By Dr. Erik Hofmeister, WCI Columnist

We achieved financial independence three years ago. Even though we kept working for a couple of years, I remember some changes that happened almost immediately. I’ve read hundreds of blog posts and numerous books, but it was quite remarkable to discover the difference between aiming for FI and reaching FI. I have two math lessons and two psychology lessons to share with you.

Let’s start with the math lessons.

 

The Math Lessons of Reaching Financial Independence

Here’s what I thought about as we approached financial independence.

 

Should You Have a Cash Cushion?

A cash cushion is a bundle of money you have in very safe investments that you can spend in the event of a market downturn, theoretically minimizing the effect of sequence of returns risk. The writers at Our Next Life have a three-year cash cushion, for

Keep reading this article on The White Coat Investor.

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