One of the strategies I used in my financial independence journey is the “out of sight out of mind” strategy. Things you don’t see you tend to forget about. For example, my son played with certain toys all the time. When I hid a toy, he eventually forgot about it and went on with his life. This is the same strategy I used for my financials. Let’s apply this to different areas

Retirement account

When you work and hopefully your employer has a 401K or other retirement plan where they contribute to. If not, you still have the option to contribute your money towards it. I look at retirement accounts as money I won’t be touching until I reach the appropriate retirement age. I know this account exists and I continue to contribute towards it. Let the retirement account do its thing by growing and compounding over many years. Don’t think about touching the money because of the early withdraw penalty. Keep it out of sight.

Live on your current salary

I was very fortunate every year or every new job I got has always come with a salary increase. At some point my salary was able to support my family and our spending needs. Once I reached this point, I decided that I will live off this salary amount going forward even if my salary continued to increase. This has helped me to avoid lifestyle creep and maintain my current lifestyle. The extra money that I earn went to investments. Keep the extra income out of sight. You won’t miss it.

Put extra money away and don’t think about it

If you come into any extra money, don’t think about spending it. Invest it and keep it out of sight. If you happen to get a tax refund, refund for overpayment, money from a class action lawsuit, or any other situation where you received money, keep it out of sight. You’ve been living just fine without it so why spend it. Instead invest it.

The “out of sight out of mind” strategy has helped me grow my portfolio to a point where early retirement became a realistic option. You can’t spend what you don’t see so that is the whole point. Put your money where you won’t reach it, let it compound, and live avoid lifestyle creep. If you are interested in following my journey, email subscribe here to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.