Why does it take so long?

How many more corners?


Personal finance, done well, is incredibly boring. Learn some simple concepts, establish good financial habits, and wait for twenty years.

Nothing seems to happen for ages, then you look around and everything has changed.

It’s kind of like watching a child grow up. You don’t notice as they gradually change each day, not until you see an old photo or someone comes to visit.

Or like improving your diet and upping your exercise levels (something I am trying to do at the moment). No changes for weeks or months, but one day you are slimmer or more toned.

So what are the simple concepts?

  1. Anyone can do it
    No matter how precarious or fantastic your financial situation seems to be, you can improve it. There is always something to try.
  2. It isn’t difficult
    Personal finance is not difficult. It is actually very simple. Many companies and professionals would like you to think otherwise, because then they can take advantage of you.
  3. You don’t need big wins
    Chasing after big profits is probably less useful than doing the right thing over time. It’s a lot like the tortoise and the hare.

And the habits?

  1. Spend less
    Be really conscious of what you are spending money on, and why. Is your spending making you happy?
  2. Earn more
    Get a better-paying job or do some freelance or part-time work.
  3. Save more
    Try to save at least 20% of your income. If you haven’t started saving yet, save 1%. Then next month try to save 2%.
  4. Invest
    Once you have an emergency fund (enough money to protect you from unexpected expenses) invest. Low fees, diversification, and time are your friends.

If you would like to learn more, read through the archive here, ask a question in the forum, or come to one of the upcoming RetireJapan events around Japan.

No one has all the answers but together we can figure it out.

4 Responses

  1. Ha, I’m totally with you on the boredom aspect, I actually wrote about this very same topic not so long ago ( http://howtoretireearly.net/heads-up-the-second-phase-of-your-path-to-financial-independence-is-pretty-boring/ )
    I like the comparison with kids growing up. I was thinking about that today on my way to work. It’s weird how one week at work seems like an eternity, but it feels like our 5 year old was born yesterday. So strange, how time is relative.

  2. I was updating my spreadsheet (do it on the first of the month) and noticed that we hit a new high (beating August last year). This is one of the joys of tracking in yen but having most assets in dollars 😉
    Crawling our way to freedom.

  3. I once let the boredom get to me, and thus went out to short-sell stocks which are experiencing sudden price spikes.
    Needless to say, I lost more than whatever was made. In hindsight, it was nothing but pure speculation.
    After that expensive lesson, I have learnt to totally ignore my brokerage account until it is time to DCA. Slow and steady will always win this race =)

    1. The temptation is always there… I think that’s why all the bloggers and writers I admire keep saying the same thing over and over again.
      We need to hear it every once in a while!