds before age 55 to 59 ยฝ.

I continually read about those that have retired early and reached financial independence. The common denominator is this: savings.

What can I tweak? How can I do better? I always strive for abundance. After I achieve one goal, then I make a new goal.

Once I got serious, I started socking away 41% of my income. My next move was to get to 50% of my income and eventually work my way up to a 75% savings rate.

I have also noticed that high yield savings accounts rates have gone up recently. There are accounts now paying over 2% interest. Thatโ€™s right. You can earn 2% just for parking your money. The more you save; the more you earn. That is the same amount some people are receiving in annual raises and cost of living increases!

Do not let anyone tell you that this is not possible. Forget the naysayers. There is a saying that the elephant keeps walking as the dogs keep barking. Do not let fear, others opinions, or lack of effort keep you from reaching your goals.

You are the MVP on your Financial Freedom team. Go for the goal. Always.  

There is no better goal than being free.

Entrepreneurship, Financial Freedom, Financial Independence, Investing, Self-Made Millionaires, Wealth

How Benjamin Franklin used 13 virtues to get rich

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“Tell me and I forget.ย Teach meย and I remember. Involve me and I learn.” –ย Benjamin Franklinย 

Benjamin Franklin is not only one of Americaโ€™s founding fathers (known as one of the signatories the Declaration of Independence), but also its first millionaire.

He did this by investing in what he knew. That is how he built his fortune.

You can do the same to build yours.

I listen to what people have to say, but I always make my own decisions.

I research any industry I want to know and then focus on investing in what I know. I try to put my money where my values are.

I prefer consumer staples such as food, beverage, toothpaste, cleaning supplies, tissue, and other household items.

Companies like Proctor & Gamble, Colgate-Palmolive, Kimberly-Clark. Clorox, and PepsiCo.

You can find many of these companies included in many mutual funds such as any 500 index fund like the Standard & Poor’s 500 Index (S&P 500 index), the Vanguard 500 Index Fund Investor Shares (VFINX), the Fidelity Spartan 500 Index Investor Shares (FUSEX), the Schwab S&P 500 Index Fund (SWPPX) or the ย ย T. Rowe Price Equity Index 500 Fund (PREIX).

I figured a good way to start my wealth journey was to learn about those that became wealthy.

Benjamin Franklin also created a list of 13 virtues to develop his character. This lets me know that your character is your destiny.

Here I provide you with his checklist. See which ones you can try to emulate to help you on your road to wealth accumulation.

THE 13 VIRTUES OF BENJAMIN FRANKLIN

In 1758, Benjamin Franklin published his essay The Way to Wealth.

Although, it was written 260 years ago, the advice still is holds up, even to this day.

Below is a copy of his checklist.

SPOTLIGHT ON FRUGALITY

My personal favorite is frugality because it includes all the other virtues.

Frugality is basically the will to spend money on what is important and avoiding spending on what is not.

Frugal is not being merely cheap or miserly like Ebenezer Scrooge. ย See my post on Money Lessons I Learned from Scrooge McDuck. It is about saving money on things you do not really need.

Saving money allows you to put that money to work for you.

Imagine every dollar is a little soldier. What do soldiers do? They fight.

You have to fight for your money because everyone is trying to part it from you. Donโ€™t let them.

Invest that money and each dollar (soldier) fights for you everyday 365/24/7. Even while you sleep.

FOCUS ON FRUGALITY

In this world, youโ€™re on your own. Benjamin Franklin knew that. So, he set out to start a business in a field he knew. He was a printing apprentice and started a printing shop. He became an expert at that one thing and did it so well that people paid him for it.

He then reinvested the profits back into his business.

That is how he grew rich.

He knew to become wealthy, he had to ignore the charlatans or hype. He had to focus on himself and his spending habits.

And that is what you must do. Ignore the hype. Forget what everyone else says or thinks. Trust your gut.

FORGET THE FANCY SET OF WHEELS

You do not need a fancy car to make you happy. Ride a bike and get some exercise. Better yet, buy an inexpensive, older Chevy where the bumper looks like it will fall off any second.

Then people will be less likely to ask you for money, if they see you riding around in a clunker because they will think your broke, but it couldnโ€™t be further from the truth.

Itโ€™s not that you do not like nice cars or canโ€™t necessarily afford one. Itโ€™s that you choose not to spend your money on it. Sounds pretty good right?

And watch out for the hangers on. They tend to come around when your last name is followed by an M.D. or Esquire.

FORGET THE BIG HOUSE

You do not need a mansion to live in. You know what that does? It just causes you to spend more money to heat, cool, maintain, and furnish it.

You fill the home up with stuff. No one likes an empty corner. Every inch is piled high with stuff.

How is that stuff paid for? Usually with credit.

What happens if you need that money? For instance, homes need maintenance.

Do you know what the repair bill is for a roof on a mansion? Well, you donโ€™t want to know. One thing we do know for sure is that it costs more than what you would spend on a smaller house.

What about PMI? Private mortgage insurance is what you must pay if you put down less than a 20% down payment. And folks, that money is on top of the insurance and a monthly mortgage payment. We arenโ€™t talking chicken feed here. It can be hundreds of dollars per month!

What about property taxes? It can add hundreds or thousands to a monthly mortgage payment. Thatโ€™s money thatโ€™s not working for you in the bank.

You want to be investment rich, not house poor.

Every dollar that goes toward the house, canโ€™t be working for you in an investment account.

I know they say the value of the home will go up and your equity will increase as you are making the house payments. However, letโ€™s not forget the 2008 housing bubble.

When that bubble burst, so did most folks equity. Foreclosure notices were going out in the mail all over the country. Many lost homes. And many have still not recovered.

FORGET THE DESIGNER CLOTHES

You know those people who say dress to impress. Well, thatโ€™s fine and dandy, if you can afford it. However, if you canโ€™t swing it, then walk by the $400 clothing rack and head to the sales rack in the back. Forget sartorial superiority. Who wants to be the best-dressed poor person?

I now see more people walking around with designer purses today than I have seen at any other time I can remember. Whoโ€™s paying for it? Mr. credit card, thatโ€™s who.

I see people opening up store cards all the time.

They have so many different color credit cards in their wallet it looks like a skittles bag exploded.

Places are handing out applications for credit cards every, single day.

You must resist. Resist the urge to spend. Credit is seductive. The temptation is too great.

So you must decide, what is more important. Buying a designerโ€™s clothing and paying for their summer home or funding your own future.

FORGET THE EXPENSIVE WATCHES AND JEWELRY

I read about an NBA player who had bought dozens of watches. And not just any watches, but Rolexes!

Just because. Well, hey, you know bosses got to be on time.

Do you know what those things retail for? Well, last time I checked, it could be anywhere from $2500 to $40,000 and up.

The guy could have started a college fund. He could have funded an entire small city of kids $1k college scholarships.

Who needs 30 watches? Someone who wants to know the exact moment they went bankrupt I guess.

FORGET THE EXOTIC VACATIONS

So you want to travel. Thatโ€™s great. But unless you can afford it or do it on someone elseโ€™s dime (like for work).

You may just have to watch the latest episodes of House Hunter or any show on the travel channel.

I once read it is a great thing to go travel and see the world as it is a great education, it will only cost you: $25,000.

I think Iโ€™ll just read a good book on world travels instead and invest that money until it earns enough interest that I can pay for the trip with cash.

Here are some of my suggestions on traveling when your travel budget is on life support.

You want to see the northern lights in Iceland? See it on a YouTube video.

You want to go skiing in Switzerland, Aspen, France or Vail? Watch a travel show until you can afford it.

You want shopping sprees in Milan, Paris, Rome, New Yorkโ€™s Fifth Ave, or Rodeo Drive? ย Focus on buying things that will appreciate in value. Clothes, once purchased, is money thatโ€™s burnt.

I know you watch the television shows and see all the families going to Disneyland or Hawaii. However, what they donโ€™t tell you is how much it costs to go to these places. Lots of times the studio or the network is picking up the tab.

They do it for ratings. Because who wants to watch a show about people sitting on couches all day. They want to see the lifestyles of the rich not the broke and unknown. I say just stop watching those shows.

Focus your attention on earning and working. If your head is down working, you never can look up and notice what everyone else around you are doing.

FORGET FOMO (fear of missing out). Itโ€™s a myth.

I know plenty of people that go out, spend money, buy nice cars, big homes, fly to the islands, and go to lots of parties.

However, they are not the boss. They work a 9-to-5 just like everybody else. One missed check could cause havoc on their already precarious finances.

Many people are one paycheck away from being on the sidewalk.

Donโ€™t be like them.

Practice the 13 virtues. Be frugal. Then you can live like no one else because you will actually be rich instead of acting like you are.

FORGET PRETENDING TO HAVE MONEY

Forget pretending to be rich. The only time bluffing works when it comes to money is at the poker table.

And you know what happens when the hand is over, the bluffing stops there.

So leave the bluffing at the table and check it at the door.

Remember that scene in the comedy movie Back to School with Rodney Dangerfield. He was a wealthy guy named Thornton Melon, but always said to his son: A man without an education is nothing.

There was one scene in the film where he was talking in class about being in business and all the things a businessman is doing to make it in the real-world.

The teacher disagrees with his assessment, even though he was coming from a place of information.

When the professor asks where to build the business after scolding Melon he replies, โ€œHow about fantasyland.โ€

When it comes to your money you cannot afford to live in a fantasy. You have to keep your feet planted firmly on the ground and your actions based in reality.

Earn money, save it, invest it, and get rich slow.