How much freedom did I buy today?

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!

Motivational Thoughts

Step by Step

<< I recently read a wonderful article from UConn.edu. I am reproducing it here verbatim since I thought it was extremely powerful. It lifted me out of my blues..hope it does the same to others as well. >>

The famous basketball player Michael Jordan wrote the following about goal setting in his book, I Can’t Accept Not Trying: Michael Jordan on the Pursuit of Excellence:

I approach everything step by step….I had always set short-term goals. As I look back, each one of the steps or successes led to the next one. When I got cut from the varsity team as a sophomore in high school, I learned something. I knew I never wanted to feel that bad again….So I set a goal of becoming a starter on the varsity. That’s what I focused on all summer. When I worked on my game, that’s what I thought about. When it happened, I set another goal, a reasonable, manageable goal that I could realistically achieve if I worked hard enough….I guess I approached it with the end in mind. I knew exactly where I wanted to go, and I focused on getting there. As I reached those goals, they built on one another. I gained a little confidence every time I came through.

…If [your goal is to become a doctor]…and you’re getting Cs in biology then the first thing you have to do is get Bs in biology and then As. You have to perfect the first step and then move on to chemistry or physics.

Take those small steps. Otherwise you’re opening yourself up to all kinds of frustration. Where would your confidence come from if the only measure of success was becoming a doctor? If you tried as hard as you could and didn’t become a doctor, would that mean your whole life was a failure? Of course not.

All those steps are like pieces of a puzzle. They all come together to form a picture….Not everyone is going to be the greatest….But you can still be considered a success….Step by step, I cant see any other way of accomplishing anything.

I Can’t Accept Not Trying: Michael Jordan on the Pursuit of Excellence is published by HarperSanFrancisco, a division of HarperCollinsPublishers (ISBN 0-06-25119)