The Temple of Apollo at Delphi has a phrase carved into it. Its translation? Know Thyself. The Greeks knew it over 2,000 years ago! While I don’t think there is one way to achieve financial independence and wealth (regardless of what those terms mean to you), I do believe there is one common denominator of those that actually meet their goals. It is all about knowing yourself and either protecting yourself from…yourself, or, alternatively, encouraging those good qualities you may have.
The world is what it is, and there are very few people that will be able to change the world, so most people have to adapt.
How does this Apply to Personal Finance?
For example there are 2 camps when it comes to using cash only vs. using cards. I know I can’t carry cash on me, if there is cash on me it is gone, and I am not one of those people that spend more when using a credit card. Failing to understanding where you land could be a crazy money vacuum.
I know I need automation in my life, and what is more automated than a 401(k)? Even if there is no match sometimes a 401(k)s are better than IRAs based on many factors, but the biggest one for me is that the paycheck comes in net of that contribution. Further, I have to go talk to my HR person to tell them that I need to stop my retirement savings.
The HR discussion that I want to avoid, is an example of a Personal Finance roadblock that I know I need. Specifically, one of the biggest benefits of using ING for me, at least, is the fact that to get to the money I have to sign online and make moves. For big purchases, I get a cool down period for the money to hit my main account.
Do you know yourself when it comes to running your money life?