In the world of F.I.R.E (financial independence, retire early), it may seem like everyone is constantly checking their net worth. Pulling up bank statements on one screen and begrudgingly yelling at their credit card statement on their cheap and frugal desk. However for the most successful financial minds this couldn’t be further from the truth. The real key to a great financial state of well being, is being able to enjoy life outside of the financial world. For the novice the urge to constant check brokerage accounts, bank balances, etc. is great, but over time one must learn to put the phone down and start to enjoy this new minimalist lifestyle.
If your a trader being able to “turn off” the finance portion of your brain for a short while is key. Always being “on” will stress anyone out and in the world of trading where one bad trade can ruin you it’s important to keep your stress levels as low as possible to avoid a bad trade. But if your a regular Joe that is worried about actually retiring not always being “on” will allow you to not make impulsive decisions in regards to financial instruments.
In my own experience there have been a great number of trades and things that I have bought because I was stressed out about my finances. I have panic sold many stocks that ended up going through the roof if I had only just held. Although I suppose there is a positive to that, it taught me a lesson about how holding a great company is much better than trying to day trade.
Also not to mention that while minimizing costs is great it also unintentionally serves as a distraction from the main goal of working, which is making money. I mean, having a financial mind is great, but constantly analyzing everything in dollars and cents gets a bit tiring and to be honest it can burn somebody out really quickly and cause them to get of the financial independence train all together. Perhaps it is helpful to think F.I.R.E as a diet. Go too strict and you’ll never stick with it, however if your not comitted then sticking with it will have no effect either. It is important to find that perfect balance between minimalism and actually enjoying life from time to time.
Disclaimer: I am not an investment or financial advisory professional and this should not be considered financial advisory or investment advice. Any financial decisions should be made with the input of a trusted professional.