Now Is The Best Time To Pursue Financial Independence

With everything closed, I have been holed up at home over the last week.  I have not been eating out at restaurants because they are all closed.  In fact, my lady even attended a happy hour birthday party for a friend over a Zoom call with wine in hand and I just played poker with 4 friends over an internet connection.  Yesterday I gave myself this haircut using my trusty clippers: 

I have not used my car in days, and we have not bought anything because that would require going to a store full of coughing infectious zombies.  Stay six feet away! 

Yes it kind of feels like I am in a George Romero movie movie but, on the bright side, I have also saved a crap load of money.  I write quite a bit about Adventure, Happiness, and Successful Habits.  However, the detonator for blasting my way out of the maze came from the thing that I have perhaps written about most of all: Financial Independence.  If you have been reading this site for some time but not yet taken the steps to put yourself on a path toward financial independence, then I am doing a horrible job.  However, right now is by far the best time in the last decade to start.

Now Is the Time To Practice Spending Less

Like me, you have probably already reduced spend as a side effect of the Coronavirus social distancing.  Rather than go to a gym, I have been running and biking outside.  Rather than going to events and shows, I am enjoying nature.  I have been writing music, and appreciating time with family (when I do not feel like murdering them from cabin fever).  

Yes, this imposed level of reduced spend is uncomfortable and for health reasons, however, in a way it is an opportunity to prototype some thrifty life changes and commit to the ones that work for you.  Frugality does not need to be a deprivation when you choose what areas to cut from.  It actually frees up more cash for the things you love and can empower you with options in the form of cash in the bank (or better yet, money in an investment account).  It is freeing to know that you can be content with less.  When practiced, frugality can feel good like the way you feel 10 minutes after eating a salad as opposed to the way you feel 10 minutes after eating a bucket of fried chicken.  Looking for a place to start? Here are 80 ways to spend less.  

Now is the Time To Make a Change

You may be stuck working from home and unable to go out with your free time.  However, this could be the perfect time to make a change.  If you don’t know how much you spend per year and where that money goes use this time to find out.  Sit down, relax, and go through your numbers. It might open your eyes.  Holy $&#!, I spent how much drinks!?  Those $12 moscow mules are killing me.  Even though it is not as entertaining as queuing more Netflix, you’ll thank yourself for putting in the effort.

Once you know opportunity areas, what about setting some spend goals or putting together a budget?  Even setting some basic spend alerts on your credit card can go a long way to creating a system that will have you sitting on a beach in 10-15 years while your friends are lamenting that they can’t seem to get ahead.  

Now Is the Time To Prepare To Invest

If you already understand your spend and are working on areas to save more that is awesome!  You are on your way!  How does your emergency fund look?  Many of us may find ourselves out of work due to this economic shock and need a safety net.  If you already have a comfortable safety net to cover several months of expenses let’s talk about investing. 

I know you may be thinking “why would I want to invest when the market is losing up to 10% each day?”  The answer is that this may be creating one of the biggest buying opportunities of your lifetime and you need to be ready to invest.  The market has proven itself to be a huge wealth creation machine over the last 90 years.  There is likely an opportunity to buy in very low in the coming months. 

Do you allocate to your 401K or Roth?  If not, now could be the time to start getting that money in there so you are ready to put it into broad index funds when you feel the time is right.  Do you already max out your 401K?  Great, what about opening an investment account for extra money sitting in a bank account?  Some brokers even give you free money for opening an account and putting money in (e-trade is one but google for yourself).  As I write this, the US stock market is around 30% cheaper than it was a month ago.  Some diligence spent today could possibly result in hundreds of thousands of additional dollars in your retirement account down the road. I am personally laddering in money starting right now a little more each time the market falls and will likely write more on this in the future.

Why Now Is The Best Time To Pursue Financial Independence

If you have been reading this site but not started your financial independence journey, now is the best time to start. If you are already well down the path consider sharing this article with someone who could use a nudge. For god’s sake why not? Many of us are sitting at home with time on our hands to look into our own money and investing. Many of us are also already practicing frugality as a side effect from social distancing.

Times like this may feel scary and isolating but I offer up this article in a lighthearted spirit for levity.  However, on a serious note, whenever I am confronted by possibilities of illness or even death, it makes me think about my life and what is really important.  What do I want to change?  While no one yet knows the extent of the impact of the Coronavirus, I do know that it will eventually pass.  Fear can shake us in life but can also be harnessed into self reflection.  Self reflection can be the beginning of transformation and planning for your better future.

Be well over the coming weeks and reach out to your loved ones while we are all more isolated at home.  A video call can really brighten your day and someone else’s as well.  I have seen my family and friends’ faces light up when they answer my facetime 😉