A Path to Financial Bliss

“It’s tough to make predictions, especially about the future” Yogi Berra

And it's certainly not all about money. It's really about an attitude and philosophy (see my wisdom page) and keeping your "Wheel of Life" rounded.  

That said, in regards to finances, you could do worse than to employ Investor Business Daily's 10 Keys to Success

It all starts with taking responsibility for yourself and delaying gratification (ala, "The Road Less Travelled" by Scott Peck).  That means separating wants from needs.   And with that commitment will come far less "bad choices" and eventually debt free living for most. Living with less is incredibly liberating.  Read,  "The Millionaire Next Door"  and, "Think and Grow Rich"  They are less about money and more about a lifestyle mindset.

A few tidbits of advice from my experience....

Create a budget and live by it!  How? Track every expenditure via a credit card and set a rhythm for optional expenses (restaurants, entertainment) by adhering to how often you do these activities each month. 

Starting TODAY,  Save a little and reduce debt.  Your budget MUST have a line for this.  I don't care if you are a single mom working a low wage job, a school teacher or a college student...Forgo Starbucks and put away $25 a week.  I recently had an opportunity to discuss this with the Vice President of Lincoln Financial services who helps many less fortunate people.  She attested to how successful this strategy can be...

Consider reducing your possessions and home size. Own a home only if it fits the lifestyle you desire and you aren't planning on moving in the next few years. Home ownership is often NOT the optimum path to wealth, financial independence enabling the mobility needed to pursue your career. .  I recommend this excellent article...For many owning a home is NOT the best way to save for the future 

Once your high interest debt is paid off and you have a least a 2 month emergency fund (preferably 4-6 months), the best way to build wealth to reach a higher economic tier is... INVEST in the economy via the stock market and real estate.  For a long time it was a division between stocks and bonds.  But no longer.  Read "The 60/40 Portfolio Is Dead. Long Live 33/33/33."

Don't even know how to start?  Go to  Motley Fool or Kiplinger  Want to  read book or two?   Start with "Think and Grow Rick" and "Unconventional Success - A Fundamental Approach to Personal Investment" 

Don't waste trying to time the stock market or make the perfect pick.  Just use a 1 stop shopping low Cost "Target Fund" that give you a mix of quality stocks and bonds based on your age.   Or create your own mix with  "Index funds!"  Lots of fish in that sea to do this.  One total market or S&P 500 mutual fund or ETF such as IVV, VT, SWPPX, TRBCX is all you need to start,  Pick one and invest every month until you are middle aged or have enough to branch out into more higher yielding investments.  Create auto investing so you put some in EVERY month.  If possible maximize your ROTH IRA or ROTH 401K. Why ROTH?  Because taxes are going to be much higher in the future.  If you can't maximize your contributions, put half into a taxable brokerage account and half in your tax.  

In terms of investing, until you are near or at retirement be skeptical when it comes hiring financial advisors or active fund managers who will take 1% to 2% of your hard earned investments. My own experience was illuminating.  After doubling my investment money every 10 years for 4 decades, a wise planner showed me if I had inverted all my investments the result would be nearly identical.  In other words, you just have to get in the game, called owning a piece of the economy and let time do it's thing. 

Another way to state this,  "Don't ask a barber if you need a haircut"  from the The Black Swan. No, its not the movie. Its a book by Dr. Nassim Taleb.  Good advice for life in general. More info on my Black Swan page.

Have kids?  Best investment of all time is ensuring they excel in school and life.  When they do get a full ride to college, all the money you saved for college is yours!  No car for the kids.  Pay them a decent wage to apply for scholarships in lieu of an after school starter job.  

Enough already! Time to meditate and picture yourself as a "rotting corpse" per Eckhart Tolle :)  In other words, you can't take it with you when you die, which you will soon enough.

Need more proof and a laugh?  Watch the movie, "The Big Short"   What does it tell you?  In the U.S. you need to take personal responsibility for your actions.  Don't be lazy and not learn what you need to learn...

Ready for some spice to boost you?   Spice your broad-based market fund holding with technology that will take everyone "to the promised land" I recommend QQQ or FTEC if you have a 10+ year horizon.  

Real Estate - I don't care what income level you start at or your ethnicity.  In the U.S. you can become financially independent.  Again read, "The Millionaire Next Door" and take the new opportunity "ride on the heels the big boys".  Finally, when you have monies that:

1) can be long term 

2) you don't need/want more in an IRA or 401-K stocks and bonds 

Go to the ultimate .  I'm talking commercial real estate. Remember, YOUR HOUSE IS NOT AN INVESTMENT. The last best tax shelter.  Crowd Funded real estate  now makes that available to EVERYONE without the challenges and risks of being a landlord.  Some good options "Best Crowdfunding for 2022" 

Remember to stay grounded because there are external events and Black Swans a coming. What you ask?  Perhaps a pandemic or two.  And the big tsunami is Artificial Intelligence.  AI is going to change EVERYTHING. If you agree, invest in the technology ETF's above.  

And it may not all be for the better...More reason to live in the NOW and keep your "Wheel of Life" well rounded.
 
So close the laptop and go mediate on non attachment and equanimity!

Have questions?  Email me