$90000 Income tax relief, Invest and Retire Early [feat Josh Tan]

Unveiling the Path to Financial Freedom

In a recent episode of the podcast, Josh, a seasoned finance expert and creator of two successful YouTube channels, sat down for an engaging conversation to shed light on the fundamentals of being an astute parent while navigating the realm of personal finance and investing. Having worked in the financial advisory field, Josh recognised the power of social media in reaching and educating people. What began as a quest to acquire customers soon transformed into a mission to educate and empower individuals seeking financial knowledge.

Josh emphasised the significance of starting the financial journey by slowing down and listening to gain a deeper understanding. He highlights the common misconception of overconfidence that often arises in the early stages of learning. By acknowledging what one doesn’t know, individuals can cultivate humility and avoid costly mistakes. Josh advises new investors to space out their investments over time, allowing for continuous learning and growth.

“Each and every phase you do it a bit differently. So if you’re at a start, maybe being astute is listening more first, slowing down your process, and in that, you would avoid mistakes.” – Josh

The Power of Relatability and Connection
Being a parent himself, Josh understands the unique challenges faced by the “sandwich generation” — those raising families while caring for aging parents. He highlights the importance of relatability and connection, explaining that sharing experiences and learning from others in similar situations can provide a sense of relief and assurance. By creating content that resonates with his audience, Josh aims to foster a community where individuals can find support and guidance in their financial journey.

The Role of Validation and Seeking Guidance
To validate their knowledge and ensure they are on the right track, Josh encourages individuals to connect with experienced investors and seek guidance. By learning from others who have traversed similar paths, one gains valuable insights and avoids pitfalls. Engaging with a community of like-minded individuals can provide a sense of reassurance and support throughout the financial journey.

“It’s always great to kind of validate with others who have been there, done that, you know, exploring. It’s a great way to get that external perspective and learn from their experiences.” – Josh

The Basics of Astute Parenting: Taking the First Steps

Everyone’s starting point is different. For those new to investing, he advises seeking out reliable content that provides guidance on getting started correctly. Slowing down the process and listening more attentively can help avoid common pitfalls and mistakes. Josh encourages individuals to recognise what they don’t know and to approach their financial planning journey with humility.

What it means to “listen more” and “slow down” in the context of financial planning? 
It’s crucial to avoid rushing into investments without a comprehensive understanding. It is recommended to deploy funds gradually over time, rather than making hasty decisions. Validation plays a crucial role in this process, encouraging individuals to connect with experienced individuals and seek advice from those who have already traversed the path to financial freedom.

The Power of Dollar-Cost Averaging (DCA): Lump Sum vs. DCA
The conversation takes a turn toward the debate between lump-sum investing and dollar-cost averaging (DCA). Josh advises caution, particularly for those in the middle phase of their financial journey. While lump-sum investing may seem appealing, it is often more suitable for experienced investors. For those starting or in the middle phase, adopting a DCA approach and spreading out investments over time can minimize risks and provide a more balanced strategy.

“If you are still new and you DCA, you slow down that process. You’re not investing to be the world’s most successful investor. You’re investing to get to financial freedom.” – Josh

Defining Financial Freedom: Beyond Numbers
According to Josh, financial freedom is not solely defined by a specific number but rather by an individual’s monthly expenses. He encourages individuals to conduct a thorough assessment of their own financial situation, taking into account their expenses and potential changes. Financial freedom should not be fixated on a specific monetary figure but rather on achieving a state where core expenses are met comfortably. Beyond that, individuals have the flexibility to adjust their financial goals and priorities.

“Go at the pace that you like. And again, understand that expenses can change, which will mean your financial freedom number can change.” – Josh

Josh’s insights provide a roadmap for individuals seeking financial mastery while shouldering the responsibilities of parenthood. By embracing a patient and humble approach, actively seeking guidance, and adopting strategies like dollar-cost averaging, one can navigate the complexities of personal finance and inch closer to their desired financial freedom. Remember, the journey may be long, but with astute decision-making and continuous learning, financial success is well within reach.

You can check the full interview on Chills with TFC, Episode 152 on Spotify, YouTube, or Apple podcast for the candid conversation exploring the basics of astute parenting and the key principles of financial planning.

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