When can I consider myself financially free? Part 1

Everybody knows that it’s great when comes the time when we don’t have to worry about money anymore. Everybody agrees that being financially free is awesome. One key question though. When can you consider yourself financially free? The answer to this question depends on the individual.

For some, 4,000 dollars per month is sufficient. Some would need 100,000 dollars every month. It really is up to the person.

To start your journey towards financial freedom, I believe that the fundamental question you need to answer first is “how much is enough?”

How do you solve this question? Firstly, project yourself to the future. In what sort of life do you see yourself in? Then work out a rough budget. Some questions to answer:

1.Think about where do you want to live. Will you be renting or buying.
2.How many children do you want. What is your plan for your children’s education.
3.How many times per year would you like to go for your holidays. 4.How often are you going to replace your car.
5.Think about other expenses as well: Food, Bills, Insurances, and etc.
6.Allowances for you and your family to just go out and splurge.

One reminder. Always be a realist. What I mean by this is, always aim for a figure that you can easily achieve first (i.e. aim for a sum of money whereby with that, you can live your life comfortably and happily without having you working 9 to 5). After you have achieved the first target, then aim for a figure where you can live your life like a stinkin-rich person. Of course, you might not agree with me and would prefer to aim for the sky straight away but remember, this is just my opinion.

To sum it up:

1. Work out a budget that allows you to live comfortably in the future.
2. The figure you get, that’s your first target.
3. Have a second future budget that allows you to live your live like Lim Goh Tong as well. After the first target has been achieved, then aim for the second one.

InsyaAllah, in the future, I’ll put up another posting with regards to this topic.

Till next time, good luck!

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