I read a post that made me stop and think. The post indicates that one of the keys to growing your wealth was to āHave a High Incomeā. That made me stop and think. What does financial freedom actually look like? Is it earning moreā¦ or finally feeling like youāre in control of your money? Iāve been thinking about this a lot lately. Because we hear things like āearn a high incomeā all the time and itās trueā¦ income does matter. But I also wonder how that lands for someone just starting outā¦ or someone who feels like theyāre behind. I didnāt start investing until I was 50. And when I started, it wasnāt big money. It was a few hundred dollars at a time. What Iāve learned since then is this: Financial freedom, at least for me, didnāt start with income. It started with taking control. Paying myself first. Staying consistent. Letting time do its thing. Over time, my income grew. But just as important, my confidence with money grew too. Not from strict budgetingā¦ But from understanding what I needed, what I valued, and what I could invest. Sometimes that meant making small trade-offs. Not skipping lifeā¦ just adjusting it, so I could still enjoy it and invest at the same time. That balance is what made it sustainable. Because if youāre not happy along the wayā¦ what are we really building? Income absolutely helps. But learning how to use what you haveāconsistently, over time, is what really builds wealth. So if youāre starting smallā¦ youāre not behind. Youāre just at the beginning. Curiousā¦ What made you feel like you were finally in control of your money?
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8 Comments
L G@junky12 Ā· 4moEdited
Good post. I was always very careful with money right from when I started working part time in the early 80ā and started investing myself in the mid 90ās when I came to understand a bit of the stock market due to being in the high tech field and my company giving me stock options. We became debt free in 1998 when my company was sold and my options were cashed out. Since then, I never paid a dollar more in interest on any loan or mortgage for anything. We upsized our home 4 times since then and bought a few vehicles along the way. Instead of taking my money and lavishly spend it, we paid the mortgage off and invested in a taxable account. Thankfully we did because my wife had to quit her job after the birth of our 2nd child in 2000 and the dot com bubble bursting in 2001. I ended up becoming a high income earner but never acted as though I did. Kept taking lots of extra cash and investing it along the way. Got laid off twice but was able to find a job quickly and take the severance money to stuff our RRSPs. All of this allowed me to retire last year at 58, now 59. I guess it was a combination of good money management, investing early, and good income. Very thankful and blessed to be in our situation.
Kar Yung Tom@karyungtom Ā· 4mo
I guess it depends on what the original post was implying. Having a high income does make the rest easier but you're right in that it's a lot more than that.
Heather Fly@heatherfly Ā· 4mo
Great post! I couldn't agree more, it's more about your money mindset that helps the most to guide better financial decisions. I'm a late investor. Trying to do all the things... buy a home, take care of family, be a high earner and make a contribution to society left me pretty tapped out all around. Focusing on the big picture has helped me reset and gain my balance. And now, finding income investing tools... super stoked for the next decade! š„³
Sarah Giver@staystronggiver Ā· 4moEdited
I agree with your post completely we all got to start somewhere, I tell young people to start with 30 dollars a month, I remember being young and not having enough money for a bus pass. Well said šš½. I agree with you we don't need much money or a high income to start investing. I also want to acknowledge that we all have dramatically different costs of living due to the housing crisis. Being in a position where one can invest takes a lot of work, having an emergency fund is the groundwork. We couldn't afford to invest for what felt like a long time. But what served us was not upgrading when I was able to get back to work. It's been a wild mad dash to catch up. What helps is not to compare yourself with anyone else, and to remember in this economy, not being in debt is already an achievement. Budget and plan so that you know exactly what you'd do when you earn enough money. Then you can hit the ground running. If I were to compare my journey to others my husband's age (since he's a decade older) then I'd feel defeated. But we are miles ahead from when my son was born and we were living in a one bedroom apartment, barely any savings and being served legal paper from a collections agency about to sue us. Remember that whatever situation wrecks your finances, it's temporary. Not every phase of life is about investing, sometimes it's about surviving, and that's OK. With that perspective where we are now feels nothing short of a miracle and now the sky is the limit. Anyone dealing with financial difficulties, be patient. It's a slow and long journey but don't minimize what you've achieved and how far you've come. š
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