Investment. The way the FI (Financial Independence) community does it.

investIf you’re considering investing, here are some things that are important to have done or be doing before you do.

  1. Live on a budget. You’ll benefit greatly by spending your money on paper, before you actually spend it. Plus you’ll get to see where you’re money is going every month.

  2. Pay off all your debts. Get a copy of your credit report and pay off one at a time, starting with the smallest, working up to the largest.

  3. Now that you no longer have any debt, with the exception of your mortgage if you’re a homeowner, you need to build a 6 month emergency fund. That’s 6 months worth of monthly expenses, not 6 months of net income.

  4. Nooooow, it’s time to invest, and the folks in the FIRE movement (Google it if you need some insight) do their investment lean and mean. They invest with Vanguard.

And they invest 15% or more, (trust me, if you can put more in, do it.) into the VTSAX fund. It’s the Vanguard Total Stock Market Index Fund. It gives you broad exposure to the entire market. The fees are 0.04%. That’s INCREDIBLY low. The minimum investment to open an account is $3,000. I just opened my account today, in fact. And remember, give 15% into your investment monthly, follow your budget, stay out of debt and WIN WIN WIN with your finances!

Rob Loftus


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All great tips, however when it comes to investing, I believe in starting out from the get-go, even if it is with just a little bit.

Taking a balanced approach to finances means that one aspect doesn’t get overlooked in the long run.

For example, I could be really good at living on a budget but overlook paying off debt, or I could get really good at saving and never really learn to invest.

My mentor has taught me to take a balanced approach to every aspect of finances: budgeting, savings, investing, debt reduction and giving.

By working on all at the same time, your finances become much more balanced and that goes along with what my mentor says that “if you don’t practice a certain area of financial literacy now, you won’t practice it later”.

This is proving true in my own personal finances as I am getting closer to paying off my debt, at the same time, I have also set aside savings and have a nice sum invested. So that when the debt is gone, and the expenses are lowered, I can double down on the savings and investment areas.

Not trying to say what you said is wrong, just presenting a little bit of a different viewpoint. :)


@Rob Loftus Out of all the investment funds, please share why you chose Vangaurd’s Index Funds.

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