Sunday, September 2, 2012
Why am I doing this?
Because while money is really crumby at buying love or happiness, it's really good at buying time. When working for money is strictly optional, fifty to sixty hours of your week clear up immediately. With a home, basic utilities that turn on when I flip the switch, two cars and a moped, and enough cash to feed the family, I feel like I have enough money. I definitely don't have enough time. My life is a marathon sprint from one pressing need to another: to work, to the family, to church, to personal development, to recreation and back to go again. I want enough time that this series of sprints turns into a lazy, meandering walk.
How am I doing this?
By putting 60-70% of our take home pay into investments (well, kind of...more on that later), by aggressively paying off all debt, by looking for ways to boost my income, and by reducing expenses. Sounds like a plan, right?
What do you mean by financial independence?
I use a pretty standard definition: when one's passive income covers all expenses. There are some good debates to be had on what constitutes passive income (e.g. - with rental property, is it passive if you manage the rental, or are you working a part time job as a property manager?) but I figure, if you don't call it "work", then it's passive. I don't think calling a plumber to fix a leak at my rental "work", but if I'm on my knees sodering copper pipes, yeah, that's work.
Seriously, why are you doing this?
I want more time with my family, my friends, and myself. I want all my time for those things. It's a pretty selfish desire, I think. But that doesn't matter: I've got this one life and it might be more than half over, for all I know. What's left of it should be spent as freely as possible.
*This photo came courtesy of edenpictures at Flickr's Creative Commons.