Buying Time-Freedom Before the 4% Rule with Joseph C. Wells

Joe Wells is a writer, real estate investor and self-development junkie.

He grew up in Moravia, New York, population 1,220. Following a three-month internship his senior year of college, he accepted a job to work as a Consultant in New York City. Six years later, he’s still in NYC.

Joe is taking a unique path to financial independence because he needs time-freedom before the 4% rule. He is aggressively saving & investing, and keeping his expenses low—not an easy thing to do working in Manhattan.

Having discussions with young men like Joe, a voracious learner who lives with intention and purpose, is one of my joys in life. I hope you enjoy our chat as much as I did. If you do, please let us know in the Comments.

Our discussion includes:

How writing helps Joe to formulate his thoughts better
How Joe & roommate, Pat Dunden, got interested in getting better
The value of good roommates
Brainstorming different business ideas
Self-improvement through reading books and listening to podcasts
Co-authoring a 50-page book for high school seniors
Teaching what he and Pat wish they knew in college and first job

Joe’s One-Click System (at 8:37):

One-Click is a framework for self-improvement
Everybody in the world can be plotted on his Engagement Continuum
Most people fall between 4 & 5 on Engagement Continuum
Those in 4-5 range have a job, but frequent more bars and watch more Netflix than the average person
If you’re in the 4-5 range and not improving, you’re getting worse
Those who fall below 4-5 range are in the Complacency Vortex
The goal of One-Click is to get to the next click
Good habits keep you from sliding backwards
Positive habits compound until you experience exponential growth
Compare yourself to others only for reference
Why intellectual humility is so important
Formulate your opinions based on others’ experience and your own
Approach every situation as if you have something to learn
The value of anti-role models

Joe’s Unique View of Financial Independence (at 19:17)

How & why he’s purchasing real estate to become financially free
Achieving financial independence before the 4% rule
Needing time-freedom before he gets $1.5 million
Joe has listened to every Bigger Pockets show, including ep. 305 twice!
Investing more in real estate than the stock market
Doing a comparison of Vanguard funds: VTSAX vs. VTI
Focusing on funds that are easy to liquidate
The best time to max-out your 401K
Joe’s article on leveraging your 401K to invest in real estate was published on ThinkSaveRetire.com
Practicing Tim Ferriss’ fear-setting exercise
How to be frugal while working in one of the most expensive cities in the world

On Character-Building (at 33:20):

The importance of not caring what other people think
When someone talks sh*t to you, it builds character to “give it back”
Preparing meals in advance to save money
Joe’s chili story
“The opinions of others have no impact on you, unless you let them”

Our Discussion on Meditation (at 40:47)

Exercise as a form of meditation
How to reduce “the racing mind”
How to organize your thoughts
How to observe what’s going on in your own mind
Developing mental models and heuristics
Cultivating an inner-life
Learning to better direct your thoughts

Miscellaneous Questions (at 46:00):

Joe reads 18.5 books/year on average
Reading books by and about successful people
Tennis players’ mental dynamic from solitary practice
My review of The 48 Laws of Power
A book Joe has read more than twice
Leadership skills apply to everyone
How to effectively manage your boss
Career progress by inducing honest feedback from your boss
How to prioritize and execute
Our feelings-focused culture
Don’t prefer the compliment that might deceive you, to the criticism that might do you good
Self-employed people make up ~20% of population, but >60% of millionaires
How much millionaires pay for their suits
Joe’s favorite podcast episode: Stanley McCrystal on Tim Ferriss Podcast
How to Invest with Clear Thinking Howard Marks with Tim Ferriss
Living in New York City is like traveling the world everyday