Henry says “I did it”

I am Henry. When I was 4 years old, my parents divorced and that ended my childhood. I was sent to live with relatives who struggled to earn a living. I marked cards in the gambling house and sold cigarettes on the streets.

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What is Financial Independence

You have FINANCIAL INDEPENDENCE when your unearned income can pay for your expenses. You can be financially independent when you spend a lot and investment income is high. You can be also financially independent when you have much less assets but your expenses are low. So net worth is a factor, but just as important is your expenses. There are also degrees of financial independence. … Continue reading What is Financial Independence

Quickly grow a non-career identity

Many people tie their sense of self to the work they do. If they work for only one employer in their lifetime, they might tie their self-concept to the company. We hear horror stories of Japanese employees who continued the daily routine of dressing up, taking the train to work, and hanging around their old offices. There are similar stories in other countries. A close … Continue reading Quickly grow a non-career identity

Reduce Expenses

If you haven’t provided sufficiently for your retirement, it is obvious you need to cut your expenses. Even if your financial planning is perfect, the loss of your regular income is likely to be a psychological shock. You can decrease this shock by reducing your spending. Defer any major expenditure e.g. a new house, auto, computer, or video equipment. This is especially critical if you … Continue reading Reduce Expenses

Be prepared

This scout’s motto works just as well for learning, earning, saving, investing, and retiring. Do your homework and get things ready before you need them. Retrenched employees who survive the best are those who monitor whether their employers would need them in the next few months, and who constantly check the market for new opportunities. Shoppers who get the best deals know what they need … Continue reading Be prepared