Psychology of Financial Independence part 1 (Values-based Spending)
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One of my favorite FI posts of all time is called “Becoming a Saver” from Living a FI blog. The post explores how the author changed their mindset from being a spender to becoming a saver and enjoy saving money. It takes the reader on a detailed journey through the author's thought process, explaining how he came to realize that overspending was not aligned with their ultimate goal of achieving freedom. My favorite part of the post is when the author realizes the incongruency of his actions with his life goals. I love the article and recommend it.
Photo by Miquel Parera on Unsplash
Relatedly, Samon sent me this great article about an NFL player who is taking intentional steps to save money despite earning millions. My favorite quite comes at the end:
“Everybody is caught up in image, and looking a certain way, being rich. It's pointless.”
In the Firedom book, we call saving with intentionality values-based spending. We talk about it as a partner strategy to revenue maximization, which is the process of increasing your income. Combining maximizing your income and minimizing your expenses is the key to financial independence.
I'm a fan of pursuing both strategies simultaneously vs overly focusing on a single strategy (watchout for my next post just on revenue maximization). Here is a clip from Firedom chapter 6C (“Principles of Revenue maximization & Value-Based spending”) where Samon talks about this:
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Thank you!
Olumide Ogunsanwo
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