The personal-finance book begins with the central character, Jamie Morelli, already married, indebted, and about to have twins. What if Jamie had decided to make financial independence a priority while still single? He might have been able to reach his goal much easier and sooner.

If one delays marriage and/or kids for a few years, they can live modestly and save 50% to 80% of their income by living in inexpensive accommodations, taking the bus/riding the bike, and enjoying simple pleasures like reading and hiking. Of course, this extreme frugality will not be everyone’s cup of tea. It’s more for individuals who really don’t want to be chained to a job all their life.

If one does get married early in life, it helps to find out beforehand if their spouse is on the same page. I’ve touched on this before too: if one spouse is parsimonious and the other is not, the sailing could be rough — like it was for Jamie and his wife.

If already married with children, the options are fewer. It will be a longer and less certain haul to financial freedom. But perhaps one can discuss things with their spouse and obtain agreement for some lifestyle changes that result in a much higher rate of saving.

1) You can become financially independent without the big score in business or investing by spending less than you earn (cut out lottery tickets, booze, restaurant meals/coffee, cigarettes, candy, etc.)

2) To stay on track, pick a date to be financially independent (“Findependence Day”); to get there, have a financial plan and even an advisor (whose value added includes advice on taxes, household finances, estate planning, insurance, registered plans, and so on).

3) Get rid of all credit-card debt and consumer loans.

4) As a foundation for financial independence, buy a house and pay off the mortgage as fast as possible. A 30- or 35-year mortgage is fine if you use the prepayment and accelerated-payment options to extinguish within 10-15 years.

5) Don’t start investing until at least half the mortgage is paid off; for investing, consider a preauthorized chequing account (PCA) that automatically transfers 10% to 20% of your paycheque into an investment account in which you have set up a Lazy Portfolio (mostly a diversified basket of exchange-traded funds such as, if I may suggest, the Couch Potato Portfolio).

6) If your job is secure and comes with a good pension (e.g. government, teacher), emphasize equities; if job income is insecure (e.g. commissioned sales), emphasize bonds and other less risky assets (alternatively, dollar-cost average into equities through a PCA).

7) Don’t invest a large part of your financial portfolio in your employer – diversify your portfolio to avoid having too many eggs in same basket

Save and invest job bonuses and pay raises.

9) Run your old car on the road longer; pay cash for a new car by contributing regularly to a Tax Free savings Account (TFSA).

10) Multiple streams of income are good; consider REITs as an alternative to owning rental properties and the hassles of being a landlord.

11) Hold fixed-income investments and high turnover mutual funds in tax-sheltered accounts; hold stocks in taxable accounts (except for U.S. dividend stocks because they are not eligible for dividend tax credits).

12) Portfolio management tips: a general-purpose asset allocation is 60% to stocks and 40% to bonds; favor exchange-traded funds and some mutual funds over individual stocks (except stocks with growing dividends), tilt toward small caps and value investments; diversify into foreign stocks; use currency hedging if foreign holdings over 25% of portfolio; consider real-return bonds for inflation protection; reinvest dividends through company reinvesting plans; and so on.

Another subtle dynamic at work is spousal relationships. One spouse may have a taste for expensive things while the other acquiesces against their better judgment. They don’t want to be thought of as a “cheapskate.” Or they want to be seen as a good provider. Or talking about budgeting tends to be stressful. And so on.

But then, before they know it, money problems flare up and become an even bigger sore point. It might be better to sit down in a calm fashion and discuss a more rational approach, rather than let things drift.

Canadian Capitalist and his spouse seem to have things sorted out. He is happy to drive a 1992 Honda Accord even though they could easily afford something more impressive. I’m happy to do it in a 1998 Toyota Corolla. Many couples have to get from point A to point B in something fancier, and are willing to take out big loans to get it. The problem is some important financial goals are likely being sacrificed.

What leads us astray is the urge to “keep up with the Jones.” Resisting this tendency is key to saving and realizing financial goals like becoming financially independent, chilkdren’s education, comfortableretirement, etc.