How my emergency fund allows me to be a great investor

Passive Investing.
Passive Investing.
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The key to becoming a great investor is to do nothing. Well, not quite “nothing,” but as close to nothing as is possible when it comes to investing.

Here is my investment strategy that allows me to receive better returns than the majority of investors, even high-powered Wall Street investors;

I buy a handful of low-cost, passively managed index funds, and I never sell under any circumstance.

I ignore what’s happening in the market on day to day basis. It’s irrelevant. I stay the course and continue buying as much as I can and never selling.

Long term, buy and hold index investing is the closest thing you can find to a “sure thing” when it comes to investing. …


We need to retire the “pull yourself up the bootstraps” narrative in personal finance

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I’ve been writing about money and personal finance for nearly three years, and in that time, I have read a lot of bad takes on finance. The worst being that becoming wealthy is as simple as deciding that you want to be.

We have all seen headlines like “5 Things Rich People Know That Poor People Don’t” or “3 Mindset Changes That Will Take You from Poor to Wealthy.

These articles and headlines make me cringe for two reasons.

First, when you click on these headlines, you’ll most likely find crappy articles filled with platitudes that the author copied from a more well-known writer. …


Money Meets Passion

Financial Freedom > FIRE

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The idea behind retirement and the Financial Independence, Retire Early (FIRE) movement is to have enough money saved and invested that you no longer need to depend on your paycheck to fund your lifestyle. I believe that financial independence should be the goal of those in the FIRE movement and not early retirement.

One question many people ask is if you need to be able to completely live off your passive income to be considered financially independent?

No. Financial independence is about funding your lifestyle while pursuing your passions. If your passions can generate reliable income, you can fund your lifestyle through a combination of investing and doing work you love, making you financially independent.


Plus what to do after you have $1M & Five Money Challenges

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Photo by Jonathan Kemper on Unsplash

Welcome to the Making of a Millionaire weekly newsletter, where we highlight the latest and greatest content we have to share with you.

A Side Hustle Is Not an Emergency Fund

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Written by Ben Le Fort

Last month I crossed a subtle but meaningful financial milestone; I made enough money from my side hustle to cover all of my living expenses, including my savings goals.


But it can be used to build an unbreakable financial defense

A business man wearing a jet pack.
A business man wearing a jet pack.
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Last month I crossed a subtle but meaningful financial milestone; I made enough money from my side hustle to cover all of my living expenses, including my savings goals.

That means that even if I were to lose the income from my day-job, my lifestyle would not suffer. This led me to think is someone needs an emergency fund if they have a side-hustle that can cover all of their living expenses?

Yes, you need a fully-funded emergency fund even if you have a profitable side-hustle that can cover your living expenses.

This article reviews how to think about an emergency fund when you have multiple streams of income and the financial security and freedom that a scalable side hustle can provide. …


Taking control of my finances helped keep my financial anxiety in check

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We live in a strange time in human history. With all of the complex challenges we face and opportunities before us in the world, we spend an inordinate amount of time worrying about petty issues like how much people spend on coffee.

In this article, I’ll review my experience with the “latte factor,” why I used to think it was a big deal and why I moved past it. …


Digital Entrepreneurship

The difficult balancing act of the part-time solopreneur

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One of the most difficult aspects of being a solopreneur is passing up on “good” ideas so that you can pursue the “great” ideas. This is especially true if you are a solopreneur who still has a day job.

The two most precious resources for any solopreneur is time and energy.

In this article, I want to share how an idea to diversify nearly destroyed my business and why I course-corrected and opted for a smarter way to diversify that is aligned with the true purpose of my business.

Diversifying and stacking my income has helped me build wealth

The error I made was “over-diversifying” while searching for more income streams and spreading myself too thin. …


A Burning Question

This simple equation can tell you when you will run out of money given your current level of spending

An empty bank vault.
An empty bank vault.
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One of the most important financial planning questions is, “how long will my money last?

There are two obvious areas where the answer to “how long will my money last?” has massive implications for your day-to-day life.

  1. When you have lost your job.

The scariest question in personal finance

Unless you can cover your living expenses in retirement through some combination of pension, annuity, or income generated from your investments, you will need to begin eating into your principal once you retire. …


Answering your weekly mailbag questions

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Welcome to the weekly mailbag column from Making of a Millionaire, where our editor, Ben Le Fort, answers your personal finance questions.

If you want your question featured in an upcoming article, leave your question in the comments below or send Ben an email at info@benlefort.com with the subject like “mailbag question.”

This Week’s question comes from James in Toronto, Canada.

About

Ben Le Fort

Sharing personal finance lessons I’ve learned on my journey from debt to Financial Independence. Creator of the 30-day money challenge: https://bit.ly/3pogKSj

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