Lessons Learned From Reading Personal Finance Blogs
Lessons Learned From Reading Personal Finance Blogs
As I have mentioned in my origin story, by the time I started reading personal finance blogs, I was already a millionaire. Already financially independent. comfortably so. For the most part, I had accomplished many of the steps prescribed in the “how to” posts I so often enjoy reading. I had a high income producing business, a bevy of side hustles, and a stable investment portfolio. So it may surprise you that there are still several lessons I learned from reading personal finance blogs.
These lessons may not have jet rocketed me to financial independence, but in many ways saved me time, money, and hustle. Financially independent or not, there is a range of knowledge to be had on all sorts of subjects. Here are a few things that I found incredibly valuable.
No One Will Manage Your Money As Well As You
Back in 2014, when I first discovered The White Coat Investor, I had millions of dollars in the stock market. I owned stocks, bonds, mutual funds, and etfs. I met with my financial advisor quarterly and watched as my net worth grew.
And I had no idea what any of it meant. Sure, I knew the names and the stock symbols. But I had invested almost no time in understanding asset classes, diversification, expense ratios, etc. I was so ignorant, that I would probably have done just about anything my advisor suggested. I was very lucky, in fact, that I had chosen someone who was truly watching out for my best interests. Although I now know that the mix of stocks was somewhat suboptimal, and the expense ratios were too high, I generally was treated very well. My returns were below the market, but not too far.
A quick read of several blogs including Jim Collins’ stock series, showed me that when it came to investing, I could keep it simple. I left my advisor and moved everything to Vanguard. Investing in a Lazy Portfolio takes minimal time and thought to maintain.
I now match market returns without that pesky assets under management fee.
Are You Overinsured?
Like most professionals with a family to support and an eye on the future, I spent some time and money insuring appropriately. There are several areas of our life that require a little extra protection in case things go wrong. Before reading PF blogs, I had already made most of the right decisions. I purchased several policies:
- Term Life Insurance
- Group Disability Insurance
- Individual Disability Insurance
- An Umbrella Policy
- Long Term Care Insurance
One of the major lessons learned from reading personal finance blogs was that I was overinsured. Although obvious to me now, there was no reason whatsoever to have life, disability, or even long-term care insurance after becoming financially independent.
Why pay for it when you can self insure?
When Enough Is Enough
I had asked several people in my life about when I could retire. The accountant said 10 Million. My financial advisor wouldn’t give a number but said that I wasn’t there yet. My mother said a few million more. The truth is, although I had perused several retirement calculators, none of them explained the reasoning or clarified the assumptions that fit my current lifestyle.
Like many of you, reading Mr. Money Mustache”s article The Shockingly Simple Math Behind Early Retirement, changed my life. Using the 4% rule and 25X gave me the most clear and understandable thumbnail of what I needed to save based on my spending. Certainly, I have added my own particular permutations to the calculations, but the basic principle remains.
In Conclusion
There are many lessons learned from reading personal finance blogs even long after I have achieved financial independence. The great thing about this community is it encompasses writers and readers at all levels on the financial ladder.
Before 2014 I thought I had it figured out. I am so glad that I was wrong. My eyes have been opened to a whole new world of optimization, frugality, life hacks, and investing.
And it all started with the click of a mouse.
What have you learned from the personal finance blogosphere? Did it accelerate your path to FI? Have there been any negative consequences?
When I first stumbled across Mr money mustache, I had no idea how much we would need. I knew that we were saving over half of what we got, and paying off loans We had just got out of car loans, and had bought our home with a PMI. 2.5 years later, things are way different, thanks to his blog.
I think many of us started with MMM.
Great post DocG. I was financially independent also when I discovered WCI and MMM. I left Merrill Lynch and transferred it all to Vanguard. I got a financial plan from Vanguard and realigned to indexes. I still have some items with large capital gains that are not ideal but I keep. I think reading WCI psychologically helped me do this. MMM opened my eyes to anti-consumerism. I was guilty of over spending on brands and I really decreased this. The biggest thing I have learned from Physician blogs is that I am not alone in wanting to figure this out and do it myself.
Hatton1, I think you and I are on a similar path. I agree, reading gave me the confidence to go it on my own!
It’s also great to be a part of a community of like minded people, at a similar stage in one’s career.
Agreed. VagabondMD…I know you are pretty active in the WCI forum. That seems like a great place to build that community!
The main thing I learned was from Hatton’s site of getting my retirement withdrawal sequences down already. Thanks Hatton!
Hatton writes great stuff!
I was already FI before I knew it was a thing. And I’d already quit my job before finding MMM. What is it that makes these articles interesting and educating? I enjoy reading posts that motivate me and push me out of my comfort zone, yet supply logic and reasoning along with humor. Posts that make me think about my most precious asset — time.
For example, some of my favorite posts of yours have been “Range Anxiety” and “When the Thrill is Gone” and “What Money Can’t Buy”. I enjoy Gratitude Day.
Thanks Susan. I was feeling a little bruised today. Your words brought me up!
Hello DocG,
I guess I forgot to mention that you helped me rethink starting up my own practice again. That was what I was suppose to do this fall. Now I am rethinking that and opening my mind to other forms of practice.
And that is a huge change in my thinking process. So serious thank you for that.
Wow MB. That’s the greatest compliment you can give to a writer/blogger. Thank you for reading! Best of luck!
I had a similar situation. I was financial independent, managing my own funds, and had written a book before I discovered bloggers. The blogging thing was new to me when I started my blog. Recently WCI convinced me to monetize my blog. I’m learning lots of new things, even in the areas I already know about. You should never stop learning.
Dr. Cory S. Fawcett
Prescription for Financial Success
I should mention that along with reading blogs, every physician should have a copy of your three books as well as Jim’s. It’s great to have all those resources in one place!
Thanks for recommending my books. My hope is that every doctor has access to them. Having the right information at the right time can change your life. It has happened to me in the past. I’m retired early today because of something I read 17 years ago. Keep reading.
I couldn’t agree more!
Like you and others I was already FI when I discovered the community, or very very close. But I’ve still learned tons. Lots of life hacks, lots of frugal tips, and my favorites are the “life lessons” and stories that you and others tells so well. There’s always a relate-able nugget or something to take away from a good story.
Relate-able, and just as important, actionable! I feel like I’ve learned so much.
I didn’t really start reading finance blogs until three years ago. Since then, I can’t get enough. I learn something new everyday. Your posts are always fun to read.
Thanks MD. So much great info out there to learn.
I’m in total agreement – although my finances were not horrible previously, once I found the FIRE community and started scouring the resources online I’ve streamlined everything and now have a specific goal in mind. I understand where I need to be and can focus all aspects of my life on achieving FI. Thanks for the insightful piece!
Cammie, we have all been exactly where you were. I was. Our finances weren’t too bad, but not great either. Thank g-d for all the great info out there to help us!
I’m surprised your accountant said you need $10 million to retire! That’s a huge number 🙂 You’re right that no one manages your money better than you. Sometimes I find it surprising that there’s so little regulation and education for financial advisors- money is almost as important as health (especially money that one has toiled to earn).
I know. 10 million is a lot of money! And totally unnecessary.