Tag: frugality

How Much are You Really Earning? Hourly Wage vs. Hourly Profit

How Much are You Really Earning Per Hour?

I think it’s valuable to spend some time thinking about life from a different angle than we’re used to. When deciding whether or not to buy something do you ever think about how many hours you’d have to work in order to pay for it? How would you even calculate this?  If you’re like me, you’d take the purchase price and divide it by your gross hourly wage, but this number is almost irrelevant.  Instead, we should be considering purchases based on our hourly profit.   Continue reading “How Much are You Really Earning? Hourly Wage vs. Hourly Profit”

What if Everyone Ate Rice and Beans?- The Hedonic Treadmill and Pursuing Happiness

"You know, if you could learn to cater to the king you wouldn't have to live on rice and beans.' To which the monk replies: 'If you could learn to live on rice and beans, you wouldn't have to cater to the king." - The Simple Path to Wealth

Woooo girl.  Rice and beans.  That little parable is straight fire, as the kids say.  Red, hot fire.  At least they used to say stuff was fire, until adults started to say it on their financial blogs.  Now kids no longer feel the need to say it.   If you’re wondering, yes, I did high-five myself when I read that story.  It’s called a clap, it’s trendy.

If you would only spend your days working your life away you wouldn’t have to live so frugally.

OR

If you would only learn to live more frugally you wouldn’t have to spend all your precious days working. Continue reading “What if Everyone Ate Rice and Beans?- The Hedonic Treadmill and Pursuing Happiness”

Why Pursue Fi- The Pros and Cons of the Frugal Lifestyle

We are pursuing financial independence.  It’s nice to have the type of income where that is even remotely feasible.  We don’t take that for granted.  It’s not all roses and ramen though.  There are a lot of pros to pursuing financial independence and a lot of cons.  It’s important to keep a healthy frame of mind in both because it’s a long journey.  You have to keep a centered mind for a long time. Continue reading “Why Pursue Fi- The Pros and Cons of the Frugal Lifestyle”

Save Pretax-Becoming a Millionaire and Achieving Financial Independence

Trying to save after tax money is hard.  A much easier plan to wealth accumulation is to invest pre-tax money.

In conversations with folks one thing I’ve noticed popping up is people dismissively saying “I won’t ever become a millionaire…”  My follow up question is always “Why not?”

A million dollars certainly isn’t what it used to be but still people have this mental block about that number.  It’s impossibly far off.  Something to be achieved only by those who win the lottery or make it to the big leagues.  It’s really not as hard as all of that. Continue reading “Save Pretax-Becoming a Millionaire and Achieving Financial Independence”

Financial Independence- The Freedom to Choose

What is Financial Independence and why do we pursue it?

In a nutshell, financial independence is when you have enough passive income to cover your basic expenses.  Being financially independent means working for money is optional.

We are pursuing financial independence because life is short.  We both enjoy our jobs but we want the freedom to take time off, spend more time with our future children, and travel more.

Being financially independent also guards against having a financial emergency if something happens and one or both of us are no longer ABLE to work. Continue reading “Financial Independence- The Freedom to Choose”