What interests you about the concept of freedom? No matter what our money goals, those of us fortunate enough to earn more than is required to satisfy our basic needs are generally aiming for some kind of freedom. Freedom from working as much, or at all, the freedom of your next holiday, of finishing your study, of whatever.
For me, it was the millions of little things.
Imagine going to McDonalds and seeing someone – let’s call them Bobby – order a Family Favourites Dinner Box – four boxes of fries, four burgers, four Cokes, and a box of nuggets. It’s such a calorific meal, that even when shared between four people, each serving still contains over half of your entire daily allowance of kilojoules in a single meal. Bobby sits there, eats a tiny fraction of the meal, just enough to make up a single serving, and then throws the rest in the bin.
Why? It’s not like there weren’t plenty of smaller options on the menu. It’s not like there wasn’t a homeless person out the front who might have enjoyed a meal. It’s not like it was the least expensive option available – in fact, it was one of the most expensive.
If Bobby told you it was to look successful and fit in, you would most likely be perplexed.
The national personal household savings rate has recently increased from 7.6% to 8.1%. Still, it’s a far cry from the all-time high of 20.6% in 1973.
We often hear 10% floated around as a savings goal to target. But Jacob Lund Fisker, of Early Retirement Extreme, has a unique perspective on savings.
If you save 10% of your income each year, meaning you spend 90%. At the end of 9 years, you will have amassed the equivalent of 1 whole years’ expenditure.
Effectively, you can buy your own long service leave through this plan. Imagine a year off work, all expenses paid, every 9 years!
Let’s take it to the next step though.
In the last two posts, I asked how much is enough, and what it means to be financially independent.
Now that you know how much you need, and where you sit on the financial independence scale, let’s combine the two: how much is enough to be financially independent? Continue reading “How much is enough to be financially independent?”
‘Why? Why? Why?’
As a child, I was constantly asking ‘Why?’
Of course, my father or grandfather would respond ‘Why is a crooked letter.’
It wasn’t until some time later, when I learned to form letters myself, that I understood this wordplay.
Like many who begin their blogs with this same anecdote, I never really stopped asking ‘Why?’ Continue reading “Why?”
