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Tuesday, June 2, 2009

Freedom is Networthless

Net worth is a Sirens song leading you down the path of perpetual slavery because including the appraised value of something doesn’t set you free, it misdirects you from the true prize, freedom. Your focus must be on passive income, not the appraised value of houses, cars, art, etc.

Consider this, freedom happens when:
Passive Income - Living Expenses > 0

How much money does your house throw off to you? Unless you have a renter, it gives you nothing! Sure, if you sell it, you have something, but until you have something, you don’t have anything. Appraised value doesn’t put food on the table. It doesn’t

  • Passive Income is the income that you bring in while doing NOTHING.
  • Living Expenses are all the costs to live your life.

Your financial focus must be on those two variables, Passive Income and Living Expenses.

Our sailboat trip is focused on both of these variables. We are working hard at establishing a passive income that is greater than our living expenses. Once we’ve done that, we can sail indefinitely!

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