These 3 years plus is a wonderful journey, meeting new bloggers and friends who make this journey a much better one. We celebrate each other life journey from marriage to having kids, it’s really a whole community of friends from online to offline. Through blogging, I also receive several emails from readers who are in tough situations. Many want to seek out solutions to change their finances.
Most have no idea how to proceed and want to see light at the end of the tunnel. Finally, there are folks who are scared of their future and concerned that they would not need enough money. I was once lost too, worried and afraid for my future until I acquired inspired by an idea that changed my finances. It began with the idea of passive income, then multiple channels of income early pension and lastly financial freedom then. All I was held by this idea centered on where I wish to mind in my own life.
- Test on a small sample
- May 22
- Did you owe on your state taxes last year
- Replicate your best practices
- An ability to research problems and break them into deliverable parts
- January 17
It was not all perfect and I had to trial and error, fine tune and adjust accordingly. Life is about experience in the end isn’t it? The idea of early retirement that I chanced upon a couple of years back arranged the precedence for my life. Early retirement is often misinterpreted as being lazy, doing nothing and not working. This isn’t true in any way.
To me, it is more about providing financial assurance and security for ourselves as well as our family members. When we have the ability to take out the amount of money aspect off our minds, we may then truly purposefully live our lives. Just how does this work? Just how do we take action? If we just look at the table above, the original advice of saving just 10% of our income will ensure we can’t ever retire at all. That is already based on the 5% annual investment rate of come back on our savings. If we don’t make investments at all, it’ll be even worse.
Up to now, maybe some of you are still confused about how the numbers come about in the above table. Let’s take an example of saving 50% of our income this means retiring in 17 years. This does mean having financial independence after 17 years just by saving 50% of our income. 15,000 and make investments it at 5% investment returns. 387,605.50. If now he just put these savings and invest in some stocks which can provide him a 4% dividend yield, he’d had enough dividends to pay his expenses fully.
This is the idea of financial self-reliance. Obviously, there are numerous situations which may change in the 17 years such as expenditures increases and income should also increase as well. We would have to change accordingly to make this work. 5% investment return isn’t that difficult to accomplish. A lot of people can make investments and get more than 5% come back, which would speed up the development of their money. This idea is a motivation to help me focus on my long-term financial planning.