We’ve written blogs about Financial Independence (FI) prior to this one. In these, the majority of the focus was on the fundamentals or the best way to prepare for the journey and reach it. In addition to bridge that gap in between us and we’ll also be focusing on the concept of financial independence and the main ingredient to making it a success: knowing what it is you’ll be able to do.
My desire to re-examine the topic could be due to watching a bit too much on The Golden Girls recently, but it did get me thinking. What could Rose, Dorothy, Sophia as well as Blanche do if finances weren’t getting out of the way?
It’s true that their lives look enjoyable — it’s comedy sitcom at the end of the day However, it’s important to keep in mind that both Rose and Dorothy operate out of necessity. Also, Sophia is living with daughter Dorthy and the other girls due to her medical conditions (and due to the fact that their assisted living home went up in flames).
The eldest of members of the family, Blanche has the house they live in. Even though she’s employed, she appears to do it more for funperhaps to satisfy her extravagant tastes! She seems to be alone among girls who has achieved financial freedom. She can do whatever she likes!
Planning for financial freedom prior toyour retirement age all begins by determining what you are looking to accomplish. So …
ENVISION ‘FUTURE YOU’
What do you think “future you” be doing once you’ve reached your financial independence?
The way we retire has drastically changed in the last centuryas well as in the years since The Golden Girls first premiered back in the year 1985. That means you probably won’t spend yours sitting on a rocking chair on the back porch, glancing at that gold watch every so often — or living with roommates-turned-friends in Florida, for that matter.
But, you could also take a break in the rocking chair …
- A 14’er hiking,
- going surfing,
- Running a marathon,
- visiting the city’s history on feet or
- playing a double game of golf.
It’s easy to see. The concept is that you’ll likely need to lead an active lifestyle and travel more after having reached FI even if you’re just traveling between home and your holiday residence or a short-term stay. However, recreation and travel aren’t cheap, especially when you intend to keep working. Therefore, you should plan out the things your plans are for what you’ll be doing.
PLAN FOR ‘FUTURE YOU’
A few general guidelines exist regarding how much you should keep in a savings account to “retire” at a certain age. If you’re looking at savings of 2 million or 10 times your income, these general guidelines could leave you much like girls rather than living a full-time life that includes traveling earlier. It is also worth considering an alternative plan in the event that such a thing happens, as Rose who lost her retirement, a crucial aspect of your initial plan is not able to be met.
However, you don’t need the most thrilling part of your days off from traveling to be going around and back between your home as well as the library.
What about …
- brunches with friends
- paddling on your local reservoir or lake
- taking yoga classes or going to the gym,
- showing family members and acquaintances your local attractions or
- or perhaps just enjoying reading your daily morning book with a special latte in or at your favorite coffee place?
Again, you get it. Also, those “off days” will require some amount of spending. Therefore, save money for the things that “future you” wants to accomplish. Also, a well-planned plan can save you from becoming an Sophia to your child Dorothy.
Then, when the moment arrives …
LET ‘FUTURE YOU’ DO YOU!
When you attain financial independence, remember you’ve been planning and saving for this expenditure as well … do!
The transition from a working to a financially independent life isn’t easy and you might want to protect your savings. However, if you’re not making plans for savings that will last forever then why not start now? If you’ve already done so an account for your forever savings, it’s likely to be distinct from your savings for FI-use.
We’re also here for you. Please let us know if there’s a need for some motivation to be the self you’ll be in the future “past you” had been thinking about, or whether you’re getting an approval for you to …
- Leave your job that is stressful to begin a relaxing part-time job,
- Live on the cruise ship for a whole year,
- Get your ticket booked for the initial stop on the trip around the world,
- Start checking each national park off your list this summer.
- Go on that international wine tasting experience with your best acquaintances.
Whatever you think of “future you” doing, we’ll help you reach your goals. If you’re thinking of an early financial independence or are anticipating the retirement years to come, incorporate those dreams into your financial planner as well … start started!
