Wednesday, November 2, 2011
Financial Freedom, Being Debt Free and Quitting My Job
Today, I asked myself 3 questions:
How long more do I need to achieve financial freedom?
When will I become debt free?
How long more must I work at my job?
After so many years of working, it seems that I am no where closer to my goal and dream of financial freedom (where my passive income will surpass my monthly expenditure). I did a quick calculation and estimate my passive income to be slightly around $2800 per year. That is much less than what I thought I would have achieved 3-4 years ago when I first started out on this journey. It seems that I will still be taking a long time to reach my true goal of financial freedom. Over the years, my monthly expenditure has also crept up slightly. This can only mean one thing: I NEED TO WORK HARDER AT MY GOAL!
Being debt free of course is one of the things that I look forward to. It simply means having more disposable income to play around with. Of course, if you manage to borrow cheaply, it does not make sense to pay back the loans if you can get a higher rate of return compared to the interest you are paying on your debts. However, I don't know...perhaps it is just psychological. But being debt free is something that I hope to achieve. Well, at least I mean clearing my bad debts (e.g. car loan). Good debt is still welcomed.
Well, the last question that I asked myself is really related to the first 2 questions. When I can quit my job is probably the day I am certain that I have attained financial freedom. It is not that I hate my work or anything. It is just that I feel I can be doing so much more with my life and time then having only remnants of my time to give to my family and friends.
I want to work for the rest of my life. But I don't want to have to work for a living (a.k.a having a job).
Time to get down to business.
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