FI Detective

How anyone can reach financial independence in 5 years or less. // A thread

The first $100,000 is a bitch 8 things I did to get my first $100,000 after college and how you can do it too /THREAD/

The Path to Financial Freedom Here are the 10 stages of Financial Freedom /THREAD/

If you save 50% of your income every day you work earns you a day you can take off. Save 75% and one day of work earns 3 days off Make it 80% and one day gets you 4 off. Saving 90% gets 9 days off per 1 day worked. Savings = Freedom

@theficouple Even if you just cut it in half, it would likely result in thousands more invested yearly. This can be the difference between reaching FI in 10 years vs 30.

Let’s visualize this 1. Calculate your housing payment 2. Now make that number $0 3. Imagine what you could invest that money into That’s what house hacking does for us and many others every month 🙏🏻

@MoneyJrod @markallanbovair @Kuzmanomics What could be better than every company in the US for no fees!

@markallanbovair @Kuzmanomics 6k lump? Nice! I personally use a Fidelity Zero Total market fund. $FZROX. Zero fees and you are exposed to the entire market. Zero initial investment as well. Perfect for just getting started

Did the 6k lump sum into the Roth IRA. Going to buy index funds. What’s everybody like?

@InvestorsTheory Very true, once you own some and begin to learn more you certainly never want to convert it back into fiat currency. It also teaches you tons about the financial system and how money works. Things I would have never known before crypto came along.

@living_job_free Rarely do you see someone buy it and decrease their allocation after they continue learn more about it. Sometimes even buying $50 worth is what it takes to learn enough to understand it.

@waitbutwhy Lifestyle for me. Been looking for more freedom for a while. Being cooped up in the house spending the majority of my time working is getting old.

Which arm of the yearning octopus do you most yearn for these days? (If you’d rather answer anonymously, there’s a poll in the replies.)

@SteveOnSpeed Most people that fit this description are the luckiest human beings to have ever lived in all of history. People don't seem to acknowledge it though.

Most don’t know how good they have it. Speak English? Internet access? Live in the 1st world? News flash: You have it pretty damn good.

@DecadeInvestor Just like Charlie Munger always says. The first $100,000 is the hardest part but you have to do it. Then you can let off the gas a bit.

@RealVision They do help avoid massive debt crises and keep the economy afloat which is a good thing. Before central banks the lender of last resort was just big private banks so makes sense the government stepped in. Now with Bitcoin to hedge central bank risks they seem fine.

#ThursdayDebate 💥 Are central banks a necessary evil?

@InvestorsTheory #3 is simultaneously the most important and the most difficult. In the words of Jack Bogle: "Don't just do something, stand there!"

How to be a top 1% investor: 1. Find the right investments 2. Buy them 3. Don't sell them People too often forget #3

Consistency and discipline are the 2 greatest advantages you can give yourself in life. If you want to grow your business, start a side hustle, get healthier, or even just save more money. Nothing will be more important than consistency and discipline.

@phn1x @ramit Can't argue with that, seems like a great choice.

Common beliefs in the personal finance world that I disagree with - Never buy a new car - Overpaying your taxes is dumb because you're giving the government an interest-free loan - Have a cheap wedding so you can start life together by buying a house - Cut back on lattes

@finance_josh Great thought on this from Morgan housel in his book: When you see someone with a $100,000 sports car it doesn't mean they're wealthy. The only thing you know now is they have $100,000 less than before they bought the car.

@bizofwealth Not exact but there's a stat showing globally all the stock market gains come from 2% of companies or so. If you missed them you'd have a far lower ROR "Don't look for the needle in the haystack, just buy the haystack." -Jack Bogle

Biggest long term investing risk is not having exposure to the things that are going to change the world

@MorningBrew If you could invest directly into fortnite would you do it? Any other specific games people would invest in? Personally I would invest in rocket league, it's huge and growing faster and faster each year.

Fortnite revenue broken down by gaming system PlayStation 4: 46.8% Xbox One: 27.5% Android, Nintendo Switch, PCs: 18.7% iOS: 7% From Epic Games's court documents ahead of its legal showdown with Apple

@theessentialman @ramit Totally fair. I guess I'm in the minority on this one 😂 I prefer getting things used cause I enjoy the process and the feeling of saving money. End of the day everyone is different, thanks for giving the opposite perspective.

@WheresP @ramit Everyone says used cars are stressful, but I feel the opposite way. It's cheaper to fix an old reliable car than to pay maintenance for new cars. Just feels like people rationalize new cars after the fact when all data points to used being far better.

@ramit @living_job_free Having a new vehicle, even with payments, has been so much less stressful for me than used. Less anxiety and I know every thing about them. Current vehicle is near 150k miles, has been paid off and hasn't had any major issues. Not the option for everybody, but great for me.

@ramit Build a good credit score. I've seen so many people take on debt for the sole purpose of building a credit score. I see no point in getting into debt just for the privilege of getting into more debt in the future.

I want to hear from you What are some common beliefs in the personal finance world that YOU disagree with?