Valuable Lessons from My Eighth Year of Freedom

Summary

In this episode of the Financial Independence Podcast, the host reflects on his eighth year of financial freedom, sharing valuable lessons learned over the past three years since he stopped making annual updates. He discusses a significant mindset shift in how he uses money, transitioning from hoarding to spending it meaningfully. The host also explores the joy of homeownership, appreciating investments in his health, relationships, and his son. He touches on the value of embracing life now, avoiding postponement, and the complexities of stock picking, ultimately emphasizing the benefits of index fund investing and the importance of building relationships over time.

Takeaways

• 😀 After years of annual updates, the speaker stopped sharing updates in 2021 as they felt they were no longer learning enough to offer meaningful advice.
• 😀 In the last three years, the speaker has undergone a significant mental shift regarding money, learning how to spend it instead of hoarding it.
• 😀 The speaker bought a house in 2024 after years of renting, which they now thoroughly enjoy—something they would not have appreciated during their earlier financial independence journey.
• 😀 Acknowledging the luxury of homeownership, the speaker highlights how their financial mindset has evolved, making it easier to enjoy unexpected expenses without stress.
• 😀 Stuff, which the speaker once viewed as a burden, now adds to their happiness, particularly after years of limited possessions while renting.
• 😀 Investing money isn't just about saving—it's about using it to enhance life experiences, such as buying a home or enjoying quality time with family and friends.
• 😀 A significant lesson learned: even if you don't spend your money, it's going to go somewhere eventually—either to heirs, charities, or for a good cause.
• 😀 The speaker reflects on how past investments—both financial and personal (relationships, health, etc.)—have paid off in ways they hadn't anticipated.
• 😀 There’s a new focus on maintaining long-term health, especially as an older parent, so they can stay active and involved with their child's life for decades.
• 😀 The pandemic revealed the importance of not putting off experiences, motivating the speaker to use their money now rather than later, as health and freedom are not guaranteed.
• 😀 Stock picking has its downsides—while success stories like Nvidia and Apple brought great returns, the speaker notes the complications of managing these individual stocks, especially in taxable accounts.

Q & A

What prompted the speaker to stop doing annual updates in 2021?

The speaker felt that they were just living a normal life and not learning anything significant year-to-year. They believed that their updates were no longer providing meaningful advice, so they decided to stop doing them.

What major shift has occurred in the speaker's approach to money since 2021?

The speaker has started using money for the first time, shifting from simply saving and hoarding it to spending it to increase their happiness and improve their life. This mental shift has been a major change in their approach to finances.

How has owning a house changed the speaker's perspective on money and homeownership?

The speaker is now enjoying homeownership, a stark contrast to their previous experiences. They admit that during their path to financial independence (FI), owning a home felt like a mistake due to the unexpected expenses. However, now that they can afford it, owning a home has become a luxury they enjoy.

What does the speaker mean by 'learning how to spend' money?

The speaker refers to learning how to use money effectively to improve their life rather than hoarding it. They’re focusing on spending money in ways that enhance their happiness and well-being, something they had neglected in the past.

What role does the speaker's family and personal life play in their financial independence journey?

Family has played a key role in shaping the speaker's priorities. Having a son has led them to buy a home and focus more on stability, enjoying the time spent with their family, and investing in their relationships and personal health.

How does the speaker feel about material possessions now, compared to earlier in their financial independence journey?

Previously, the speaker was focused on minimalism and avoided buying anything unnecessary. However, now that they have settled down, they’ve started to enjoy owning nice things, such as quality home items and a well-equipped studio, which adds to their daily happiness.

What investment-related lessons has the speaker learned since achieving financial independence?

The speaker has learned the importance of appreciating past investments, both financial and personal. They’ve also realized that health and relationships are long-term investments that provide great returns, far beyond just financial gains.

How has the pandemic influenced the speaker’s approach to spending and using money?

The pandemic taught the speaker that health, freedom, and travel are not guaranteed and can be taken away at any time. As a result, they are now more inclined to use their money to enjoy experiences and invest in things that bring immediate joy rather than postponing those uses for the future.

What is the speaker's stance on stock picking, and how do they feel about their own experiences with it?

The speaker recognizes the risks and complications of stock picking. They have a few success stories, such as investing in Nvidia and Apple, but in both cases, they regret not holding the stocks long enough. They emphasize that while stock picking can be profitable, it often leads to complications and stress.

How does the speaker plan to share more content with their audience in the future?

The speaker plans to publish more detailed content, including articles on learning how to spend money and a revised version of their 'Perfect Life' post. They are also considering transitioning to video content if they gain enough followers on YouTube.