So you like this idea of what JL Collins calls “f-you money”. You think, “ Ya I’d like to be financially independent. Who wouldn’t?” But do you really buy this idea that if you saved what you don’t need to spend now, you wouldn’t HAVE TO work anymore? You need to take a look at what you’re spending and then we can talk. Do you really need that cable package? Maybe you could cut back on your grocery or restaurant spending a bit. Do you really eat $1000 worth of food per month or is it rotting in the back of the fridge? You can’t know where your money is going until you take a look at it. It’s really the only way to know where you can trim. Some more great advice from JL Collins NH, “Spend less than you earn- invest the surplus– avoid debt.”
So you have some money saved, “what now?” Here’s some more good advice about what to do with it . I personally invest in Fidelity’s Zero Cost Total Market Index Fund because this fund doesn’t charge any fees and zero fees is optimal. I don’t want to pay fees to banks if I don’t have to. This super fun and short podcast is amazing for understanding the value of Index Fund Investing. Most FI people seem to be invested in Vanguard Index Funds since Vanguard’s John C. Bogle is the grand-daddy inventor of the Index Fund. I can see why they would want to stick with these well performing, nicely diversified funds with an amazing track record. But like I said, I don’t want to pay fees if I don’t have to- even 0.04% like the Vanguard S&P 500 index fund. I loathe bank fees. Thank you Fidelity Investments for making my dreams come true.
