““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.
Every person will have a different definition of what counts as “the long run”, but it is probably fair to say that a decade is thought of as a long time by almost everyone. That is enough time to bring
Money cannot guarantee happiness but grinding poverty can almost certainly guarantee misery. It is difficult to be happy when you know, in the back of your mind, that you are one small misfortune away from being unable to pay next