Finance Stoic 5a – My purpose

What is my purpose in life? 

To teach.

To live a principled life.

To be a good father to my sons.

To be a good husband to my wife.

To achieve financial independence so that I can better achieve the above.

Financial independence thoughts

To achieve my goals, I need to work hard at my job.

I must continue to pursue adequate side hustles, such as blogging, writing a book with my sister, investing.

I must improve my focus on frugality and minimalism, recognizing that stuff is not as important to me as my children, my wife, or financial independence.

I must teach my children the value of a dollar earned and, more importantly, the value of a dollar saved:

  1. If you are in a high income tax bracket in Canada, and you earn $1.00, then you will pay 49 cents in tax and be left with 51 cents
  2. If you spend $1.00 less, then you will have $1.00

The power of saving is much more significant than the power of increased earnings. In fact, it’s roughly 100% greater.

When you own a business, this is even more pronounced.

Given the nature of fixed and variable costs, generally you may only achieve a 10% net margin. That is, for every $1.00 of revenue you will only end up with 10 cents in your jeans.

In that situation, $1.00 in savings is 10x more powerful than $1.00 in earnings!

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