I’ve made my share of mistakes. But there are two bigs ones that many people make that I managed to avoid.
These are the two:
- Buying more house than you need; and
- Buying more car than you need.
To be fair, I’ve always bought more house and car than we needed. But I never went hog wild; we always bought less house and car than we could have afforded.
It’s not that I have anything against those things. If that’s what people want to spend their money on, that’s their choice. I have no objection.
However, neither purchase is conducive to financial independence — unless you’re so wealthy you have money to burn. Which I don’t.
Obviously, you can buy whatever you want, Vera. But if you make the same mistake as many other people have — spending a lot on your house and cars — then expect to have to work longer. And to be in debt longer. And to have less financial independence. Less freedom.
It’s basic math. It’s no more complicated than that.