One of my favorite business books to come out this year, is Rework by Jason Fried and David Heinemeier Hansson. I truly believe that this book is going to become a classic. If your into business and entrepreneurship, I would recommend giving it a read.
This purpose of this post isn’t to review the book. It’s about a very important lesson regarding personal finance that came to me while reading Rework.
Jason and David run a business 37 Signals, a web-based software company. They do things their own way. They let employees work from where they want to. They let employees work when they want to. They have a 4-day work week. They wrote a book detailing exactly how they make their software and even gave it away for free. Yes, even to their competitors. Yet these guys are making a lot of money.
A lot of what 37 Signals does might sound radical to anyone who has their MBA in business. However, I think these guys are extremely focused on making their business profitable and a great place to work .
How This Applies to Personal Finance
I love to listen to success stories in personal finance. People who had goals and did everything they could to achieve them.
Jacob from Extreme Early Retirement reached financial independence at the age of 30. For the short time he had a job, he managed to save and invest around 80% of his salary.
Adam from Man Vs. Debt, sold his crap, paid off his debt, and traveled New Zealand for a year with his wife and 1-year-old daughter. As the website says, now he spends his days doing what he loves.
If you told these bloggers stories to people on the street, a lot of people would think what they did was radical. However, just like the guys at 37 Signals, I think these guys were and still are extremely focused.
They are doing what makes the most sense to them. Jacob doesn’t have a drivers license. Adam doesn’t use a credit card.
They each knew they would have to give up some things. However, it was a small price to pay to achieve their goals.
Setting goals is one of the most important aspects to designing your financial plan. I say this a lot, but it’s worth mentioning again. You need to set Big Hairy Audacious (financial) Goals.
Your goals might sound radical to your parents or friends, but that’s fine. This is your life and you deserve to do whatever you want.
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