On Budgets Are Sexy, 80-year-old retired dentist Larry opened up about his career, his experience, and his money. Below, he's shared seven pieces of financial advice he's learned over eight decades of life.
1. Become familiar with the ‘future value of a dollar.’
Based on that, start funding your path to Economic Freedom to the maximum — NOW. Plan on kids’education and start funding that — NOW. That may cut into your discretionary spending, so you may need some sort of side hustle but it WILL be worth it.
2. Look at all the pros and cons before deciding where you want to live — utopia does not exist.
I know, I looked for it in Southern California, in Maine, in North Carolina, in Texas, in South Carolina, and in Florida. Built a house in each of those locations, and currently in my fifth or sixth house in central Florida. I cannot believe the money I wasted spent moving around the country. It was fun living in the different areas, but very costly.
Work is becoming less geographically dependent. Find a place where you can live with the trade offs — rent for a while and make sure you love it and then settle there.
3. Try to find a job you really enjoy doing.
Do side hustles if necessary to supplement your income, but make your primary occupation something you like to do.
4. Figure out what you are going to do for the next 40 years if you achieve ‘Economic Independence’ early!
I read a lot about “giving up Starbucks and retiring at age 35 with the money you save” type of stuff. But let’s say you are able financially to retire at age 40. What are you going to do with your life for the next 40 years? I would highly suggest that you live a bit as you strive for economic independence. How about — “Yea, I don’t have to go to work anymore BUT I WANT TO.” That way you continue to do something you love, but also make money without the stress.
5. Seriously prepare for the future, but also LIVE each day.
Want the thrill of driving a NASCAR race car, DO IT! I did!! Want to fly in an antique biplane — DO IT!
6. Develop some type of passive income.
Real estate, e-books or something that does not require your constant involvement. One can make decent living professionally, but most occupations require that you be there. In my case, if I was not there, there was no income but all the expenses continued. Develop some type of passive income whether it is real estate, or some other source of income. This will do two things: give you some inflation adjusted income, and take some of the pressure off the “required performance” of your assets.
7. When you are young, you can be much more aggressive in your investments because you have time to recoup any losses from a downturn.
Stay in the market during a downturn. You really lose out when it recovers if you are sitting on the sidelines.