My Story

INTRODUCTION
It’s Tax Time

For those of you reading this in the United States…have you filed your taxes yet? If you’re reading this when I publish this on Sunday, you have until midnight tomorrow.

Growing up, tax time was always tough for me. My dad helped 75+ families file their taxes, so I didn’t see much of my dad between January and April 15.

That is a big reason I’m so motivated to achieve financial independence. I don’t want ever to have work be an excuse for being absent from my kid’s lives. What’s your why?

THE INTERVIEW
My Story

So, I’ve spent the past many weeks focusing on other people’s stories. I realized I’ve not shared much about my story.

I came from a home that didn’t talk about money. By not talking about it…the most I received in financial education was opening a bank account and saving.

I didn’t know how much my parents made until I was applying for student loans.

I am not blaming my parents, but this set the tone for my early financial life.

Any money I made always burned a hole in my pocket. I spent a college semester and summer working an internship in Denver.

Looking back, I made great money for a college kid—more than enough to pay for my last year of school tuition and living expenses. Is that what I did?

Nope. I spent it on fun things, had to take out another student loan, and moved in with my parents.

When I finally graduated and landed my new job, I spent money I hadn’t earned yet to buy a brand new car because “I deserved it.”

My first aha moment came the week I started my new job. I was filling out all of the onboarding paperwork and had no clue what a 401k was, or a vesting schedule. I knew nothing about health insurance.

I turned to my newly adopted mentor and set on a path to learn as much as I could about money, finances, investing, etc.

I started budgeting (kind of). I started investing for the match.

But I still hadn’t changed my spending habits.

My second aha came after I was married when I realized we made “good” money, but were over $50k in debt and had nothing to show for it.

I started to focus more on changing habits. I started being more mindful of our money, and got serious about destroying our debt and building wealth.

I got caught up in some get-rich-quick schemes in an effort to expedite things, but soon realized that taking action and being patient were the key ingredients to building wealth.

Our journey to $1M wasn’t sexy or exciting. It was incredibly dull. However, I believe implementing mindful money habits and taking small steps was the key.

KEY LESSONS AND TAKEAWAYS
Imperfect Action

1. Limited Financial Education: I grew up in a household that did not discuss finances, which meant my early financial education was minimal, mainly focused on basic activities like saving. As fathers, it’s our duty to do better. Spend time teaching your kids about money.

2. Early Financial Mismanagement: I did not manage money wisely initially. This automatically added time to my journey. Start early and shorten the freedom journey.

3. Learning and Mentorship: My first significant insight into personal finance came when starting my first “real” job. It introduced me to 401(k)s and health insurance concepts. This prompted a learning journey with the help of a mentor. Don’t be afraid to ask for help and find a mentor.

4. Incremental Financial Improvements: Although slow to change spending habits, I began to make strides by budgeting. Imperfect action is better than no action. Don’t be afraid to start.

5. Avoidance of Quick Fixes: I experimented with get-rich-quick schemes but ultimately learned that patience and consistent action are necessary for financial success. If it sounds too good to be true….it is.

6. Building Wealth Gradually: The journey to a $1 million net worth was not glamorous but achieved through diligent, mindful money management and small, consistent steps. It’s a marathon, not a sprint.

These takeaways highlight the importance of financial education, the consequences of early financial habits, and the benefits of adopting a disciplined approach to managing money.