Boring! I know that is probably your reaction to the title of this article and I can’t really blame you. There is nothing exciting about savings bonds and you’ll never get rich by investing in them. In fact, you may
““Like Warren, I had a considerable passion to get rich, not because I wanted Ferraris — I wanted the independence. I desperately wanted it.” — Charlie Munger The world can appear vastly unequal in terms of the goods and services
Starting out too quickly in a marathon is a classic beginner’s error. The adrenaline rush of the starting line, a rested body, and watching others start off strong can conspire to accelerate your pace beyond the level that can be sustained for 26.2 miles. Exceeding your physical capacity at the start can have dire consequences toward the end of the race. Aspects of personal finance resemble marathon running as well. To go the distance, you must pace yourself.
The goal of financial independence is best viewed as a means to an end rather than an end in itself. Simply defined, financial independence is achieved when a person can generate a stream of cash flows from accumulated assets that exceeds his or her spending needs. No specific “magic number” translates into independence for everyone.
“Most people overestimate what they can do in one year and underestimate what they can do in ten years.” — Bill Gates Every person will have a different definition of what counts as “the long run”, but it is probably