The aim of financial independence shouldn’t be for your pension, but for your freedom, the freedom to choose in any given moment of your life
Money can buy many things, none of which are more important than one's financial independence. Such independence can offer the freedom to travel, but also to take a break and spend time raising a child, for example, and being able to let go of the need for a fixed salary.
To be able to earn your financial freedom and build your own "F-you Money", that is the money for freedom, there are three basic rules, summarised in this sentence: spend less than you earn, invest the surplus, avoid debt.
Debt is promoted and accepted as a perfectly normal part of life, but it is actually the first major obstacle to building wealth. In America, the total debt fluctuates around 12 trillion dollars: 8 trillion in home loans, 1 in student loans, and as many as 3 in miscellaneous consumption charged to debit cards.
Save 50% of what you earn, don't get into debt, don't commit to any instalment payments and "make your money work" by applying the lessons on indexing that Jack Bogle, founder of The Vanguard Group and inventor of index funds, perfected 40 years ago.
The key ideas of "The Simple Path to Wealth"
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