Longevity

Financial independence may or may not be your goal.  It may be a lever or an escape hatch.  Regardless of its place in your life plan, I have tried with this blog to build a tool box and thoughtfully think about what skills and hacks are available to speed one’s path.  These include techniques like front loading and bursting, and personal qualities such as persistence and telling yourself the right story.   The big idea is that given the right starting ingredients and a few skills mixed in, reaching financial freedom should be a forgone conclusion.  Should be a foregone conclusion, that is, if one specific criteria is met.  Longevity.

A close cousin to persistence, longevity is the ability to keep your head up and stick it out.  With a little bit of luck and a lot of time, you will reach your goals whatever they are.

Employment

There is a simple path to financial independence.  Earn, save, and invest.  Although it is quite straightforward, it is not always easy.  Earning is a life long battle that starts with our first job and ends the day we sell our last stock and piece of real estate.  The longer one accumulates money, the longer it will last.

We are all aware of the power of compounding.  The magic ingredient, however, is longevity.  We have to continuously toil to create the fodder for compounding to do its job.  The longer you work, the more you will save, the more you will have left over to invest.

Work longevity brings numerous benefits.  Not only do earned wages but also experiences and expertise compound.  the longer in one’s chosen field, the more likely they will move up the ladder and earn more money.  The more likely they will go into business for themselves or pivot towards greater fortunes.

Investing

We spend a lot of time in our community arguing about index funds verse individual stocks.  We talk about the difference between investment and speculation.  But the truth is, a reasonably allocated portfolio will not live or die on the stock itself or even on the expense ratio.  These are just minor tweaks.  the key to making money in the stock market is an overall belief that the American economy will grow, and, of course, longevity.

I don’t care if you buy IBM or VTSAX, put your money in the market and leave it for a few decades and you will mostly be rewarded.

Although this sounds counterintuitive, it is investing and longevity that actually bring returns. That’s why it kills me to watch people hold on to their money for long periods trying to time the market.  Today’s high will look like mince meat in a decade or two.

Do you really want to miss out on all that growth?

Side Hustles

Whether real estate, a lazy side hustle, or writing a blog, success comes after years of trials and tribulations.  There is nothing flashy about this.  Although we have our fair share of overnight successes in this community, most of us have had to grind away for years to even break the seal.

Properties often have lousy returns in the beginning, and true success usually comes after years of paying down equity, collecting rents, and appreciation.

Your side hustle is likely a passion play, and only after showing up day in and day out might it start generating revenue.

And writing a blog may only become revenue positive after years of building an audience , collecting emails, and pushing free giveaways.

Success favors longevity.

Final Thoughts

Sometimes we get caught up in the financial independence movement with sudden success.  We see a friend buy ten properties in a year or start an award-winning blog that generates revenue within six months.  Although these things happen, for the most part, winning is a function of persistence and longevity.

Whether employment, investing, or side hustles, your chances of success increase greatly with time.  So don’t quite in the beginning if things don’t go just right.

Keep your head up.