Comments on: The Most Important Thing to Get to FI is… http://blog.canadian-dream-free-at-45.com/2009/07/15/the-most-important-thing-to-get-to-fi-is/ Wed, 08 Feb 2012 17:31:40 +0000 hourly 1 http://wordpress.org/?v=3.1 By: Links From Around The Web – July 18, 2009 | MoneyAndWealth http://blog.canadian-dream-free-at-45.com/2009/07/15/the-most-important-thing-to-get-to-fi-is/comment-page-1/#comment-30051 Links From Around The Web – July 18, 2009 | MoneyAndWealth Sun, 19 Jul 2009 15:47:42 +0000 http://blog.canadian-dream-free-at-45.com/?p=842#comment-30051 [...] CanadianDream explains why Managing Your Cashflow is the Key to Financial Independence [...] [...] CanadianDream explains why Managing Your Cashflow is the Key to Financial Independence [...]

]]> By: The first RR Top 5 | Realizing Retirement http://blog.canadian-dream-free-at-45.com/2009/07/15/the-most-important-thing-to-get-to-fi-is/comment-page-1/#comment-29965 The first RR Top 5 | Realizing Retirement Fri, 17 Jul 2009 12:29:17 +0000 http://blog.canadian-dream-free-at-45.com/?p=842#comment-29965 [...] to Canadian Dream: Free at 45, The Most Important Thing to Get to FI is… you’ll have to click-through to find [...] [...] to Canadian Dream: Free at 45, The Most Important Thing to Get to FI is… you’ll have to click-through to find [...]

]]> By: Sean http://blog.canadian-dream-free-at-45.com/2009/07/15/the-most-important-thing-to-get-to-fi-is/comment-page-1/#comment-29881 Sean Wed, 15 Jul 2009 14:24:20 +0000 http://blog.canadian-dream-free-at-45.com/?p=842#comment-29881 This is definitely something I concentrated on at the start, after reading about David Bach's "Latte Factor" in the Automatic Millionaire. Besides that, my most important lesson so far is: "Pay yourself first". It's definitely the best way to get yourself living within your means. If you can't do that, you'll never be financially independent! This is definitely something I concentrated on at the start, after reading about David Bach’s “Latte Factor” in the Automatic Millionaire.

Besides that, my most important lesson so far is: “Pay yourself first”. It’s definitely the best way to get yourself living within your means. If you can’t do that, you’ll never be financially independent!

]]> By: Ben http://blog.canadian-dream-free-at-45.com/2009/07/15/the-most-important-thing-to-get-to-fi-is/comment-page-1/#comment-29875 Ben Wed, 15 Jul 2009 12:58:03 +0000 http://blog.canadian-dream-free-at-45.com/?p=842#comment-29875 Always been a big fan of this concept. Managing cashflow (ie. spending less than you earn), is the first and most important thing to get straight, and can really drive net worth increase in the early years. It is of far less importance to agonize about Fund A or Fund B, and worry that you only got 8% when the TSX got 10%. On small portfolios, this difference is peanuts. There is however a danger in focusing for too long on getting the cashflow management down to a science, and delaying the cultivation of investment knowledge. The years they pass, and one needs to start making the effort to learn at some point. To play devil's advocate a bit, it might well be better to learn as much about investing when you have no money, and get your hands burnt learning the hard lessons when you've got little to lose, rather than waiting until you've got tons of money and can't afford to lose it, or the mistakes are amplified. Somewhere in the middle lies the happy medium. Always been a big fan of this concept. Managing cashflow (ie. spending less than you earn), is the first and most important thing to get straight, and can really drive net worth increase in the early years.

It is of far less importance to agonize about Fund A or Fund B, and worry that you only got 8% when the TSX got 10%. On small portfolios, this difference is peanuts.

There is however a danger in focusing for too long on getting the cashflow management down to a science, and delaying the cultivation of investment knowledge. The years they pass, and one needs to start making the effort to learn at some point.

To play devil’s advocate a bit, it might well be better to learn as much about investing when you have no money, and get your hands burnt learning the hard lessons when you’ve got little to lose, rather than waiting until you’ve got tons of money and can’t afford to lose it, or the mistakes are amplified.

Somewhere in the middle lies the happy medium.

]]>