I was having a very tiring day today…a few tiring days actually and I was totally spent when I came home. I checked my blog emails and found some uplifting comments from readers of one of my blog posts. My spirits got recharged due to those comments. Thanks to Tristan (Dividends Down Under), Ambertreeleaves (ambertreeleaves) and Mister SLM. I decided to put my recharged spirits to good use and write a blog post that I have been thinking about sharing for quite a while. This is my way of paying my dues for the good karma that came my way today from the three wonderful people mentioned above.
Back in mid 2014, I defined what Financial Independence means to me in one of my very early blog posts (link). The plan definitely has changed a bit over the last two years. But, I have been executing this plan with all the motivation and money that I can muster
Along the way, I realized one profound motivational idea that I will share via this blog post. I have spreadsheets that track my monthly dividends going all the way back a few years and in there, I track which of my monthly needs are funded fully by my current passive income.
One day, while updating that, I realized this profound motivational question. Every now and then, I have a rough day at work or at home and sometimes both 🙂 I keep myself motivated by asking myself this question: How much freedom did I buy today?
Here is my answer.
- My Passive Income goal is
- $4000 per month (Why $4000 pm?)
- $48000 per year
- $131.5 per day ($48K/365)
- By end of this year, if all goes well, my monthly passive income will be $750 per month. This has come through a lot of sacrifices…both by me and my family.
- How much freedom will $750 pm buy me?
- $750/$131.5 => 5.7 days per month => 136 hours per month => 4.38 hrs a day (31 day month)
- To put this in perspective, here is the amount of freedom $750 pm of passive income will buy me:
- 4.38 hours of absolute freedom every day!
- 5.7 days of absolute freedom every month!
- 68.4 days of absolute freedom every year!
- 2 months of absolute freedom every year!
When I started working many many years ago, saving was defined as money that I did not spend. I was very aimless and had no idea of Financial Independence. Obviously, money vaporized like water. It took a nasty and depressing curve ball in life to start me on a search to something different and I ended up discovering Financial Independence by accident (my first blog post). Thanks to the wonderful world of FIRE bloggers, I found my “something different” i.e. Financial Independence and Early Retirement. Though, it is not going to be as early for me…but better late than never hey !!
The question that keeps me motivated and fills me with enormous drive is the question:
- How much freedom did I buy today?
- My answer is 4 hours a day.
- What is yours?
Hope this question motivates you to keep striving for FIRE!
7 thoughts on “How much freedom did I buy today?”
Thank you so much for this blog. This is not only informational but of great help in streamlining the financial maze. I have burned my hands with advice from Financial planners and own emotional based investing and this is probably the only place I have found simple, concise everyday financial path which one can follow. Keep up the good work as I am definitely following your steps.
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Thank you for the kind words!
That’s the spirit HumbleFI 🙂
I often do like to think of how what we could pay for, with the dividends we’re receiving. A supermarket shop? A full tank of the car? It’s nice to think of it in small chunks like that, and makes the huge size of the amount needed more possible to overcome.
Last tax year we received just under $500. Considering we’re not investing at the moment (saving for IVF procedures) it’d be good to get $600 for the year, $50 per month. To play your game, we’d need $34,000 ($93 a day) to cover our current annual expenses. $50/$93 is just over half a day a month. We have a long way to go 🙂
We will make it happen though. Looking forward to following along and seeing your reach your target
Thanks for the shout out!
(Mr SLM is from http://www.screaminglittleman.com/ )
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Nice post… I like the idea to make your dividend income into something tangible…
We are at roughly 27 pct of our goal, that would be 1,3 day per week… on top of the weekend that is!
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I know I am a little late to this post, but I am glad I found it because I thought it was AWESOME. Very cool to put it in those terms, that I hadn’t really seen before. And since I love freedom, :), that was a great way to describe it. I think I’ll assess my own situation in a similar way today, just to see where I am at. Thanks again,
You are welcome! Thanks for dropping by! Sorry about the delay…out of town on work and picked up a nasty flu strain along the way.
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