Welcome to my personal finance blog. This blog will be dedicated to my (and my wife’s) journey towards financial freedom.
First, let me define for you financial freedom. To me, financial freedom to me means having the choice of what it is you work on. So that is a pretty broad-based definition to start and is semi-ambiguous. Let me explain a little further. I think that financial freedom involves having money coming in from multiple sources, passive and active. The active sources involve projects or work that I actually enjoy doing. So being able to pick and choose what it is I spend my time doing in what financial freedom means to me. Financial freedom IS NOT spending 40 hours a week in my cube doing someone else’s bidding. This is my current definition, it is certainly subject to change.
Next, let’s briefly talk about who I am. My wife and I are mid to late 20 somethings living in the Midwest. We are both in the business world, more specifically the Internet in a marketing capacity. We are both college graduates and make decent money.
That said, let me talk a little bit about my philosophy when it comes to money and wealth. I firmly believe in controlling what you can control. So my wife and I focus on the expense side of the cash flow equation. Income – Expenses = Profit. We have some control over the income side in that we can increase earnings from our jobs, start businesses, invest, etc. But we have more control over the expense side and focus a lot on keeping expenses down. The lower our expenses the less money it will take monthly to cover them. So a big part of our philosophy is to keep expenses down.
In our household, I handle all of our investing since I love doing it and my wife doesn’t. Since we try to save most of the dollars we earn, we will have some money to invest. Right now our focus, however, is on building an emergency fund. But my investing philosophy (for my Roth IRA and soon a taxable account) really is a value based approach. I prefer to buy well-known brands that have a history of paying dividends and increasing the dividend. I prefer to buy these companies when they are low-priced and are yielding a historically large percentage. I sometimes will invest in the special situation such as a deep value, spin-off, merger, etc. I have been a student of investing for quite some time (relatively speaking), probably the last 7 years, which is why I feel qualified to invest in individual stocks.
The last thing I will mention is that I think it is important that my wife and I develop some additional sources of income. Obviously, dividend income could be one source, but I’d like another source or two as well. I like to write and think that I could perhaps eventually publish some things. My wife likes to bake and decorate cakes, so that could also be a source of income. The ideas for income are still under development at this time, so right now we are relying on our jobs.
My goal for this blog is to just detail the journey I am talking. Talk about what is working, what is not, ideas I have, investments I make (or am thinking about making) etc. I to share ideas with others and also learn a lot from those who are interested in the same things that I am interested in.