Updated: September 24, 2014
Why do I want to achieve financial freedom?
It’s not because I want to live a super swank life with all the “bling” I can afford.
But as I’ve said in my life story – it’s because I simply wanted more TIME for myself and to do the things I love.
And this is a passion that I believe I share with Ryan, our guest blogger for today, who shares below how he plans to achieve his own financial freedom.
When you think of retirement, what comes to mind?
For me, retirement doesn’t mean palm trees, pina coladas or golf courses…
It means Freedom!
Freedom to do what I want, when I want, where I want.
Is that selfish? Probably a tad, but I think it really depends on your motivation.
I realize that I have to take care of myself before I can help others, and I’m truly interested in helping others in my life. If I’m broke, stuck in a 9-5 and purchasing a ton of consumer goods then I how can I fulfill that purpose to help other people, right?
So, as a recent college graduate I have decided on two primary goals:
#1 Achieve a mobile lifestyle before the age of 30.
As I write this post I’m 23 and ready to take on the world.
Recently, I bought a one way from Wisconsin to Hawaii to follow my passion of scuba diving while working to invest at a young age and pay down debts. I have some college debt, and some retirement savings, but I most importantly know how much I can live off of.
And currently I live in Honolulu for less that $1,000 a month!. Read my story and find out how I’m doing this so you can too!
To achieve a mobile lifestyle you must work backwards – first understanding what your expenses are, and then finding a way to make an income that can pay for those expenses.
That’s why I keep my expenses low. Working backwards has showed me that by making approximately $50,000 a year online as income would be enough to pay for my expenses.
Why $50,000? Because I need to pay about $12,000 a year in expenses I described above, and then I need to save for #2.
#2 Become financially free before the age of 40.
Building a mobile lifestyle through online income is something that is fairly stable, but not as stable as cash in the bank. I’d like to be worth at least $1 million before I reach the age of 40.
By working backwards I’m able to figure that I need to save, starting at age 23, $2,500 a month producing 9% interest to hit $1 million before the age of 40. (Do you want to calculate yours? Try the One Million Calculator here)
Now a lot of this is vague, but having these goals will at least set me in the right direction and encourage me to work hard to achieve my dreams and follow my passions, which in my case are shark diving and piano playing. I know, not exactly similar hobbies!
But, my money goals are not there to buy porsches or timeshares, they’re there to allow me freedom and time, so that I can do the things I enjoy most in life and have the ability to work from anywhere in the world.
How about you? What kind of things would you do if you had financial freedom?
Ryan is the guy behind Planting Dollars, a blog that talks about his own financial journey. He writes about personal finance, living a mobile lifestyle and starting small businesses there.
Do you have your own story to tell? Then why not share them here.
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Photo credit: abnelgonzalez and Barnaby