After publishing Why do we continue to spend although we know that we should not do thatI realized something important: the real reason I was not ready to spend a vacation this summer is that we no longer have financial freedom. I did not think about this fact until after I got many comments from readers on how to spend my money.
After buying our last house, I sold a large amount of shares and bonds to pay for cash. As a result, our negative income decreased temporarily from about $ 380,000 to about $ 230,000.
Given that our annual expenditures after the tax were about $ 260,000 at the time, we suddenly suffered a deficit. In definition, financial independence means having sufficient negative income to cover the required living expenses.
Relace of the savings decision
While writing this post, I justified not spending a holiday for the following reasons:
- It was not right to spend on stay when we already had a free place to stay with 3 backup bedrooms.
- None of the rental houses felt the reasonable value, and there were no options from the-10,000-dollar sub-with 4 bedrooms.
- We can use this money to invest in our children’s accounts for our children to help them in the future.
- The exact reactions of living under one roof create meaningful bonding opportunities for grandchildren.
All of these points are valid. but major The reason for not including it? I am on a task To restore financial independence by December 31, 2027, and spending 24,000 dollars on a rental house we do not need it does not help the task.
If there is one thing about me, it is that I am unavoidable when it comes to achieving my goals. Whether it is committed to publishing three jobs per week for 10 years after the launch of the Financial Samurai in July 2009, or the pledge to be a father at home during the first five years of children’s lives, I do not stop until the task is complete.
The options we make to achieve financial freedom
After renting our house for a year, selling it for profit, providing more, and re -investing part of the revenue, our negative income recovered to about 320,000 dollars. The shouting of high yields and interest rates, along with discipline and time!
Unfortunately, with each of the children at the Ingamas School in the Private Language, our annual expenses are about $ 288,000 after the tax. This is the total of about 360,000 dollars, which means that we are still running a deficit in the total annual negative income of $ 40,000. With a 4 % return rate, this means that we need to collect at least a million dollars in investment assets.
When the stock market was flowing in April 2025, we were closer to $ 2 million behind our investment goal.
Although I can balance our portfolio to more assets that produce income to cover all of our expenses, I have long believed in growth shares and private growth companies, especially now in the field of artificial intelligence. I want to let these investments work.
Without a fixed salary to reduce any financial shocks, the main lever that I can withdraw is Control of expenses. Therefore, I made the decision not to spend $ 24,000 to rent a four -week vacation. Upon risk -free return by 4.3 %, these funds can generate $ 1032 annually of negative income every year. This is another step closer to financial freedom.
Yes, the presence of my mother and wife under the same ceiling for five weeks is a sacrifice. But I also see it as an opportunity to deepen family bonds, especially among grandparents and grandchildren. Both women Shaban are beautiful and believe in their ability to live harmoniously.
In addition, there is a separate bedroom unit and two bathrooms connected to the home that has not been used for years. I plan to spend two weeks in cleaning and restore it to a living condition. This desire to make improvements to property is important for the future.
What are you ready to sacrifice?
When I grew up in Malaysia, I had four years of four -year -old friends in studio apartments with two rocks along the walls.
By comparison, four of us share three bedrooms and one and a half bathrooms that are hardly hard. If I can successfully clean the AdU of two bedrooms, then we must have more than enough space to participate in participating for five weeks.
Let’s not forget, we will be in Hawaii, not Kabul, Afghanistan. For me, it is close to heaven on Earth as you can get it. I imagine that some people may make fun of the idea that staying in Hawaii for five weeks in a free house can be considered a “sacrifice” at all. In many cultures, this is the base.
There are many people who cannot spend five weeks of work. Some cannot even take two. Many of those who eventually take a local stay to save money. My wife and I are both lucky and fortunate to have a free place to stay. This is what my grandfather imagines, may lie in peace, when the house was built – for generations of our family to enjoy.
Therefore, no, there is no room service, no swimming pool, Toto sheets, and Totta tablets 1000. A big deal. I am ready to give up luxuries to our closer goal of independence financially again.
It will not prevent me because I know how amazing I would be completely free for 11 years after leaving my daily job in 2012. I am sure my wife feels the same way when she designed her discharge in 2015.
Think about alternatives to feel more appreciated
Whenever I start feeling dissatisfied with the “ideal” situation, I remember myself thinking about alternatives. Do this always helps me feel grateful for what I have. Below are our alternatives to the incident:
- Get another survival in San Francisco, Sonoma or Tahoe (not bad, but not Hawaii)
- One missing person to try a new school that our children may attend for high school, because their current school ends in the eighth grade
- Mobility in the city center to work more than 50 hours a week under the Florence lights, in an attempt to climb the ladder of companies
- Traveling to work for weeks simultaneously (temporary escape, perhaps, but at what cost?)
- Obtaining a manufacturer by an insecure and shiny president by the wanted customers
- Work until 10:30 pm during the month almost every month in my wife’s job
- Forced to go to war to fight for the freedom of our country and then death
- I hope I spent more time with my father after their departure because we stayed in our place instead of them
When I put everything like this, spending five weeks with the family for free in Hawaii looks great. We will spend weekends at my aunt’s home on the beach or at a hotel to break things.
More options I have taken to achieve financial freedom
The choice of non -spending on a Huawei rental house this summer is just one decision to help reaffirm financial independence. Here are some options that I have taken the first time:
- He lived in a studio apartment with a room colleague In Manhattan for two years to keep the rent while building my career.
- I shared a bedroom with my girlfriend In an apartment with two beds and one bathroom in a noisy part of San Francisco for a year to provide more aggressive.
- Save and invest each weekly salary for 13 yearsAnd more than 90 % of each bonus invested the end of the year you received to maintain a 50 %-80 % savings.
- I joined the Faculty of Business Part -time For three years for 20 hours a week while working about 60 hours a week in financing to save time and money.
- I woke up by 5 am To write on Financial samurai For 2.5 years before heading to the office by 6:30 am, then I wrote for another hour after 9 pm
- Land Rover bought the second discovery Moss was named for $ 8,500 and led it for 10 years instead of distress on a new car like all my friends.
- Postponing children’s children is postponed for 3-4 years Because I was very focused on my career and wanted to reach the net value of the target first. This is one of the biggest regrets, waiting as long as one of the oldest parents.
- Reducing the size of a 40 % smaller and cheapest house in 2014 To save money and increase the semi -advanced income by renting our previous house.
- I crossed on the nights of a couple from my father Partially, because I did not want to pay $ 500 for American Professional League tickets, dinner, or stay away from the family to spend the weekend in Mexico.
Some of you may not agree on the options you have made, and this is completely good. You are not me. If we look back, I am grateful for most of them because they gave me the ability to negotiate the process of separation and liberation at the age of 34. I was hoping to focus on family planning sooner.
The value of financial freedom exceeds any of the sacrifices it made along the way. It is not soon.
The joy of savings and investment
Here is what many people may not realize: for personal finance lovers like me, Saving and investing himself brings joy. The more you save and invest, the more satisfaction is like a father. Therefore, skipping the rent of $ 24,000 or a $ 2000 first -class aircraft tickets does not seem to be deprivation, as it appears to be a progress.
Every night we stay in my father’s house is another $ 800 reserved. This leads me much more than happiness than accumulating a luxurious rental, and passing to pass. Why is the recession a major risk on the latest president’s identification policies.
In Hawaii, I prefer to be outdoors – boarding to the plane, diving, walking long distances or playing pickled ball or golf – from sitting inside. In fact, the more motivational place, the more motivating the house!
Personal options for personal goals
The options we make in seeking to achieve very personal financial freedom. You cannot tell someone how to spend his money if it does not spend you in this way.
Some believe that I sacrifice a lot. I think I will receive a gift – weeks in Hawaii with my family, free housing, and an opportunity to get close to my financial goal. It looks like a victory for me.
When I reached the goal of financial freedom by December 31, 2027, I will not look back, unfortunately, not spending $ 24,000+ on a rental house. Instead, I will appreciate the time we spent together, regardless of how many moments are involved. At the end of the day, your being with the family is the most important thing.
Readers, what options do you make to achieve financial freedom sooner? If you are already financial independent, do you look at these decisions as sacrifices – or simply no big deal? As we are old, is it normal for us to lose appreciation for what we have?
Suggestions to achieve financial freedom
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