When you reach financial independence or retirement, you may eventually feel empty. After years of hard work, aggressive saving, and smart investing, you may feel frustrated that your toughest financial challenges are behind you. Based on reader feedback since 2009 and my own experience after leaving work in 2012, I’ve realized that having a purpose is essential to living a fulfilling life.
To find meaning after retirement or financial independence, staying active is key. Although I previously discussed balancing active and passive income in specific ratios, the true path to fulfillment may be simpler:
Focus on generating active income to cover your discretionary needs while relying on passive income to meet your basic needs. This approach allows you to stay on target, continue to protect your financial future, and live a more fulfilling life after work – a triple win!
Active income is for wants, passive income is for needs
Life is a series of challenges. After overcoming one of these problems, you may find yourself asking, “What’s next?”
For me, there are two goals that have kept me focused since I left my corporate job in 2012: to continue writing Financial samurai And raising my children. These activities motivate me to stay healthy and build more passive income. Without them, I might have drifted into a disorganized life, perhaps going to Southeast Asia and never coming back.
Despite the demands of parenthood, I’m constantly looking for new ways to stay involved — especially now that my kids are in school full-time. sniff. Their absence during the day created a emptiness of over 40 hours a week, pushing me to find more purpose after being a stay-at-home dad since 2017.
Identifying my needs and then earning money to pay for them has been really helpful in keeping busy. If you feel empty, I suggest you do the same. This is what I call “linking”.
While it’s smart to use stock market returns to buy fun, practical things when times are good, spending “free money” doesn’t bring the same level of satisfaction that comes from achieving something through… an effort.
Below are some personal examples of desires that motivated me to earn an active income.
1) New wardrobe
My track jackets are 4-5 years old and it’s time for a replacement since I wear them daily. Instead of spending $120 on a new jacket, I initially spent $27 to fix the zipper. A year later, the zipper broke again, and the jacket became even more frayed. What is my solution?
Earn enough active income to fund new income. While I don’t needs New jacket, I want one. To achieve this, I could teach private tennis lessons for $140 an hour at my local park. Along the way, I’ll meet new people and stay active. The more clothes I want, the more lessons I will have.
2) New family car
My current car is 10 years old in July 2025, but only has 59,000 miles on it. Although it works well, I’m attracted to the technological advancements and safety of the newer models. Safety first when it comes to driving around the family. Replacing my 2015 Range Rover Sport with a 2025 model would cost about $120,000, which is a ridiculous amount of money.
To follow my country The 1/10 rule for car buyingI would need to earn $1.2 million in gross income, minus my current passive income — a big gap of about $900,000. This challenge may push me to pursue additional consulting and expansion Financial samurai Partnerships, or finding a full-time job.
Alternatively, I could continue to maintain my current car for $1,000-$3,000 per year or completely rethink my car preferences. My current car should easily be able to last another five years. Meanwhile, a well-equipped all-wheel-drive Honda CR-V for $35,000 seems like a solid choice. Earning $50,000 in active income to meet the 1/10 rule is more achievable than trying to cover a $900,000 gap as a retiree!
By requiring yourself to earn money to cover your needs, this is normal Asking if those desires are really worth it. Now that I think about it, I have no desire to spend 2,000-3,000 hours trying to buy a new luxury car that I don’t need. My time is very valuable.
3) First class return tickets to Honolulu
When I was 47, I used premium economy tickets for an additional 30-50% premium over economy, for example, $750 versus $500. It’s a promotion that took me 22 years out of college to accept.
However, first class tickets cost 3-4 times more than economy class, which seems like a waste since we all arrive at the same destination at the same time. Plus, first class still serves rubber chicken meals and I don’t drink much.
If I decide to spend an additional $1,200-$1,500 to fly first class to Honolulu, I will fund it by generating active income. For example, I might conduct more one-on-one personal financial counseling sessions (on average one per month) to cover discretionary needs like these. Helping individuals overcome their financial challenges is truly fulfilling. Having this additional purpose for consulting may motivate me to meet the demand and help more people.
Now I have to decide whether saving $750 for a five-hour flight by simply sitting in Economy Plus is easier than doing more consulting.
Leave your passive income alone to cover your needs
Linking your financial desires to active income not only keeps you engaged, it also fosters the discipline of distinguishing between needs and wants. By challenging yourself, you can enjoy the luxuries of life without feeling guilty after a fire while maintaining a strong financial foundation.
Unlike a grown-up child whose parents give everything, you’ll feel a deep sense of pride and satisfaction when you know you got your purchase – a priceless feeling.
By generating active income to cover your needs, you allow your passive income to continue growing. Since risky assets like stocks and real estate tend to rise over time, reinvesting your passive income allows you to double down and build greater financial stability over the long term.
However, if you find your motivation waning or you experience a stagnation in life, you might consider one last strategy to build wealth and purpose: Self-sabotage.
Self-sabotage can provide renewed purpose in retirement
Perhaps the greatest danger in retirement is the natural tendency to drift toward inactivity. Without self-discipline or a compelling reason to stay involved, the default path often leads to complacency. Why don’t you have flat abs or always have a clean house?
That’s why intentional self-sabotage can be an effective strategy for keeping you motivated and energized.
For example, in the second half of 2023, I sabotaged myself by buying a house I didn’t need. This decision reduced my passive income by $150,000 per year. During the first 3-6 months after purchase, I became more concerned about saving as our finances were more fragile. However, when I learned that my daughter would start school full-time the following September, I knew I had an upcoming void to fill.
More motivation and purpose to earn
Since then, the lack of cash prompted me to do part-time consulting for four months, which re-opened my eyes to the world of early-stage startups. This experience also gave me a renewed appreciation for the freedom I’ve enjoyed since leaving my job in 2012.
The self-sabotage has also motivated me to finish a new second book with Portfolio Penguin, due out in May 2025. Writing a book is hard because no one flogs you for writing. It takes tremendous self-discipline to translate creative ideas into a logical and entertaining story. Then comes the painstaking process of going through dozens of rounds of editing with multiple editors to refine and polish the manuscript.
Living paycheck to paycheck during those six months also led me to explore more job opportunities Financial samurai. These projects have introduced me to new people over drinks and dinner and helped me discover products that I think will benefit readers.
Setting a clear goal to “pay off” my house, a massive, unnecessary desire by December 31, 2027, has recharged my batteries. Without this self-sabotage, I might end up spending my days playing pickleball and doing nothing else.
Embrace your desires by earning active income in retirement
Buddha once said: “Desire is the cause of all suffering.” In personal finance, desire is often viewed as a negative. But by channeling your desires into purposeful actions, you can turn your retirement into something truly special.
Here’s to fulfilling our desires responsibly and finding purpose at every stage of our financial journey!
Have you, readers, noticed a decline in discipline after retiring or achieving financial independence? Do you challenge yourself to actively earn for the things you want? What strategies do you use to ensure your investments continue to grow, enable more passive income and maintain your financial freedom?
Generate more passive income through real estate
In the past, generating passive income through real estate typically meant becoming a landlord, which could be a real pain. Today, you can easily make real passive income by investing in REITs and private real estate funds. One option is Fundraisingwhich specializes in private real estate funds focused on commercial, residential and industrial properties.
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Personally, I have invested over $300,000 with Fundrise to expand my real estate portfolio and learn more Private AI companies. Fundrise is also a long-time sponsor of Financial Samurai.
Earn Active Income to Fulfill Needs, Use Passive Income to Fulfill Needs is an original post by Financial Samurai. Financial Samurai was started in 2009 and is a leading personal finance site today. Join 60,000 other people working to build wealth and sign up for my free weekly newsletter here.