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Feb 08, 2019 17:40:08

Understanding Financial Independence

by @basilesamel PATRON | 446 words | 388🔥 | 436💌

Basile Samel

Current day streak: 388🔥
Total posts: 436💌
Total words: 205852 (823 pages 📄)

When I was a child, I wanted to be a mad scientist inventing crazy machines. At 10 I wrote about becoming an engineer. Upon graduating from engineering at 23 I became an entrepreneur. Mastery has always been my purpose: creation, knowledge, helpfulness with a twist of activism... this is what I live for. Every apprentice on the path to mastery must make its own things at some point, and every master lives off making her own products. Many people want to start their own business. Broadly speaking, many want to live life on their own terms.

I'm lucky enough to have a passion for a craft where decent jobs are plentiful and where it's simple to launch your own business (but still hard to grow) - software. It gets tougher in artistic ventures. Maybe you lack the confidence to make an attempt at building your own sustainable business and you decide to leave it for "a time where I will have acquired enough experience".

In the collective unconscious, Financial Independence is the line between what I have to do and what I want to do, a gateway to a delayed life. You might be in a situation where you don't really like your job but you still have to pay the bills and feed your kids. Or maybe you already launched a business but it's not generating enough revenues to work on it full-time. There is nothing wrong with the delayed life plan mentality. You need money to eat or to buy the land that will grow your own veggies. Not everyone can leave a job overnight. However, you have to actually take steps towards making your wish a daily reality, towards financial independence.

People don't want money, they want the freedom that comes with having money: spending more time with your loved ones, work from anywhere in the world, become a painter or a writer full-time... in most cases, you don't have to be a millionaire to do so. What you really need is enough money to sustain your desired lifestyle: this state is called Financial Independence.

Now, how much money is enough money? It's a question with a simple general answer called the 4% Rule: you need 25 times your annual spending saved and invested in financial assets. It sounds like a magic number. There is a lot of theories and controversies behind it, I prefer to let you make your own judgment. Here is an article I really like about the subject: The 4% Rule: The Easy Answer to How Much Do I Need for Retirement. It's a simple general answer, though coming up with your very own personal answer is a huge introspective work.

To be continued tomorrow...

Originally published at makermag.com

  • 1

    @basilesamel nicely written ✌?

    lowen flowen avatar lowen flowen | Feb 08, 2019 22:24:04
    • 1

      @flowen thanks man! :) just saw you're back haha

      Basile Samel avatar Basile Samel | Feb 09, 2019 13:33:42
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