FORGET FINANCIAL INDEPENDENCE, YOU WANT TRUE FINANCIAL FREEDOM.
“But financial independence sounds awesome” – if you aren’t new to the concept that is probably the first thought that entered your mind. Yes, it is much better than the situation many people are in today. I won’t attempt to argue otherwise.
Yes, there is an obvious but in this that many people are looking past. Optimizing your life is awesome and I’m an advocate for anybody starting out to do it. Cutting expenses, lowering your lifestyle, all of these things are paramount for most people to start getting on the path to a solid financial future. It’s true.
But if you think the life of Mr. Money Mustache on 28k a year is for everybody and it’s the ultimate joyous adventure I have to interject and say… You are mistaken.
I’m sure this gentleman is very happy and his principles are great for people starting out to adopt, we could all use some hard manual labor to feel accomplished. But the bottom line is you would probably find more happiness at 128k per year in retirement spending than 28k. Nicer vacations. Nicer vehicles. An upgraded home. Etc….
That is Ed Mylett’s lake home, a second home for him. Ed is worth a reported 200M, far beyond true freedom but I’m trying to make a point. You can be happy on a bicycle to a certain extent no doubt, but given the choice, most people would take picture number 2 for their life I’ll wager.
Wealth is awesome, that’s just a fact of life that the sooner you take stock of the better off you will be. Money is not finite and living in a “FI” way of saying “28k per year for life is my plan” isn’t a future many people will actually want.
I understand that for those slaving away in a cubicle day to day the promise of never doing that again and a meager “FI” existence is enticing. I’ve spent some time in my life inside of a corporate cubicle. It’s not fun. Just isn’t. I don’t care how you slice that apple. But a life beyond traditional “FI” will be a more fulfilling life, I’m sure of it.
Enter what I refer to as “True Financial Freedom”.
As of today “FatFire” is accepted as the highest rung in the financial independence ladder and it certainly beats traditional “FI” from a lifestyle perspective. But I think the point of actual financial freedom is higher than that.
I would like to loosely define “True Financial Freedom” as a net worth of 7-10 million or higher. Not necessarily what the traditional wealth world describes as “ultra high net worth” which would be 30M plus, but a step above FatFire and a very different life.
Imagine the conservative 4% rule at 10M, you are now living on 400k per year. That is $33,333 per month, also known as a very nice high-end lifestyle. Comfortable. You can take that ski trip. And that Caribbean vacation. Drive the Mercedes with a built in massage function. Live in the multimillion dollar home. And you still won’t be eroding the principle.
This is not impossible for many people pursuing FatFire or a high level of general “FI”. You don’t necessarily even have to work longer, you just may have to work smarter and find the right advisor/financial planner to win this game.
I’m absolutely positive that the next level of financial freedom is the one that most pursuers of FI truly want if they are honest with themselves. This site is meant for a place to start your freedom journey and stick with us all the way to the end (spoiler alert, it never ends – I too plan to learn for life).
Do you agree that we need to define the final frontier of True Financial Freedom? If so leave a comment below and please join our FB group to discuss further. Thank you for reading and remember, enjoy the journey!
Let’s do the math
Calculate your mortgage or work with the compound interest to see what it can do to expedite your wealth building.