Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Global Stock Markets Break Hard To The Downside – Watch Support Levels - 23rd Sep 20
Beware of These Faulty “Inflation Protected” Investments - 23rd Sep 20
What’s Behind Dollar USDX Breakout? - 23rd Sep 20
Still More Room To Stock Market Downside In The Coming Weeks - 23rd Sep 20
Platinum And Palladium Set To Surge As Gold Breaks Higher - 23rd Sep 20
Key Gold Ratios to Other Markets - 23rd Sep 20
Watch Before Upgrading / Buying RTX 3000, RDNA2 - CPU vs GPU Bottlenecks - 23rd Sep 20
Online Elliott Wave Markets Trading Course Worth $129 for FREE! - 22nd Sep 20
Gold Price Overboughtness Risk - 22nd Sep 20
Central Banking Cartel Promises ZIRP Until at Least 2023 - 22nd Sep 20
Stock Market Correction Approaching Initial Objective - 22nd Sep 20
Silver Bulls Will Be Handsomely Rewarded - 21st Sep 20
Fed Will Not Hike Rates For Years. Gold Should Like It - 21st Sep 20
US Financial Market Forecasts and Elliott Wave Analysis Resources - 21st Sep 20
How to Avoid Currency Exchange Risk during COVID - 21st Sep 20
Crude Oil – A Slight Move Higher Has Not Reversed The Bearish Trend - 20th Sep 20
Do This Instead Of Trying To Find The “Next Amazon” - 20th Sep 20
5 Significant Benefits of the MT4 Trading Platform for Forex Traders - 20th Sep 20
A Warning of Economic Collapse - 20th Sep 20
The Connection Between Stocks and the Economy is not What Most Investors Think - 19th Sep 20
A Virus So Deadly, The Government Has to Test You to See If You Have It - 19th Sep 20
Will Lagarde and Mnuchin Push Gold Higher? - 19th Sep 20
RTX 3080 Mania, Ebay Scalpers Crazy Prices £62,000 Trollers Insane Bids for a £649 GPU! - 19th Sep 20
A Greater Economic Depression For The 21st Century - 19th Sep 20
The United Floor in Stocks - 19th Sep 20
Mobile Gaming Market Trends And The Expected Future Developments - 19th Sep 20
The S&P 500 appears ready to correct, and that is a good thing - 18th Sep 20
It’s Go Time for Gold Price! Next Stop $2,250 - 18th Sep 20
Forget AMD RDNA2 and Buy Nvidia RTX 3080 FE GPU's NOW Before Price - 18th Sep 20
Best Back to School / University Black Face Masks Quick and Easy from Amazon - 18th Sep 20
3 Types of Loans to Buy an Existing Business - 18th Sep 20
How to tell Budgie Gender, Male or Female Sex for Young and Mature Parakeets - 18th Sep 20
Fasten Your Seatbelts Stock Market Make Or Break – Big Trends Ahead - 17th Sep 20
Peak Financialism And Post-Capitalist Economics - 17th Sep 20
Challenges of Working from Home - 17th Sep 20
Sheffield Heading for Coronavirus Lockdown as Covid Deaths Pass 432 - 17th Sep 20
What Does this Valuable Gold Miners Indicator Say Now? - 16th Sep 20
President Trump and Crimes Against Humanity - 16th Sep 20
Slow Economic Recovery from CoronaVirus Unlikely to Impede Strong Demand for Metals - 16th Sep 20
Why the Knives Are Out for Trump’s Fed Critic Judy Shelton - 16th Sep 20
Operation Moonshot: Get Ready for Millions of New COVAIDS Positives in the UK! - 16th Sep 20
Stock Market Approaching Correction Objective - 15th Sep 20
Look at This Big Reminder of Dot.com Stock Market Mania - 15th Sep 20
Three Key Principles for Successful Disruption Investors - 15th Sep 20
Billionaire Hedge Fund Manager Warns of 10% Inflation - 15th Sep 20
Gold Price Reaches $2,000 Amid Dollar Depreciation - 15th Sep 20
GLD, IAU Big Gold ETF Buying MIA - 14th Sep 20
Why Bill Gates Is Betting Millions on Synthetic Biology - 14th Sep 20
Stock Market SPY Expectations For The Rest Of September - 14th Sep 20
Gold Price Gann Angle Update - 14th Sep 20
Stock Market Recovery from the Sharp Correction Goes On - 14th Sep 20
Is this the End of Capitalism? - 13th Sep 20
The Silver Big Prize - 13th Sep 20
U.S. Shares Plunged. Is Gold Next? - 13th Sep 20
Why Are 7,500 Oil Barrels Floating on this London Lake? - 13th Sep 20
Sheffield 432 Covid-19 Deaths, Last City Centre Shop Before Next Lockdown - 13th Sep 20
Biden or Trump Will Keep The Money Spigots Open - 13th Sep 20
Gold And Silver Up, Down, Sideways, Up - 13th Sep 20

Market Oracle FREE Newsletter

How to Get Rich Investing in Stocks by Riding the Electron Wave

Financial Independence Has Nothing to Do with Being a Millionaire

Personal_Finance / Money Saving May 23, 2019 - 05:52 AM GMT

By: Jared_Dillian

Personal_Finance

I am on Facebook, and there is a lot of crap on Facebook. Even the non-political crap is stuff I just do not believe in.

For example, people say that you should spend your money on experiences, not things. There is some spiritual component to this that I don’t get.

I like spending money on experiences (particularly travel), but I like spending money on things more. Clothes in particular.

You feel (and act) differently when you are wearing an expensive suit and an expensive pair of shoes. People who make $150,000 a year and still get all their clothes at Target do this not out of frugality, but low self-esteem.

It is good and right to spend money on yourself now and then.

The other crap you hear on Facebook, and pretty much everywhere else, is that money doesn’t make you happy.


Oh yes it does.

It is not going to fix broken relationships, or compensate for your bad behavior, or cure your addictions. But buying nice stuff makes you feel good, and nobody should make you feel guilty about that.

The Concept of Abundance

Let’s talk about the concept of abundance, where there is always more than enough in your life.

You have enough for the basics—food, clothes, a roof over your head. You have enough for some luxuries—a nice watch, a nice car, some toys. And you have enough that you can give lots of it away.

I’m sure you are familiar with the book The Millionaire Next Door. I hate that book.

Anyway, the book implies that everyone should aspire to be a millionaire. No—everyone should not aspire to be a millionaire. For some people, it is simply not attainable. And you are going to annoy a lot of people in the process.

Your goal should be to reach a state of abundance.

Where you have more than enough for yourself, your friends, your family, and your charity—and you never have to worry about money. Abundance is a state of mind, more than anything.

The magic of abundance is that some people get there with $25,000 a year.

(For me, it took a lot more.)

Delaying Gratification

This is not some hippy-dippy essay about how you can be like Gandhi and own a pair of sandals and be happy.

Lots of people who say they have enough are lying. Most people wish they had more.

Getting to a state of abundance takes a lifetime of work and effort. You have to be smart with money and think long term when making financial decisions, i.e.:

  • take advantage of a tax-deferred retirement account,
  • use the 30% rule when you buy a house,
  • or don’t get a car loan with a 7-year maturity.

Otherwise you are probably not going to reach a state of abundance.

None of this is hard. It’s just being smart and practicing a little delayed gratification.

In other words, it’s not a skill problem; it’s a will problem. And that’s the main reason the personal finance “industry” is filled up with bloggers and influencers, even though it’s really not that hard.

In a lot of cases, abundance isn’t a revenue problem, it’s an expense problem. For many people, more money doesn’t solve the existential problem of lack of money.

Abundance doesn’t mean spending it all. It means having enough for yourself, your family, and your causes—and having plenty left over.

Saul Bloom famously quipped in Ocean’s Twelve that he wanted the last check he wrote to bounce.

Cute, but that’s not really what you want. You want to be able to leave something behind to your descendants, at least while you have the ability to do so.

In my case, there will be lots of happy cats.

Some People Never Get There

The other thing about that god-awful Millionaire Next Door book is that all the people profiled in it didn’t change their behavior once they became millionaires. They were still rabid savers.

I wrote a while ago that you want to be a saver earlier in life so you can be a High Roller later in life. Most people get it completely reversed. And that is the source of all money unhappiness.

I’m a lucky guy. Cool job, great marriage, nice house, fun hobbies—I have it all. It was a struggle in the beginning, but because of hard work and many good money decisions (and a handful of bad ones), it is no longer a struggle.

Plenty of people have more money than I do. I hear about them all the time because I have a lot of high-net-worth financial advisors as friends. You would be amazed at what’s out there.

I have abundance, which, summed up in one sentence, means:

Everything is going to be okay.

Free Report: 5 Key ETF Trading Strategies Every Investor Should Know About

From Jared Dillian, former head of ETF trading at Lehman Brothers and renowned contrarian analyst, comes this exclusive special report. If you’re invested in ETFs, or thinking about taking the plunge into the investment vehicle everyone’s talking about, then this report is a clever—and necessary—first step. Get it now.

By Jared Dillian

© 2019 Copyright Jared Dillian - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules