Sacrifice
Show Summary Today, I’m going to talk about something that’s been on my mind and it’s about sacrifice. Really, how your dreams and your goals are honestly on the other side…
Show Summary Today, I’m going to talk about something that’s been on my mind and it’s about sacrifice. Really, how your dreams and your goals are honestly on the other side…
Youâve probably seen dozens of lists like this, but letâs admit it – most of them center on locations that are already flooded with retirees for all the usual reasons. On this list, Iâm zeroing in on cities that offer tangible financial advantages to retirees. Sure, theyâre great places to retire. But each also offers […]
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It’s been two years since I last looked at my overall financial situation to determine whether I have the resources to meet my goals. In those two years, much has changed.
I sold my condo and bought a home in the country. I repurchased Get Rich Slowly. I invested in not one but three other businesses. The stock market has bounced around, I’ve begun part-time work at the family business, and I’ve made many other minor adjustments to my daily life.
With all of these fluctuations, I’m naturally left to wonder: Am I still financially independent?
As I’ve mentioned many times, financial freedom exists along a continuum. For the sake of this article, I’m discussing the fifth stage of FI, the point at which investment income supports standard of living.
At the end of 2016, I was FI (but only just). What about at the end of 2018? Do I still have enough saved to fund my future indefinitely? Let’s find out.
What if I gave you a lever arm to multiply your time by 10x, 20x, or more? You could work for just an hour, but get a full day’s free time? Would you be interested?
“Time is money,” my father used to tell me when I was a boy. He didn’t like how I dawdled with my chores. I didn’t understand what he meant back then. To me, time and money were two very different things. As a kid, I had lots of time but very little money.
Now, as a nearly fifty-year-old man who has written about personal finance for the past twelve years, I get it. Dad was right: Time is money â and money is time.
This notion is the central lesson of Your Money or Your Life, the personal-finance classic by Joe Dominguez and Vicki Robin. “Money is something we choose to trade our life energy for,” they write. “You are the one who determines what money is worth to you. It is your life energy. You ‘pay’ for money with your time. You choose how to spend it.”
The authors say that because you spend time in order to earn money, you’re also spending time whenever you make a purchase. This has some powerful implications.
Because of the time factor, Dominguez and Robin argue that you don’t earn as much as you think you do. You may be paid $33 an hour, but your real hourly wage is less than that. Possibly much less.