Summary of Sam Dogen's Buy This, Not That

By IRB Media

Please note: This is a companion version & not the original book. Book Preview:

#1 Finishing your financial independence will mostly be based on passive and semipassive income streams. I'll help you figure out which ones are right for you.

#2 Financial independence allows you to live your life on your own terms and in the way that energizes you. It gives you the courage to be more creative and take on bigger risks.

#3 When you feel confident that you belong, good things start happening. When you are financially independent, you can spend more time with your family and friends.

#4 There are many different definitions of financial independence, but the most common is when your net worth is 25 times your annual expenses. However, with low interest rates, declining expected returns of risk assets, exorbitant health-care costs, and longer life expectancies, I don’t believe a net worth of 25 times your annual expenses is enough.

• Language: English
• Publisher: IRB Media
• Release date: Aug 27, 2022
• ISBN: 9798350017281

IRB Media

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Insights on Sam Dogen's Buy This Not That

Contents

Insights from Chapter 1

Insights from Chapter 2

Insights from Chapter 3

Insights from Chapter 4

Insights from Chapter 1

#1

Finishing your financial independence will mostly be based on passive and semipassive income streams. I'll help you figure out which ones are right for you.

#2

Financial independence allows you to live your life on your own terms and in the way that energizes you. It gives you the courage to be more creative and take on bigger risks.

#3

When you feel confident that you belong, good things start happening. When you are financially independent, you can spend more time with your family and friends.

#4

There are many different definitions of financial independence, but the most common is when your net worth is 25 times your annual expenses. However, with low interest rates, declining expected returns of risk assets, exorbitant health-care costs, and longer life expectancies, I don’t believe a net worth of 25 times your annual expenses is enough.

#5

It can take years to reach your ideal passive-investment income figure because your family and expenses keep growing. But once you do, life becomes richer.

#6

Happiness is subjective, and difficult to measure. However, based on the data, it's clear that money only accounts for a small part of it. Family, friends, accomplishments, faith, and purpose are the main factors that contribute to happiness.

#7

Once you have a clear idea of the life you want, you can calculate how much money you'll need to get there. Don't gloss over this part. You'll see in chapter 2 that the entire Buy This, Not That method is rooted in answering questions about what you want and what you're willing to do to get it.

#8

The ideal split between active and passive income is 70 percent/30 percent. Thus, out of a $120,000 ideal income, it feels better if $30,000 of the income comes from doing something you enjoy. By staying active, you get the reward of staying relevant and productive.

#9

You will always have some concerns about your financial situation, but you should strive to live your life knowing that you’ve done your best to increase your probability of success.

#10

Your financial independence number should give you the courage to change suboptimal situations. If you are unable to act, then you probably need to keep on growing your wealth. The difference between your passive investment income and your expenses is called your gap. As your amount of passive investment income rises toward your total expenses and the gap gets narrower, more enjoyable jobs open up that enable you to bridge the gap.

#11

Your definition of financial independence is when your net worth equals 20X your average annual gross income. The two goals are highly correlated, and you will eventually achieve both. You should aim to achieve a net worth equal to 2X your annual income by the age of thirty, 5X your annual income by the age of thirty-five, 10X your annual income by the age of forty, and 15X your annual income by the age of fifty.

#12

Everything is a gamble, and the quicker you achieve financial independence, the more you will be able to take risks and try new things. Save at least 20 percent of your after-tax income.

#13

It's important to link your net worth goals to your gross income. Focusing on an

Reviews for Summary of Sam Dogen's Buy This, Not That

[Chloe · Rating: 5 out of 5 stars]

Amazing insights. Not for the financial faint of heart I would say but perfect if you’re looking or be aggressive with investing and retiring wealthy