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"Your Money or Your Life", the book on Financial Independence. I've had it on the shelf since the 90's, and at the time it was a big help in changing my views on work & money, and getting on the path to "FI"
Now, twenty years or so later, I've skimmed through it again. A lot of the program still holds up, regarding frugality and lifestyle choices. However, with the benefit of hindsight, I can see that there were some basic financial assumptions and strategies that just don't hold up in the current economic climate.
One is inflation. The book, written in a period of fairly high inflation, countered that it wasn't really that bad, and investment returns would more than cover it. Another was that your capital, to be 100% safe and guarantee enough income, should be in US Treasuries- and that you could expect a return of 6-8%, 5 at a minimum.
Well, though we supposedly have low "core" inflation now, the reality is health care costs, gas, food, and many other costs are increasing at double-digit rates. For many years now, you'd be lucky to get 3% on a gov. bond.
So I think, while the basics of keeping track of your spending, frugality, etc. are still valid, new strategies are needed to be "FI" in the modern economy.
Now, twenty years or so later, I've skimmed through it again. A lot of the program still holds up, regarding frugality and lifestyle choices. However, with the benefit of hindsight, I can see that there were some basic financial assumptions and strategies that just don't hold up in the current economic climate.
One is inflation. The book, written in a period of fairly high inflation, countered that it wasn't really that bad, and investment returns would more than cover it. Another was that your capital, to be 100% safe and guarantee enough income, should be in US Treasuries- and that you could expect a return of 6-8%, 5 at a minimum.
Well, though we supposedly have low "core" inflation now, the reality is health care costs, gas, food, and many other costs are increasing at double-digit rates. For many years now, you'd be lucky to get 3% on a gov. bond.
So I think, while the basics of keeping track of your spending, frugality, etc. are still valid, new strategies are needed to be "FI" in the modern economy.
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