In this episode we discussed the following:
- F.I.R.E = Financial Independence Retire Early: A movement where individuals are extreme savers and investors, which allows them to retire earlier than traditional retirement plans would allow.
- 30,000 days is an important number. It signifies how many days we live (on average). After sleep and work, we are usually left with little time to ourselves doing what we want. FIRE allows us to buy back our time as we have built up an investment portfolio that pays for our lifestyle. Just because you hit Financial Independence (FI), does not mean you must retire, it just means you have choices to do what you want (e.g. take a year out to travel the world like you always wanted to).
- During a 30 year professional career, Financial Father has seen a manner of different investment products and schemes that are supposedly designed to work in his favour. This was not always the case. Sometimes unwise financial decisions resulted in poor performance, even money back if he was lucky, or worse, ending up in smoke!
- After many years of working and learning about investing, he realises which investment asset classes work and which vehicles worked best, namely property rentals and the stock market through index funds. So for Joe Public or Mr Average member of the Public, they only need to focus on a savings habit, building an emergency fund, making regular monthly contributions to index funds, then stay the course. The wealth will build over time. One day, the financial resources will build up to a level that will support your living expenses.
- There are loads of books written on personal finance. Books we like to help get started on a personal finance journey include, for example, A Simple Path to Wealth by JL Collins, Unshakable by Tony Robbins, Millionaire Teacher by Andrew Hallum and Millionaire Next Door by Thomas.J.Stanley.
The best time to start investing was yesterday...failing that today is better than tomorrow.
Full show notes for this episode can be found here.
Twitter: @FinancialSon
Email: financialfatherandson@gmail.com
