Financial Freedom: How much money is enough?

At what point do you know you are financially independent?

Define 'Financial Freedom' To Avoid Burnout

Like a hamster on a wheel, we work ourselves to the ground trying to maximize our income at all costs, not knowing the finish line. How much money should you have in the bank to 'feel' financially independent? Let's talk about this today.

Financial freedom is the point when income from your investments can cover your expenses & financial goals.

It can be a life-changing concept. You don't need to work to generate income to:

1. Cover your expenses; or
2. Make investments needed to meet your future financial goals.

But this approach needs clarity about your financial goals. If you change your financial goals, you go back two steps (or more) that may require you to work to earn income and make investments to reach your 'new' financial goals. The old plan doesn't work anymore.

Steps To Achieve Financial Freedom

1. Dreaming the Big Dream: How much money is enough?
2. Financial Reality: Where are you today?
3. Financial Goals: What do you want in life?
4. Financial Plan: How are you going to get there?

Don't worry if you don't have clarity for the above points today. We will deep dive in each one over the next few weeks.

Action Of The Week

Dreaming the Big Dream: How much money is enough?

This is a tough one to crack because most people want more money and want to be super rich. But gaining clarity on a precise number that you believe is sufficient to live a full-life is critical for mental peace. We are continuously bombarded with so many temptations, desires and role-models in media who live fancy lives, that it's easy to get carried away. For someone I know, the financial freedom number is ?3 crores in investments. On the other hand, another friend believes he needs to have personal investments worth ?35 crores.

So how much money is enough for you? This is the number that you believe is your finish line. Write it down now and we will come back to this number in a few weeks.

Time to Reflect: Isn't it liberating to know what is the exact amount that you are going after? This is what I call a?'Moment of Clarity'. I'm sure you have many questions but trust the process, trust yourself and trust me to help you figure it out.

"Financial independence is about having more choices." ~ Robert Kiyosaki?

Flashback: Last week I wrote about being debt-free as the first step towards becoming financially independent. Take a look if you missed it.

Thanks for reading!

Darshan Doshi