Monthly Archives: March 2017

FIRE.029 One in a Million? a Dozen? – You have millionaire neighbors

How many homes are on your street? Ten? Twenty? Are any of your neighbors rich? Probably yes.

After reading Thomas Stanley’s The Millionaire Next Door years ago, It never occurred to me that some of my neighbors had crossed that massive threshold. Then I started looking for Camry’s and F150’s and wondered if those people were the rocking rich. Those people who might be living a possibly financially independent or secure life.

Wow, just thinking about those millionaires that must be around me is particularly intriguing. My wife and I live in a “normal” basic neighborhood with 25-30-year-old houses. Yet interestingly, not too many young children playing in driveways or the street. Side thought: could these childless households around us have, or be on their way to substantial wealth? Could there be millionaires around us?

I’ve read multiple articles lately that say there are now over 10 MILLION households in the US with millionaire net worths. It’s strange that these articles tend to pop up when stock market values are high and people may be more flush with higher net worth.

So I calculated, if there are say 125 million households in the US, then there may be one millionaire household in every 12-ish. One in a dozen. That seems amazingly great. Maybe that’s why some people say “a million’s not what it used to be.” But “millionaire” sure sounds great to me.

Call to action: Can we all take some of the principals from the millionaires profiled in books and articles and use these as a framework for our own finances? Absolutely. There is no doubt you can learn from others. Why not take some learning from “normal” people who managed their finances well.

Off the top of my head:

  • Spend less than you earn – BAM! Nothing more to say.
  • Pay yourself first, save/invest – Find a way to remove some income from your monthly money visibility. Each paycheck, get that money out of your checking/debit account immediately.
  • Purchase wisely – need or want?, delayed gratification skill, can you buy used and let someone else pay retail/the depreciation? To ease the used item argument, I say “everything has a ding.” It helps me rarely require a new item (notice I didn’t say “need” a new).
  • Pick the right partner – Your partner needs to compliment/support your daily activities and dreams.
  • Maybe even, start your own business – “Wealth flows to owners” of successful businesses. Even on a small scale, owning equities has worked for all US history. Being a principal owner could even lead to more opportunity.

If you don’t care to be a millionaire right now, that’s OK, because in 20 years it will twice as easy to get there. Maybe at that point, it will be your goal.

FIRE.028 My week on FIRE

Opening my eyes each morning is a wonderful thing. Yes, it’s always great to be alive each morning, but knowing that the day ahead is my own is so amazing.

If you aren’t in FIRE yet, or in “normal” retirement, don’t be mad at us, just take some of these ideas as a target for yourself if you have the same intention.

I have so many options for the first hour of my day:

  • I can lay in bed and read a little, lay in bed and relax, I could try to meditate for some extra zen (I’m not yet able to do this, but I’ll keep trying), I can even go back to sleep if I want more zzzs. If I raring to go, I can jump out of bed immediately.
  • Once up and at ‘em, I have a new set of options. I can make breakfast, I can read the news, I can read something educational, I can read something entertaining. I could watch tv if I felt the need to slack (never happens). I usually go relax in my spa for a little while and read something interesting. The morning spa has been a part of my morning activity for over a decade. When I worked from home I knew my spa time was exactly the same time most people had to suffer in their commute to work. So my spa time initially became known as my “commute.” Commute to my home office. Now, it’s more of a zen/selfish time.

Mid-Day time:

  • At this point, we’re now talking about 9a-ish until later afternoon,4p-ish. This is like power time.  In my area, this has a lower traffic volume making errands far easier than later or on weekend. The stores still seem busy (doesn’t anyone “work?”) but calm enough. The weather is usually great to exercise or be active. What a chunk of time to be productive if you chose.

Stressless evenings:

  • My evenings starts off with no commute/stress. Usually, no errands while others are trying to do the same. This can be a nice wind down (or finish up to daily activities). There is time for learning new things because the real tasks may already be completed.
  • When I’m ready to crash for the night, I can. I don’t need a clock reminding me that I need to sleep so I can be up for tomorrow. I usually fall right asleep after a relaxed evening which followed an enjoyable day. I sleep great at night knowing the 2am secret.

My point is your entire day/week task time shifts in FIRE. Not only do you have more time for your tasks, you are flexible in the completion of these tasks (screw it, today I’m going to hike instead), you are less stressed when performing tasks (income tax prep comes to mind this month). I also believe you may complete tasks better because of the three previous ideas.

Stress reduction and life enjoyment are critical for us. I believe health, happiness, and family are super important and finding the best in each, no matter what your working situation is, makes each day/week more enjoyable.

Can you find a way to shift things to make your time better?