What controls you? When will you be free of it?
In our society, with consumerism the biggest driving force, money is the main shackle that binds. When will you be free of money worries? How much money do you need to have to be free? Consider the following:
- If an investment earns 5%, then $100,000 invested would give you $5,000 per year.
- If you had no debt, could you live off of $20,000 per year?
- If so, then $400,000 would set you free.
Imagine, for the rest of your life, being given $20,000 every year, inflation adjusted. You could still work if you so wanted. Or, you could sit around and read all day. Or, you could paint. Or you could play with your kids. Whatever. It becomes your choice. By it becoming your choice, you become independent. You become free from control.
How much do you really need to live? Not what the magazines say you should spend, but what you really need. Compute that, then reverse engineer how much you would have to put away so that the interest off an investment meets your minimum. Run to that point of wealth as as fast as you can so you can have your true independence day.