How much Money is Enough for you?
I was recently reading an article about Financial Independence, as this is one of the most talked topics in the personal finance domain. A lot of self-proclaimed financial gurus talking about their journey to Financial Independence as well you see 100s of questions on Quora about it. So what exactly is Financial Independence, I have taken the definition from Investopedia
Financial Independence, Retire Early (FIRE) is a movement dedicated to a program of extreme savings and investment that allows proponents to retire far earlier than traditional budgets and retirement plans would allow. By dedicating up to 70% of income to savings, followers of the FIRE movement may eventually be able to quit their jobs and live solely off small withdrawals from their portfolios decades before the conventional retirement age of 65.
PC: Pixabay.com
Now in simple terms, Financial Independence is that an individual will have enough money to live their whole life without doing any job, which can be achieved through saving 70% of one's salary. That means to attain financial independence you have to live with 30% of your salary, now that's somewhat impossible for me for the current salary which I am drawing. Though I am not talking about myself here, it's all about the general public might be for some it's feasible and for some, it's not. What actually I am curious to know is how much is enough for an individual, enough to retire early, or enough to not work again.
Now enough can be enough for survival, if you want that then you can achieve Financial Independence too early, enough for comfort then it will take little more time whereas if you want enough for luxury which will be a lot considering what all luxuries you want. For survival, you will not purchase anything only essentials whereas for the comfort you will be purchasing essentials and some gadgets whereas for luxury you will purchase whatever you want.
Now if I talk about myself I want comfort, where I will not buy things which I don't want at all but I will buy stuff which will make my life a little comfortable. I will not buy a house but I will rent a 2 BHK instead of 1 BHK for my family because I have earned to live my life comfortably. But again for me, Financial Independence means that I will not do 9-5 job, but I can still spend my time online to do some part-time hobby or can wander around to get cool photos which I can sell. For me, financial independence means that I will be away from the pollution and population of a city, and stay peaceful in my hometown. For me financial independence does not mean I will not work, for me, financial independence means that I will work if I like to instead of getting forced upon.
PC: Pixabay.com
Now to achieve the financial independence I have a figure in my mind that is that much I will need, but I know its enough because you never know what is the feature looks like. So my question is for you, how much is enough for you. Since I have been working from the last 8 years and I know what's my total income till now and what is my total expense till now, thus I know I have not saved enough but I am not actually worried about my past. The next thing is to check my assets and liabilities, the good thing is that I don't have much liability i.e. no loans at all and thus it gives me much more freedom to achieve the financial independence.
But the only thing which I always think before going to Financial Independence is why to waste your life energy now to have a better life tomorrow, will you live in the future? The energy we have now is the precious life available to us, and the money we get as a salary is by trading that energy. That means we all are doing a business selling our energy to get the money from it, and thus we need to make most out of it to be financial freedom. But the energy we have now will not be there when we get older, so even if we save 70% of the money don't forget to invest in yourself too. Because investing in yourself makes you enjoy that freedom which you get after financial independence.
What's your plan for Financial Independence?
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quora is on the best website I have ever seen, the answers there are really different, guniene and unique.
Yes you are right the money is never enough.
yes i agree. It's never enough no matter how much you earn, you will always get sort in saving money unless you plan for some relief.
That's absolutely correct, we need to remain in our limit in that way we can make money as enough.
Yeah and it's better never let it go.
ya your are absolutely right.
Money is never enough, the only thing is that we need to spend less or spend what we can afford in that way it's better to stay in your limit.
ya well said but, Dil to pgal hai😋
Yep, the money is never enough. The more you have the more you need generally. I could never live with 30% of my salary 😃 Well, if I really wanted, I could cheap out entirely but I'm a young adult. I don't see myself enjoying the years cheaping out my good years, so no.
Yes we need to enjoy too in our initial years. Thus I am doing 70% expenses and 30% savings and thus my FIRE date is actually postponed by 10 years but I am ok with that.
Right now, my future is very uncertain and no control over it. Factors being
So I will have to work through one by one before I'm clear of my future.
If I want to make a statement how I will be after 10 yrs.
Away from city
Own farm
Constant source of income through the Farm
If all 3 are achieved, I will adopt atleast 5-10 dogs to live with
😬
And some savings
Your plans are good too, specially the one to rent 2 bhk than buy 1 bhk 👌
Yes you have a defined goal and thus you need to work one by one and thus defining a goal and working on them is the best way to get forward.
the FIRE people want to save and then live of the interest and with rates at 0 that will not work. Putting it in the stock market sounded like. a good idea before 2020, not so sure now. But i am sure that most people do not want to live of their saved capital.
My idea of FIRE is similar to yours. Having enough income to do what I want without losing to much comfort and being able to live of my "hobbies"
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That's absolutely correct, out here the FD gives around 5.5 percent but the inflation is around 6 percent thus keeping in FD is never a choice. I do invest but again getting a passive income is what we want to get the true meaning of FIRE
Very tough questions you put up😅!
Well i never decided any fixed limit for myself. I just set my one goal, and once it's achieved i go on another one. This way I'm keep growing one goal to other.
And when i say about the financial independence than as a student i don't know what I'm going to get😅, what to spend and what to save! I just never want to do the same thing throughout the life whether its work or rest.
I want to get through different things of life 😊. This time I'm learning the ways to make plans for future 😅.
Wow, that's a great plan. If you can do that what you love is the best thing you can do. I love coding but I don't want it to be doing whole my life. I also wanted to do different things in life but for that yo achieve I need to have passive income for my monthly expenses.
FOR ME I JUST WANT TO DO WHAT I LIKE AND ALSO FROM THAT IF ITS POSSIBLE GET SOME EARNINGS. I am not doing any job right now but i know what i want in life. It's neither that big nor that small. Most importantly want to be in such place Where you can find least amount of noise pollution. Away from the crowded cities.
That's called getting peace of mind, I think everyone wants it bit not everyone gets it. Hope you get what you want.
Not till. But hope soon will☹️
FIRE has been such a popular concept. Glad to see this.
My go-to plan is to grind harder. In my mind:
"Saving is okay. Investing is important. Earning even moreso now than ever."
That's absolutely correct, nothing can replace earning but again Investing and Saving should be part of it as well as getting passive income.