At it’s core, financial freedom occurs when you are able to generate enough passive income (i.e. income from investment sources other than a 9-5) to support your lifestyle.
That said, financial freedom is different for everyone. If your lifestyle includes $2,000 a month in expenses, saving, and creature comforts in the middle of America, great! If you live in southern California, $2,000 a month might be your grocery budget line item.
I kid. I hope.
Currently, my household expenses are $4800 / month. My income from rental properties is -$500 / month.
Obviously, we have some work to do!
The near-term plan is to build a rental property portfolio that generates at least $4800 / month. But, WonderMan won’t quit is job at that point.
Our goal is to generate $10,000 / month such that working a 9-5 is optional. Honestly, he probably won’t ever stop working. I admire that in him.
We want the option.
What number makes financial freedom an option for you?
Anita Dhake (pronounced Dah-kay) is my guest on this episode of the Midday Money Show. She cashed in on her option to stop working. She didn’t like her job as a corporate attorney. She has a passion for reading, exploring other cultures, and spending time with family.
At 35, this former corporate attorney walked away from a lucrative, high powered career for a life that more her speed.
What I love about her story is she didn’t just dream about the possibilities, she figure out a way to make them happen. It’ started with an aggressive debt repayment schedule. One year to repay nearly $100,000 in student loans is impressive.
Yes, she had an impressive income. She also made specific choices to maximize the power of the income she had. Instead of heading to the Gold Coast (a high rent district in Chicago), she opted for a shared apartment in a moderately priced area of the city. She gave away her car and she kept her expenses low.
Is your budget bloated? Can you find savings by adjusting your lifestyle?
Five years later, Anita is circling the globe and sharing her story of thrift, savings, and the power of a plan with the globe.
Don’t focus on her income. That’s why I didn’t even ask what she made. Why? That can be a distraction.
Her timeline of five years has nothing to do with you.
The point is, we all have options. Your decisions will dictate your journey. Maybe you need to take on side work to make more money. Maybe you need to take an honestly look at your spending habits and identify needs vs wants.
The beautiful point of her story is that she had a plan, she figured out a way, and then she executed on that plan.
Let’s not forget, she paid off that debt first!
What is your financial freedom number? Leave a comment on the new Midday Money Show voicemail. Call: (773) 893-0241
“If you think it’s impossible, it’s going to be impossible for you.” ~Anita Dhake
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