🍺 Basics of Financial Independence

Author

Jordan Batchelor
October 08, 2024

🍺 Basics of Financial Independence 

Thanks for Stopping by Poor Boy on your bathroom journey! 

Let’s be real…. sometimes the best financial advice is so simple it hurts—yet most people still miss it. Today’s article is a reminder of the basic principles that many of us either overlook or just plain ignore. It’s about getting real with your money and making smarter decisions every day.

Today's Report: Wealth Advice that Should Be Obvious by Mr. Money Mustache

Let’s get into the key points:

Author’s Poor:

  1. Don’t Gamble: If your goal is to get rich, gambling isn’t your strategy. The only winning move is not to play. With that being said, a guy just won 10 million in the town I live in off a scratcher ticket. The next day he won another two thousand at the casino. He also took the lump sum option on the lotto ticket winnings… we’ll see how long those funds last ;)

  2. Use Windfalls Wisely: Any unexpected money should go towards buying freedom, not toys. Put it into debt repayment or investments, not lifestyle inflation.

  3. Afford Only What You Can: Just because you can doesn’t mean you should. If you’re in debt or still grinding at a job you don’t love, think twice before buying things you don’t need.

  4. Avoid Buying Junk: Ask yourself if it’s a necessity or just another burden. Most purchases won’t make your life better in the long run.

  5. Skip Storage Units: If you have to pay to store your stuff, you probably don’t need it. Craigslist/ FB marketplace is your best friend here.

  6. Restaurants Aren’t Your Kitchen: Dining out is great for special occasions, but if you treat it like a regular source of meals, you’ll pay more than just the bill. Your wallet and waistline will feel it.

  7. Automate the Good Stuff: Set up automatic payments and investments to free up your mental bandwidth and avoid late fees.

  8. Stock Up When It’s On Sale: Buy in bulk for items you always use, and don’t be shy about stocking up when prices are right. It’s a small step that adds up over time.

My Poor:

If you didn’t know, Mr. Money Mustache (MMM) retired in his early 30s, living off around $40K a year from his portfolio with his wife and kid. This was nearly 20 years ago, and he’s considered one of the pioneers of the FIRE movement (Financial Independence, Retire Early). Now, I get it—MMM’s approach is a bit extreme for most people. He’s hardcore about cutting expenses and optimizing every aspect of life. But despite the intensity, there’s a lot of wisdom in what he says. 

If early retirement isn’t your goal and your budget can handle it, go ahead—work until 65 or 70 years old and splurge on that boat you take out a few times a year or the luxury car. But if financial freedom is what you’re after—working because you want to, not because you have to—then it’s all about making smart decisions and letting your money grow for you. With that being said, I support building lasting memories, and if the $200k boat with $20k annual maintenance costs brings that much joy… Well you have expensive taste my friend 🍻

Thanks for stopping by for a PBR. If you have a poor buddy, share this with them to make them less poor 🙂 See you same time next week!

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-Jordan Batchelor-

Disclaimer: The content provided in The Poor Boy Report (PBR) is for educational and informational purposes only and should not be considered as professional financial advice or investment recommendations. All information presented is based on personal opinions and research and may not reflect the most current developments in personal finance.

PBR is not a registered financial advisor, and no content in this newsletter constitutes or should be interpreted as, a specific offer or solicitation to buy or sell any financial products or investments. Always consult with a licensed financial advisor or other qualified professionals before making any financial decisions or taking action based on the information provided in this newsletter.