How to make a plan for financial independence by Joe Goldberg

"Read "Your Money Or Your Life""

How I did it: You should read the book "Your Money Or Your Life".  It totally changed the way I think about money, and helped me realize that I'll only need paid employment for a finite period of time.  After that I can "work" on whatever I want.

The main points of the plan are based on the abbreviation "FI":

Financial Intelligence:
  • Figure out my real hourly wage, after taking into account every work related expense (in either time or money) such as commuting, dress clothes, time/money spent "decompressing" or "vacating".
  • Chart my income vs spending.  The difference is savings.

Financial Integrity:
  • Minimize spending by putting it in line with my life values.  Cut down on things that go against my purpose in life, and spend more on things that bring real happiness.
  • Maximise my earnings, to the extent that I'm working in line with my values and health

Financial Independence

  • Invest the savings wisely in a way that earns predictable income.
  • When investment income surpasses spending, I'm financially independent.


 

Apr 20, 2011, 07:51PM PDT | 2 comments | 11 cheers


Comments:

(This comment was deleted.)

Apr 20, 2011, 08:50PM PDT

jazzdrummer is contemplating mastery

Have you actually reached...

your financial independence or have you just charted out when that will happen, etc?

Good post!

Jan 09, 05:22PM PST | Thread | Respond to this

Joe Goldberg Working hard

Heh, I wish! It’s years off, but still nice to know that there is a date out there after which I’ll only need to work if I want to.

Jan 09, 09:25PM PST | Respond to this


Joe Goldberg has gotten 11 cheers on this entry.

 

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