I need to be direct about something: the phrase “expense justification” bothers me. Not because it’s inaccurate—we absolutely rationalize our purchases. I hate it because it frames overspending as a psychological problem that requires therapy or mindfulness or better self-awareness. The real problem is simpler and more uncomfortable: most people don’t actually budget. If You’re […]
My friend David is one of the smartest people I know about money. He reads financial research papers for fun. He can explain the Sharpe ratio without googling it. He rebalances his portfolio quarterly and has a spreadsheet that tracks his net worth down to the dollar. He also has $180,000 in car loans. Not […]
I was 26 when I turned down the apartment upgrade. My lease was ending. I was getting a raise. The new place was only $400 more per month, and it had in-unit laundry, a real kitchen, and I wouldn’t have to share a public bathroom and dry my clothes on the public rooftop. Everyone I […]
Exercise is an important part of any healthy routine. It is a guard against chronic diseases. It stimulates happiness inducing brain chemicals. And its a great way to keep weight in check. Getting the minimum 150 minutes of moderately vigorous exercise a week will leave you feeling happy, healthy, and mentally sharp. In case you’re curious, thats 30 […]
With a move to Washington DC on the horizon, transportation is top of mind. Beijing has about the best public tranportation in the world, something Washington DC will struggle to compete against. So Mr. FIRE Power is in the market for a FIRE-powered vehicle. Ranking expenses for the average American household, transportation comes in at […]
After a decade in China, Mr. FIRE Power is moving to Washington D.C. 10 years ago last month I landed in Shanghai China with freshly learned language skills and a set of big ambitions. I had not heard of financial independence at the time, but the lifestyle choices I made in those early days would […]
There are a number of budgeting and personal finance applications on the market today that aggregate financial account information in one place to offer users a holistic picture of their finances. Many do not cost money, and can be helpful for those unwilling or unable to create personal spreadsheets or data bases to track financial […]
The hard work of financial independence begins with a budgeting exercise. To develop more sustainable savings habits, we first need to understand what we spend. The next step is the sometimes-painful adjustment to a more frugal lifestyle. That usually means more dinners at home, rethinking entertainment, and limiting major purchases. I went from 10 percent […]
In the original post I wrote, “[this blog] will cover the shifting nature of work brought about by technological disruption. Financial defense now is critical to prepare for a future of disparate employment, declining pensions, and deterioration of the traditional concept of career.” Beyond the many of the benefits financial independence brings about, fear of this change […]
High savings. Low spending. We’ve established that is the key to financial independence. Over the past few months we’ve discussed a number of passive investments ideal for growing wealth, primarily through index and exchange traded funds. These are super vehicles, but even when the average long-term investment return is 7 percent, there are plenty of […]
