Wednesday, 22 November 2017

Your Money Trinity

Hi dear folk

The triangle is of course the strongest geometrical structure known - three sides, three angles, immovable, yet each side and angle totally dependent on the other for its strength and effectiveness. Yet, remove one element and the strongest shape become 100% ineffective and weak.

The concepts of the triangle are used heavily in the realms of architecture and spirituality. The concept of the triangle is also vitally important in the world of personal finances.....or at least it should be.

Your Money Trinity

Our money trinity is simply this:

Wise Investments - Frugality - Earnings

Lets chat about all three elements, because, as we can see, each element also has three sides each too. If we understand even the simplest concepts of architectural engineering we will know that this shape is super strong and safe....push at it from any angle and it will not budge.

Please note that all three elements are of equal size and equal importance - keep that in mind as an underpinning principle.


  1.  Earnings should never be static. Find ways to increase earnings little by little. I have found that putting my hand up at work to do things no one else wants to tackle gets me noticed - it has served me well over the years.
  2. Earnings should come from several streams. Having only one source of income is risky. Even if the other sources of income are smaller, that's OK - spreading income risk is the aim here.
  3. Don't fall for the "do what you love" idealism. Instead, do what you are good at - this will guarantee the best possible income and opportunities over time.


  1. Find ways to continually reduce expenses. Shop specials, DIY, stockpile, use public transport, cook from scratch, turn off lights, choose free entertainment, stay-cation, sun-dry clothes etc. Make reducing expenses a game not a chore and involve the whole family.
  2. A dollar saved is much better than a dollar earned. A dollar earned is taxed whereas a dollar saved is not taxed. Also remember that every dollar you save must get banked/invested. It is not truly a saving till it is banked or invested
  3. Buy the best quality that you can afford. I would much prefer to buy a good quality gadget second hand with light usage than a cheap and cheerful gadget new. Do not confuse fashion with quality. Self-educate on what quality is in the product that we need before purchasing. The aim is to buy quality so it lasts and we only need to purchase once. Buying cheap and cheerful can often be a false economy.

Wise Investments

  1. Invest as early as possible as time is the biggest key to good investing. Encourage children to invest starting at their very first paycheck or even pocket money. Small amounts invested repeatedly over time benefit immensely from the 8th wonder of the world.....compound interest.
  2. Self-educate on investing. Understand the power and wisdom of index ETF investing, dividend investing, bond investing, dollar cost averaging, market fluctuations and buy-and-hold investments. Read all the copious and free information on the subject. You probably do NOT need to pay a financial adviser ever.
  3. Good investing is slow, boring and repetitive. If it is exciting, addictive and nerve-wracking, then we are doing it wrong. If it comes with a glossy brochure or snazzy website, then don't. Do not day trade. 

Most importantly - equal time and effort need to be given to each of these three elements. Focusing only on frugality will make us miserly and cheap. Focusing only on investing is impossible without something to invest. Focusing only on earning more and more money is just plain dodgy.

A perfectly balanced approach to Frugality, Investing Wisely and Earnings is the foundation of fiscal prudence and wisdom.

This strong trinity of concepts will ensure our finances are safe yet abundant.

Take care folks and stay nice.

Mr HM (Phil)

P.S. I just loved the grey sandstone rock carved into a beautiful pattern by the wind and the waves.  I took this post header picture at the breakwater where we do our evening walks.


  1. Another great post, Phil.
    I think I'm doing well in Frugality, but I should improve in Earnings and Wise Investments.
    I only have one source of income. Though it is somewhat reliable (can't say 100% , you never know), it's nice to have a second source of income.
    I mainly invest in mutual funds (Vanguard funds are my favorite because of low fees), but I would like to increase the monthly amount next year.

    1. Vanguard are certainly top-notch when it comes to investing. Try just investing 1% more bi monthly (just a way to trick the mind into it!).

  2. Great post Phil.

    Recently, we just replaced a couple of appliances and after doing our research, it was better in the long run to buy the dearer versions.

    The cheaper varieties did not get good reviews and the long term energy savings from the cheaper models was poor when compared to the more expensive models.

    1. Spot on KellieL. I have lost count of the amount of cheap irons, egg beaters and the like we have chucked out over the years.

  3. Very sound advice as usual, and in such a way that really makes it simple. For some folks this comes easily, but many need many props and simple suggestions until they can learn to reinforce all three elements.

    1. Thanks Sally - I just write it as I understand it just hoping it is bound to make the lights come on for someone - who knows.

  4. Another very interesting post. Your always give such good advice. Love your writing.

    1. As long as someone can benefit or perhaps make a small positive change then I am happy

  5. Ten out of ten for this concept and post Phil, love it!

  6. I am pleased you explained about the photo, Mr.HM. I have just been sitting here trying to work out what it was. LOL!

    1. Ha ha! Yes. It certainly needed some context.


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