I keep reflecting on how incredible 2024 was. With the S&P 500 up 23%, Bitcoin surging, and residential real estate climbing in most of the country, personal finance enthusiasts have had an amazing year. The investment gains almost feel like free money—and who doesn’t love getting something for free?
With the return of volatility, we must practice gratefulness. The good times never last forever!
If you read Financial Samurai and subscribe to my free weekly newsletter, there’s a good chance you’re a personal finance enthusiast. Instead of spending eight hours watching sports over the weekend, you might find reviewing your net worth allocation and optimizing your investments far more entertaining. How unique and lucky.
Back in March 2020, when pandemic lockdowns began, if someone told me that five years later the stock market would be up ~85%, real estate up ~30%, and Bitcoin up over 1,000%, I’d have had a hard time believing it. Sure, I was bullish on asset prices at the time, writing posts like How To Predict The Stock Market Bottom Like Nostradamus. But I wasn’t that bullish.
Yet here we are, so much wealthier! By staying engaged with our personal finances, chances are high your net worth is near or at an all-time high. With investment gains far exceeding historical averages, we have significantly outperformed the masses who don’t take an active interest in building wealth.
How Personal Finance Enthusiasts Build Their Own Luck
Here are seven reasons why I believe those who religiously dive into personal finance books, sites, and podcasts create more luck and live better lives than those who don’t. Of course, we're not always going to get things right. Mistakes will be made. Money will be lost. However, our million-dollar mindset is what sets us apart from the crowd.
Million-Dollar Mindset #1: More Optimism, Less Worry = Better Mental Health
As personal finance enthusiasts, we’ve studied the history of bull and bear markets. We know bear markets, defined as a decline of 20% or more in a major stock index like the S&P 500, occur roughly every 4 to 6 years on average. When they do occur, the last for about 9.6 months on average. Knowing that neither lasts forever keeps us measured during both the worst and best of times.
We’re also less prone to FOMO that can derail less informed investors. We understand how to properly allocate assets based on our risk tolerance. We usually avoid taking unnecessary concentration risk or leverage that could blow up a portfolio.
In real estate, we negotiate smarter deals and follow sound purchasing guidelines that maximize joy while minimizing financial stress. Writing real estate love letters to make a connection and learning how to skillfully negotiate terms becomes second nature.
When it comes to retirement planning, we have clear net worth targets by age to keep us on track. We enjoy running withdrawal rate simulations to ensure long-term financial independence. By preparing for “what if” scenarios and learning from the success stories of others, we approach life’s uncertainties with confidence. For instance, having a plan for market downturns allows us to stay calm while others panic-sell at the bottom.
This level of understanding makes us better equipped to deal with both external shocks, like a pandemic, and personal challenges, like a job loss or unexpected medical expense.
If you'd like to run “what if” financial projections, check out ProjectionLab. You can run various scenarios to see how your finances could turn out in the future.
Million-Dollar Mindset #2: Find Solutions To Economic Challenges = More Belief Everything Will Be OK
We recognize that economic challenges—such as inflation, job loss, recessions, accidents, and divorces—are inevitable. Yet, we remain steadfast in our belief that we will overcome them. We look at the silver linings of a recession, and how it can positively change our lives.
Take inflation, for example. We recognize that inflation is both an adversary and an ally. By investing heavily in inflation-hedged assets, like stocks, we not only neutralize its negative effects but also profit from it.
When the 10-year bond yield dropped to 0.51% in 2020, homeowners refinanced at record-low rates, with 30-year fixed rates averaging just 2.7%. Some of us used that opportunity to buy homes before prices skyrocketed starting in late 2020.
Now, with bond yields around 4.5%, we’re earning meaningful risk-free returns on cash. For those of us with low mortgage rates, it feels like we’re getting paid to live in our homes!
The knowledge we gain as personal finance enthusiasts equips us to better handle economic challenges. Whether it’s renegotiating vendor contracts in a business, rebalancing portfolios, or simply adjusting household budgets, we remain proactive rather than reactive.
Million-Dollar Mindset #3: Find Ways To Create Work Flexibility = More Freedom
By saving and investing more than the average person, we’ve bought ourselves incredible optionality. When your investments generate more income than your job, work becomes a choice, not a necessity.
Imagine no longer needing to chase promotions or work overtime to justify raises. You can say goodbye to 6 a.m. calls or Sunday travel to make a Monday morning meeting and still enjoy financial security. How wonderful to feel more free.
If you’ve reached at least 25 times your desired annual living expenses in investable assets, you could even retire early and pursue your passions stress-free. Better yet, as savvy finance enthusiasts, you know how to negotiate a severance package and enjoy unemployment benefits while transitioning to your next phase. Most people just quit with nothing due to fear and a lack of understanding.
Optionality extends to your career as well. Personal finance fanatics are often more willing to take calculated risks, like starting a business or pivoting to a completely new industry. Knowing that you have financial security gives you the courage to explore paths that align with your interests and values. Financial security also enables you to be your true self.
If you end up, marrying a personal finance enthusiast, you might not have to work very long at all!
Million-Dollar Mindset #4: Diligently Plan For Our Children's Futures = More Hope
Parents always worry about their children, but personal finance enthusiasts worry less because we plan more.
We’ve locked in affordable life insurance policies, set up death files, superfunded 529 plans, and created revocable living trusts. My wife and I found tremendous peace of mind after securing matching 20-year term life insurance policies during the pandemic through Policygenius.
Beyond that, we prepare for rising college costs by exploring financial aid options and funding custodial investment accounts and Roth IRAs for our kids early on. By teaching our children to contribute earned income to these accounts, we foster both a strong work ethic and financial literacy.
Some of us go even further by building rental property portfolios or side businesses to provide career insurance for our children. If they graduate without job offers, they’ll have a safety net—and maybe even a job in the family business.
Million-Dollar Mindset #5: Strive To Live A Healthier Lifestyle = Higher-Quality Life
Once you achieve enough wealth, the goal becomes enjoying it for as long as possible. The longer you live, the more you win. Personal finance enthusiasts often prioritize healthier food choices, better exercise routines, and reduced stress.
During my 13 years working in finance, I suffered from chronic lower back pain, TMJ, and sciatica. Within six months of retiring, all my pain disappeared and my hair stopped graying. It was then that I finally realized that constant discomfort shouldn’t be normal.
Beyond the physical, financial freedom enables us to focus on mental well-being. We can afford therapy, wellness retreats, massages, or even simple joys like daily walks without the rush of a strict schedule. We develop hobbies that promote longevity, such as hiking, gardening, or yoga with friends. When you don’t have to stress as much about money, it’s easier to lead a healthier lifestyle.
The health benefits of retirement are priceless. Toward the second half of your life, you will better appreciate how short life really is. By getting our finances right, not only do we have a greater potential to live healthier, but we might also extend our life expectancy.
Million-Dollar Mindset #6: Find Opportunities in Every Corner = Greater Wealth
Because we understand that money is interconnected, we’re constantly spotting new investment opportunities. If AI development becomes cheaper, companies with massive customer ecosystems that have been slow to invest should benefit. If a recession hits, bond prices will likely rise, leading to lower interest rates and stronger demand for real estate.
As derivative thinkers, we always ask: What opportunities could arise from a challenging situation? We seek out problems to solve or invest in companies that are solving them. With a positive bias, we focus on the upside.
One of the reasons I allocate a portion of my capital to venture capital is the opportunity mindset entrepreneurs must embrace to succeed. As a solopreneur myself, I know you have to be a little crazy to believe you can beat the odds in a highly competitive landscape. But you do it anyway—because you have to.
Personally, I’m investing in private growth companies like Anduril, Databricks, OpenAI, Anthropic, Canva, and more through Fundrise, a Financial Samurai sponsor. When I see other entrepreneurs building and scaling great businesses, I can’t help but want to invest in them over the next decade.
Million-Dollar Mindset #7: Never Give Up = Greater Satisfaction
Personal finance enthusiasts keep pushing forward, no matter what. If we fail at an endeavor or make a losing investment, we learn, adapt, and try again—this time smarter and more efficiently.
We recognize that the journey itself is more rewarding than the destination. Because once we reach a goal, satisfaction is fleeting, and we inevitably seek the next challenge. While this mindset can sometimes lead to unhappiness, it also teaches us to appreciate the process and find fulfillment in the pursuit.
We never fail due to a lack of effort—because effort requires no special skill, just determination. As a result, when we do fail, we can accept it with peace of mind, knowing we gave it everything we had. Sure, losses will sting. But not nearly as much as for those who half-assed it—because they’ll be left with something far worse than a sting: the weight of regret.
Shocked More People Aren’t Personal Finance Enthusiasts
Given the immense benefits, I’m genuinely surprised more people don’t embrace personal finance. Yes, the topics might not be as exciting as your latest reality TV drama. Yes, downturns and calamities will happen, but with our knowledge and experience, we always have hope—and the tools—to grind our way back.
Once you master your finances, you’re not only more confident and secure but also less envious of others’ success. You’ll likely find yourself being kinder and more generous because financial stress no longer weighs you down.
Perhaps the barrier lies in perception. Some see personal finance as dry or intimidating. But as those of us in the community know, it’s anything but boring. Personal finance is a gateway to freedom, adventure, and a life filled with options.
So, here’s my hope: that more people discover the joys of personal finance. Luck doesn’t have to be left to chance. By taking control of our money, we take control of our lives—and that’s the greatest gift of all.
Readers, why do you think there aren't more personal finance enthusiasts? Given so much information can be obtained online for free or at a low cost, why don't more people get obsessed with their finances to build more wealth and gain more freedom sooner? What other types of million-dollar mindsets can you think of?
Order A Copy Of Millionaire Milestones
If you want to build more wealth and create a life filled with opportunity, pre-order your copy of Millionaire Milestones: Simple Steps To Seven Figures. This book will show you how to achieve financial freedom and live life on your own terms. Take control of your future! Order a copy on Amazon or anywhere you buy books.
To expedite your journey to financial freedom, join over 60,000 others and subscribe to the free Financial Samurai newsletter. Financial Samurai is among the largest independently-owned personal finance websites, established in 2009. Everything is written based on firsthand experience and expertise.
Removing all debt as fueling my financial goals more than I ever realized. Having no debt – no mortgage, CC’s, car loans,- of any kind has in turn enabled me to spend and enjoy money more. Some say money is worthless until you spend it. I don’t think that is true – it is freedom and security even when not spent. However, that can become an addiction to where you are unable to spend and enjoy the fruits of your labor and saving.
I have found that finally freeing myself of all debt, even if not financially necessary or even recommended by personal finance gurus, was tremendously freeing. I now treat myself regularly and the only equation is “cash”. Never will i take another load again. – new toy car, business class flights, nice dinners, increased giving. Once you hit your financial goals and remove all debt, spending became much easier for me. Carpe diem.
Diversification is how you make the good times last forever. Having all of your investments in the same basket is a recipe for disaster. In 2022 Value stocks of boring companies that are cash machines did great while tech stocks got hammered. Those boring blended index funds hold up well in recessions also.
It was interesting reading the crypto posts in 2021 when people were bragging about how much their assets were making. I constantly pointed out the ponzi scheme they were participating in, but they didn’t want to listen. I held cash and treasuries at the market highs in 2021. A ton of it. When crypto crashed and these folks lost 100%. I took my cash and bought i Bonds and index funds at bargain prices and will do the same again.
I always keep some cash to go shopping when the economy is bad. It never fails to produce monster gains. I am raising my cash levels now as well.
When the market corrects I will buy shares when others are panic selling. Volatility makes it easier to make money and I love it. Everyone acts like a genius in a bull market, but few of them survive a sharp downturn.
not sure what you mean by crypto going bust. In 2021 I bought on a dip and it has returned 7x. It was the best “public” investment out there for those willing to see its value. To your point, buy on the dip – but I would include crypto as something you want to buy on the dip. If BTC seen low 70k again, buy.
We definitely are a unique group of people. My closest friends are all in their early 30s and spend tons of money going to basketball games, shows, and events. Yet they also constantly complain about not having enough and things being so expensive.
Like hello, saving and invest more money! Don’t turn out to be one of those 40 year old single dudes still going out partying and wasting money because there’s nothing else better to do.
By age 35, most people have nobody to blame about their finances but themselves.
Thanks for all your writing over the years!
I think the subject of personal finance brushes up against money taboos. Being open and excited about investing may be seen as loving money.
Being a Finfluencer allows an emotional degree of separation between the giver and the receiver. Me personally trying to advocate to my acquaintances to invest in Fundrise, for example, will get the thousand yard stare, since most of them don’t have a basic emergency fund and my advice comes across as out of touch with their situation. I will continue to send my financially inquisitive friends your way, Sam!
I try to keep my personal investing private. When I was younger, I was more open with discussing my investments. As some investors focus on growing wealth and allow their “luck” to compound, it becomes more difficult to relate with the people who are left behind. One friend who was excited for my financial success asked me to personally invest and multiply their meager savings for enough to buy a house, as if I have a magic money wand. I know it sounds terribly snarky, but it is true. I used to discuss my investing and early retirement but not any more because it leads some people to delve into my finances and maybe see me as a source of funds. It is not comfortable to have to defend my choices. I now choose to be silent on my wealth to all but a few close friends of similar wealth status.
Good perspective! It’s sad money is taboo. If we can talk about it more, more people will learn and improve their financial situation. This would be a net positive for all.
“ As some investors focus on growing wealth and allow their “luck” to compound, it becomes more difficult to relate with the people who are left behind.”
One strategy to normalize your level of wealth closer to theirs, so they don’t see you as intimidating or a money tree. But I think we’ve got to help the people we care about if we are fortunate enough to be in a strong financial situation. I’ve actually volunteered to help my big sister and invest her retirement funds. It does take work, but I want her to save that one percent financial advisor fee, which adds up overtime.
“ It is not comfortable to have to defend my choices. I now choose to be silent on my wealth to all but a few close friends of similar wealth status.”
I hear you on this. The more you open up about your financial decisions, the more you will get judged. You might not want to be a personal finance writer as I get judged all the time no matter how I spend my money. It’s just the way things are.
It is always nice to send people who ask about financial advice to a third-party. Because maybe through a third-party, it’s easier for them to listen than to listen to someone who was their peer, or is their friend, or is their relative.
It is one of those things, though where you can only lead the horse to water. They’ve got to want to take action on their own.
Yes! I very much agree. There is so much truth in this article. Having an interest in gaining control over one’s finances is so much more than just a life skill. I feel blessed that I enjoy saving and investing money. Someone even asked me recently, what would I do if I got a big lump sum of cash, and my genuine answer was “invest it.” Granted I do spend on simple needs and wants, but I have an internal throttle that gets triggered and pulls back if too many wants bubble up to the surface. Having financial security is so important to me that I don’t see my spending habits drastically changing for the foreseeable future. And that brings me peace of mind.