Hi Money Minder,
This morning, I tuned into the latest “I Will Teach You to be Rich” podcast. The couple on it mentioned binge-watching Suze Orman for nine years before discovering the FIRE (Financial Independence, Retire Early) community, which got me thinking about my own journey with money experts. Here’s my story, and I’d love to hear if anyone else has had a similar experience or found a money philosophy that works for them and stuck with it.
Ages 21-25: Recent college grad, just got hitched, carrying around $80k in student loan debt. Gurus: Dave Ramsey, Elizabeth Warren.
Honestly, I can’t remember how I stumbled upon Dave Ramsey, but back then, I was all about taking walks to the local library with my dog. I picked up “Total Money Makeover” and “Financial Peace” and dove right in. These books were my crash course on dealing with high-interest debt and the basics of compound interest. I also read “All Your Worth” and “The Two-Income Trap” by Elizabeth Warren, learning to live within my means. Another one I picked up was “Generation Debt” by Anya Kamentez, which motivated me to kick our student loans to the curb ASAP.
Ages 26-31: Started our careers, paid off student loans, and bought a house. Guru: Mr. Money Mustache.
After my hubby finished college, we moved and found out about FIRE from new friends. I got into making Google spreadsheets to track retirement and net worth, and those old sheets are still in use! I was super active in the MMM (Mr. Money Mustache) forums and saved every penny. By the time I was 28, we were debt-free except for our mortgage, thanks to the lessons from Dave Ramsey. I also read JL Collins’ “Simple Path to Wealth” and a few others like “Your Money or Your Life” and “Rich Dad, Poor Dad,” but they didn’t leave much of an impression on me.
Ages 32-35: Got into the “boring middle” phase, then hello pandemic. Guru: Bigger Pockets.
Our careers were cruising, and I wanted a new challenge. I got hooked on Bigger Pockets podcasts and devoured “How to Invest in Real Estate” and “Buy, Rehab, Rent, Refinance, Repeat.” The pandemic made my husband’s job a nightmare, so we moved to a place where we could buy and flip houses. Our timing was perfect for buying and renovating before prices went nuts. We decided to find our dream home instead of the next flip, and we snagged a vintage farmhouse on some land. Now, we owe $220k at 3.25% on a property worth $400k, which feels like a win.
Ages 36+: Tired of the grind, just want to enjoy life. Gurus: Ramit Sethi, Paula Pant.
Since we stopped flipping houses, my husband found a relaxed job with health insurance and retirement benefits, while I work remotely for a company I plan to retire from. We’re aiming to retire when his pension kicks in, in about 17 years. We’re “Coasting on Financial Independence,” maxing out retirement accounts each year. We sold our rental (being a landlord wasn’t for us) and invested the profits. With our savings on autopilot, we’ve loosened up our spending a bit and are putting money into our hobby farm with no plans to monetize it. Listening to Ramit and Paula’s podcasts about moderation, I’m feeling pretty good that, barring any disasters, we’ll live comfortably.
Shifting away from constantly thinking about money is a work in progress. After 15 years of chasing wealth, I’m ready to move on from that mindset. I’d love to hear where you’re at in your financial journey!
– Financial Explorer
Response from THE MONEY MINDER:
Sure, here is your text in bold:
Hello There,
First off, congratulations on your financial journey and the significant milestones you’ve achieved along the way. It’s clear from your progression that you’ve been diligent, adaptable, and proactive in shaping your financial future, moving from high-interest debt to CoastFI and even investing in a dream home. Your willingness to adapt and find new financial educators as your needs evolved is impressive and commendable.
It’s perfectly natural to transition from an intensive focus on financial goals to a desire for a more balanced, happy life as your situation stabilizes. Given your current status, you might find value in automating your financial processes even further, allowing you to disengage from constant money management. Since you’re already maxing out retirement accounts and have a clear trajectory for the next 17 years, consider setting up automatic annual increases to your retirement contributions, if available, to outpace inflation and wage growth without additional manual effort.
You mentioned wanting to move away from an obsession with achieving wealth. A practical step to do this is to establish a “set it and forget it” strategy for your investments, which you seem to have partially adopted. Beyond that, regularly scheduled check-ins—quarterly or semi-annual—might help maintain necessary oversight without consuming your daily life.
It’s also worth acknowledging the potential benefits of a well-tailored financial plan that includes ample room for discretionary spending. Since you’re CoastFI, allowing yourselves to enjoy more personal and family experiences without guilt can be an advantageous shift. Incorporating a “guilt-free spending” category, as advocated by Ramit Sethi, can be a refreshing approach.
Additionally, investing your time now in non-financial pursuits could diversify your personal fulfillment just as you’ve diversified your financial portfolio. Hobbies, community involvement, continued education, or spending quality moments with loved ones can provide intangible returns that are invaluable.
In conclusion, your awareness of both your financial freedom and desire for a richer life experience is astute. As you navigate this transition, remember that true wealth encompasses not just financial health, but emotional and psychological well-being too. Best of luck as you strive to achieve this balance.
Farewell and continued success on your journey,
THE MONEY MINDER
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