Vlog 220: My version of financial freedom.
In the Netherlands there are several stories of people won a lot of money in the lottery and then spend it all on consumers goods. And that's really sad. Because it's such a waste of a good opportunity.
For me, financial freedom means having investments that in total generate enough income every month so you can pay the bills and other things you like to do.
In that way you don't have to touch your base but can live of what your investments generate.
And, yes. You might not be able to buy expensive stuff. But you do get financial freedom in return.
And I think that's way more valuable.
I talk about it more in my vlog.
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Great post ..Well done
Investment is a culture and self-awareness we need
Thanks for sharing
Definitely an important topic to talk about @exyle! Would you say financial freedom is the same thing as financial independence?
I've calculated that to be financially free and have a netto month income of €2.000 per month, you basically only need €625.000 invested in World Index Trackers with the assumption of 7% return per year. This way, you wouldn't have to touch your principal amount, which is key to financial independence!
For the last 90 years, this has been the average return on the stock market (dividends + price increase) and should be doable (although I would wait out the upcoming crash/correction on the stock market before putting money in). I am not even talking about investing in crypto, which currently seems to have much higher returns ;-)
Personally I am aiming for a combination of investments in crypto, index trackers and real estate.
Of course that €2.000 netto is only enough for 1 person. When you are with 2 people, you need approximately a little bit less than €1.000.000 (and not talking about potential costs of having kids of course).
I believe this is actually quite doable and achievable if you don't spend too much money on consumer goods. And here I am talking about 'retirement' in The Netherlands. If you retire in South-East Asia, you need a lot less and can be financially free much earlier.
Btw, great move of cancelling that contract with the big client. Must give you a lot more freedom and a good feeling of not having to be on call 24/7. I am curious how you feel when you cancelled the last one of those 24/7 contracts, must be amazing!
Keep up the good work!
Yes, you can live with less in a developing country. But in places like the Netherlands you have your medical expenses pretty much covered by being a citizen or a permanent or semi-permanent resident. Getting cancer or a stroke can be a total financial disaster in a third world country or a country that doesn't have universal coverage if you don't have an insurance policy with extensive coverage. Such insurance policies tend to be quite expensive. You should factor that into your cost of living in a third world country.
That is a very good point! Never thought about it like that. Thanks for commenting :-)
When you're young you are better able to risk living in a third world country from a cost of healthcare point of view. But if you're middle aged or old the prospect of becoming seriously ill should give you a pause. Also, if you become incapacitated by serious illness, you could end up in a horrible place unless you have become part of a community of trustworthy people. In welfare states, you will be taken care of by the system.
Check out Mr Money Moustache, he explains the (rather simple) math behind "retiring early"
https://www.mrmoneymustache.com/2012/01/13/the-shockingly-simple-math-behind-early-retirement/
http://www.mrmoneymustache.com/2011/09/15/a-brief-history-of-the-stash-how-we-saved-from-zero-to-retirement-in-ten-years/
Thanks! I know Mr. Money Moustache and I actually did some of my calculations based on his ideas ;-) Great guy!
I'm generating the same kind of income, though my investment costs were waaaaayyy less. I know everyone is not a fan, and some people are very sceptical, but Bitcoin mining has given me total freedom from the corporate office job I used to have.
My initial investment was around $30 000, and I now generate anything between $1500 - $3000 per month. Just letting you know, there are alternatives :)
That was a good move @andriesvw! Awesome that you have been able to do that :-)
If a global cryptocurrency become dominant, then the arbitrage benefits of living in a poorer country with lower USD forex rates will be less.
It is said that a penny saved today is the penny earned tomorrow. I truly agree with your opinions.
@exyle,
You are absolutely correct! Some people think Financial freedom means we need to spend as much as we can. But it's not correct and what you said here is the correct meaning of the financial freedom!
Cheers~
That's awesome! You mentioned in your post you see people announcing that they're going full-time Steemit. I just made a similar announcement today! I'm hoping to integrate my marketing consulting business to lean heavy on Steemit so I can go full-time into the platform without have to build Facebook ad campaigns!! Lol Thanks for the post! Glad to see what an awesome impact Steemit has had on you over the last 1.5 years! :-)
https://steemit.com/steemit/@brettcalloway/looking-to-go-full-time-steemit-by-summer
Yeah that is totally ture. I remember there was a proper documentary on a person.It was an experiment, he was given money to live and I guess it was aroung $500k and within one year he was bankrupt again. So you can only spend wisely if you earn it through hard work and you know it includes your blood and sweat.
In last 5 months I have turned my $350 into $5000 and I haven't bought much or anything big for myself. Now I am planning to buy MacBook in a month or two from my earnings.
Financial freedom means a lot and it coincides with your background.
In the US you need more but some states if you have a good start you can manage.
Keep on steemin'
Mark you are Very much what FREEDOM is all about and you can teach others through STEEMIT how to follow in your foot steps @exyle by being consistent. The people that are Successful on Steemit treat their blog or vlog's like a business and they are the CEO. Once you have a Following and have created cash FLOW you are then FREE.
you just hit the nail on the head man. your definition has explain it all about financial freedom, and it also work in the same part of my.
Steemit have also being one of the source of my financial freedom, Even working as heavy duty automobile operator, Steemit has now help me in a way I can now save 80% of my salary in a month. Which as also make life easy over here.
Thanks for sharing Mark
Man, that is fantastic to read. Congrats!
Wow the temperature is at -8 degree and the sun is out that much? That's awkward though . It's really hot over here.
Speaking of financial freedom, I don't think there is a better explanation that that which you have given in you video.
To me ,financial freedom is being able to afford the basic things you need just when you need them without stress and that's what many fail to understand . People get to have their monies in their mouths and that's why you see someone rich today and por tomorrow simply because he failed to invest and so I think you video is a wake up call.
thanks for sharing
It's -8 it's +8 :). So lovely weather all around. Yes, no stress sounds good. One of the reasons I stopped the contracts.