Most Important Financial Skill For Achieving Financial Freedom
Author Discovers 'Most Important Financial Skill' For Achieving Financial Freedom
Kerry Hannon·Senior Columnist Sun, May 28, 2023
Most of us have fits and starts on our financial journeys. But in the end, it comes down to “prosaic prudence,” or to put it simply, a humdrum approach, according to Jonathan Clements, a retirement expert and author of the new book "My Money Journey."
Clements, who spent two decades at The Wall Street Journal, where he was the personal finance columnist, is also the founder and editor of HumbleDollar website. In his latest book, he shares the financial lives of 30 people, ranging in age from 30 to mid-80s, including a high school teacher, a minister, and a software engineer.
Kerry Hannon·Senior Columnist Sun, May 28, 2023
Most of us have fits and starts on our financial journeys. But in the end, it comes down to “prosaic prudence,” or to put it simply, a humdrum approach, according to Jonathan Clements, a retirement expert and author of the new book "My Money Journey."
Clements, who spent two decades at The Wall Street Journal, where he was the personal finance columnist, is also the founder and editor of HumbleDollar website. In his latest book, he shares the financial lives of 30 people, ranging in age from 30 to mid-80s, including a high school teacher, a minister, and a software engineer.
"When we write about our money journey, we inevitably describe our life journey," Clements said.
He offered some advice, and some insights, in a conversation with Yahoo Finance about everything from the role that parents play in shaping their children’s future financial lives to recovering after financial mistakes.
Edited excerpts:
What Inspired You To Write This Book?
One of the strengths of the website I run is that I have everyday Americans tell their financial stories. When they write for the site, they're writing about their personal experiences such as how they've dealt with retirement, how they've dealt with down markets, how they've dealt with financial emergencies. I invited the contributors to tell their full financial story. The message: If these everyday Americans and investors can reach financial freedom, so can you.
What Do You Mean By Financial Freedom?
It means money isn't a regular worry. It doesn't mean that you can buy anything you want, but it does mean that you have enough money to meet your wants and needs. If your financial desires are relatively modest, you could be financially free with a relatively small portfolio.
Only Five Of The Contributors Are Women. What Gives?
There's a less sinister answer. These are the readers who have followed me from the Wall Street Journal, and when I was there, it was mostly read by older white males. But I do think that there’s also a societal issue here, which is that for far too long, men have been in charge of financial issues in households, and women have taken the backseat. I think it's entirely unfortunate, and hopefully, generations to come will be much more balanced about it.
You are known for extolling frugality in your own financial advice, how does this play out in the book?
A thread that runs through is that these 30 people are disciplined. They've become very good at delaying gratification and living beneath their means. That is the most important financial skill. It's much more important than being able to pick good investments. It's much more important than being able to decipher Social Security or figure out the best credit card to use.
What Are Some Of The Other Major Themes In These Money Essays?
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