Show 69 - Maintaining Financial Goals with Rashad Muhammad
In this episode, I talk with Rashad Muhammad about how to keep to your financial goals by spending within your means and not moving the goalposts.
1/22/20251 min read
When you make an average income it can be very tempting to take your raise and put it to living a “better life”. This can be very detrimental for two reasons. 1. It takes the money you could invest and instead uses it for current wants. And 2. It increases the amount of money need in retirement to maintain your lifestyle. Naturally, you want to be comfortable but don’t neglect your retirement at the same time. Rashad Muhammad and I discuss how you can do this in this latest episode.
Show Notes
Recommended Books (Amazon Affiliate Links)
Key Ideas
Financial security comes from having lower expenses more than higher incomes.
Master your spending first and then you can use your raises more effectively.
Avoid life style creep. Put your raises towards investing, not wants.
The key is to live below your means. If you can handle that you can do anything financially.
Bonus Tip
Here is a bonus tip I didn't get to in the episode.
A bonus tip we didn’t get to in this episode is if you are still feeling pinched every month after getting your finances in order, a great way to increase your breathing room without neglecting your retirement investing is to put half of your raise toward retirement and half toward your wants. This gives a middle ground between life style creep on one hand and full on investing on the other. The key though is to know when to stop inflating your life so you will have enough in retirement.