The Long, Arduous Road To Financial Independence

“Anything in life worth having is worth working for.” – Andrew Carnegie

What do you really want out of life? When’s the last time you asked yourself this question?

I ask myself that very question all the time. Every morning I wake up much earlier than I’d like to trot down to a job that doesn’t align well with who I am offers such an opportunity to evaluate what I want out of life and whether or not I’m doing all I can to achieve it.

What do I want? I want complete freedom. I want to own my time. I want choice. Therefore, I need to become financially independent.

I’ve worked incredibly hard over the last few years to get myself into a great position to reach for financial independence. I’ve lived way below my means and used that excess capital as wisely as I can – investing in high quality companies with enduring competitive advantages, and those who reward loyal shareholders with a share of their rising profits via rising dividend payouts.

And that hard work has paid off.

I have a six-figure portfolio chock-full of high quality companies like Johnson & Johnson (JNJ), PepsiCo, Inc. (PEP), Chevron Corporation (CVX), Aflac Incorporated (AFL) and Philip Morris International (PM) spitting out ~$4,500 in passive income via dividends over the next 12 months. I may not be financially independent yet, but I do know that I can count on about $375 in monthly income over the next year without having to go out and work for it. That’s a good chunk of my monthly expenses covered because I continue to believe in the power of frugality. The lower I can get my expenses the more money I have left over to invest with, and then on top of that lower expenses means I won’t need as much passive income to claim total financial freedom.

But as much as I’ve accomplished thus far, and as hard as I’ve worked over the last few years there is still a long, arduous road ahead of me. How do I reconcile the celebratory feelings of having done so much in such a short period of time with the fact that there is still so much yet to do?

I remember that anything worth having in life is worth working for.

Romantic and a quotable statement to be sure, but maybe this isn’t what you’re looking for. I can understand firsthand that it’s tough sometimes to get up day after day and want something so bad – something that is still so far away. While I’ve accomplished so much, and while I’m still young at only 31 years old I also realize that I still have thousands of days full of hard work ahead of me. I’m years away from being even close to financially independent. Disappointing? No. I knew this was a journey that would be over a decade long. But I’ll admit that it’s a bit terrifying at times.

What do I do when looking at what I’ve already done isn’t enough of a remedy to calm my fears over how far I still have to travel to reach financial independence? What do I do when the road ahead of me is still incredibly long and intimidating and my feet are weary from all the miles I’ve already traveled?

I take a break. I stop focusing on the past and the future. What’s left? The present.

When the road ahead of you seems long, maybe it’s time to stop looking at the map. It’s time to live in the present. Be here in the now. The habits successful people build are ingrained to the point where they don’t have to be micromanaged. Great decisions will be made. Money will be saved. Great investments will come to pass.

What is it you enjoy? What hobbies bring you happiness? How much time are you spending with those you love? 

I’ll give you a personal example:

I love writing. It brings me personal joy and a sense of accomplishment. I get great satisfaction out of inspiring people. In addition, putting my thoughts down on paper allows me to keep perspective and stay on track. So it should be no surprise that I spend so much time on Dividend Mantra trying to inspire others out there to reach for their dreams, while at the same time holding myself accountable for my own. If I could do nothing but write all day every day I’d be a pretty happy camper. So when the road seems particularly daunting on any given occasion or if I’m having a really rough day at work I try to focus on writing. Sometimes inspiring others ends up inspiring myself.

When the road ahead of me seems grueling I focus instead on living for today. Because, in the end, that long road is made up of a bunch of todays anyway. A decade of hard work is lived out one day at a time. And it’s today I’m really fighting for in the end anyhow. I realized a long time ago that life is short and time is a premium commodity. Why treat the days I have now with any less interest or importance than those I’ll have once I’m financially independent?

If you get down because the road to financial independence seems impossibly long take a break. Be present. Live for today. Because today is all we have, and today is exactly why you’re seeking financial independence. Don’t take any minute in the now for granted. They say tomorrow isn’t promised. And you know what else isn’t promised? Happiness. But if you make it a priority to live the best today you can you’ll have a much better shot at it than most other people do. And you’ll also have a collection of great days that will eventually propel you towards financial independence without needing to ask for directions.

How about you? What do you do when the road to financial independence seems daunting?

Thanks for reading.

Photo Credit: Stuart Miles/FreeDigitalPhotos.net

Special note: This article was specifically written for a reader who recently emailed me and asked me what I do when I feel less motivated, or when the goal of financial independence still seems too far away.

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35 Comments

  1. Great post

    “What is it you enjoy? What hobbies bring you happiness? How much time are you spending with those you love?”

    I have a few hobbies that I really enjoy doing. I play softball and baseball weekly. About 3 games a week. I also workout at the gym 4-5 times a week, and I do photography. Now I am spending a lot of nights reading about dividends. Which you and other bloggers showed me the light.

    As for family, I spend every day with friends and the family.

    “How about you? What do you do when the road to financial independence seems daunting?”
    Since I just started on my own road to financial independence, I don’t find it daunting yet since its all new to me and exiting.

  2. FFdividend,

    Great to hear that you have a diverse set of interests there that you keep you busy. I also enjoy hitting the gym a few times a week.

    Glad to hear that everything is exciting for you. I share that excitement! Although sometimes I get a bit overwhelmed by the road still in front of me, I’m still amazed every single day by the process and the success I’ve achieved thus far.

    Keep up the great work!

    Best regards.

  3. Bryan,

    Glad to hear you’re solidly on your way to financial independence and the flexibility it’ll bring you guys. I agree that time and flexibility are what it’s all about. There’s so many people out there that think it’s all about avoiding work and being lazy, when in fact it’s the complete opposite: the amount of work that goes into achieving financial independence is way beyond what most people could ever imagine.

    Keep it up!

    Cheers!

  4. You have worked hard for every penny of that dividend income.When you retire and people say how lucky you are remember that you work very hard to get there.You can say”dont sit and wine go get yours where I got mine”Does your girl friend invest as like you do?

  5. Inspire you do, Jason. I enjoy researching investments, spending time with family/friends (like the kayaking trip my wife and I took this morning to a barrier island), writing, and volunteering. In order to do those things I require good health and time/flexibility. Time and flexibility are what financial independence are all about to me. The debt is gone and the portfolio is growing. We are on our way.

    -Bryan

  6. Anonymous,

    Thanks!

    I agree with you 100%. There is nothing easy about living well below your means and building up a dividend income stream large enough to fund an entire lifestyle. But as the quote in the article states: anything in life worth having is worth working for.

    Best wishes!

  7. Mantra,

    I love to travel. I don’t get to travel (for pleasure) much at this stage in my life because of my young family. To be able to travel freely and extensively abroad again is the primary driver of my desire to retire early. My planned retirement date is about 17 years off, just in time for my youngest to head off to college. At that point I will be financially independent, and able to travel. Until then, I’ll focus on raising my kids and enjoying the ride, and hopefully taking some good vacations with them.

    -RBD

  8. Man, oh, man, is this a good post! I don’t even know where to begin, there are so many awesome parts. Most of it reads like poetry to me. This is probably my favorite bit: “If you get down because the road to financial independence seems impossibly long take a break. Be present. Live for today. ” Sometimes we just have to step back and look away from the horizon and just live in the moment. The pursuit of FI can definitely look daunting, but waking up in the morning day after day to pursue someone else’s agenda is even more daunting.

    Right now I’m in the middle of selling my house. It has been a grueling process but I know that I will be better off in the long run. It’s part of the overall plan to put ourselves in a better and more flexible position. There have been numerous things that have attempted to deter me, but I have tried to keep my eyes on the price. (I’ll let you know more about this whole thing in the ERE forums).

    Posts with numbers are great, but philosophical ones like these are treat!

  9. Great post DM~ At present pace I have less than 5 years until retirement! My idea of retirement isn’t quite normal though. I plan on doing construction for myself (building rental houses with cash) and traveling. I’ve built 2 already but its hard to cashflow with construction loans/mortgages. It sure beats buying places because I will know exactly how to fix any issues when they arise, and they don’t come up very often at all compared to purchased homes =)

  10. Great post DM, you’re an aspiring and inspiring chap. I need to take a step back all the time, it helps because come of the changes in life you make can be so surreal at times. You look at your expenses/income ratio and love and enjoy life as much as the next guy who is spending 110% of what he earns. I had this great chat with my wife the other day about the fact that we eat great food and do what we like and enjoy ourselves immensely all whilst savings over 70% of our incomes (i’m pushing for 75-80% for the next six months now that we have got most of our one off purchases out of the way). Guys like you and MMM really showed me that I wasn’t an oddball for enjoying life whilst not spending silly amounts of cash on it. Everyone calls me cheap (a compliment in my books) but I see, hear and read funny and interesting things all the time. Two recent things to deposit in the philosophical/motivational bank of financial independence are ‘you don’t eat that many tins of crushed tomatoes in a week do you’…remarked to my wife by the check out chic at the grocery store (they were on 50% off sale) and ‘I spend every single cent I earn….I purchase necessities with 30% and freedom with the other 70%’.

    Keep up the hard work DM and never forget just how far you have travelled…you’ll be on the slippery slope of unavoidable financial independence sooner than you think!!!

    KM

  11. Great and honest post as always!

    I would recommend that you read “The Happiness Hypothesis” by Jonathan Haidt to gain some more insight about how to maximize happiness in the present. I see a lot of myself in your quest for financial independence, but I shifted from super-frugal to a more balanced approach once I reached a portfolio a size similar to yours. I’m not saying don’t be frugal, I’m just saying that having a more relaxed attitude toward spending money on meaningful things. You have done the hard groundwork and achieved an impressive portfolio that will grow over time even without large net investments. I say keep investing, but don’t pass up a nice dinner with friends or something else you really enjoy just to invest that extra cash.

  12. Not so much daunting as much as… repetitive? Once you have a system that will eventually get you to FI it becomes repetitive and a bit boring. It’s not a bad thing, but definitely something that I think about once in a while. How many more years of doing the same #$%@ before we are FI and can really switch it up? I ask myself that question for sure. My usual answer to myself is that it’s a lot less years than if we were living like most everyone else, since that FI would come way too late, if ever.

  13. I think it’s important to set shorter term goals so we don’t get discouraged of the long road ahead. These goals can keep us focused on something reachable in a shorter amount of time. It’s important to stay motivated and not lose sight on the larger picture. I also take time out to travel, play basketball and now enjoy some of the nice weather in Texas.

  14. RBD,

    It sounds like you’ve got a great mix of the now (a young family) and the future (travel). I’m sometimes guilty of focusing too much on the latter and not enough on the former. Seems like you are happy now and have a lot keeping you busy, but at the same time you have something you’re greatly looking forward too.

    I wish you luck in one day indulging in your wanderlust again!

    Take care.

  15. Spoonman,

    Thanks for the kind words. Glad you liked the post. 🙂

    Wow, good luck with selling the house. I go back and forth myself on whether to buy a house, but I quite enjoy the flexibility that renting comes with. I can be fickle, and renting allows me to indulge in it.

    Looking forward to hearing how things go for you guys with the sale. I know you two two are interested in travel, and certainly getting rid of an albatross like a house allows you the flexibility needed for that.

    Best of luck.

    Cheers!

  16. Investing Early,

    Wow! That’s fantastic. Five years? You’re going to get there before me, that’s for sure. You’ll have to tell me how the promised land is. 🙂

    Sounds like you have a well-reasoned plan in place. That’s definitely not the road I would take, but the sweat equity will very likely give you much bigger returns than I’ll ever see as a typical equity investor.

    Best wishes!

  17. Investing Pursuits,

    No leverage for me. I’m actually proud of the fact that every dime of my portfolio and every ounce of my success is from hard work and my own money. Maybe it’s the slower road, but it’s the surer one as well.

    Best regards.

  18. KM,

    “‘I spend every single cent I earn….I purchase necessities with 30% and freedom with the other 70%’.”

    Great quote there. I really like that! We, as pursuers of FI, are indeed spending all of our money, but simply spending a great portion of it on freedom. That’s one of the best possible uses of cash I can think of!

    Keep up the great work.

    Best wishes!

  19. Karl Nilsson,

    Thanks for the book suggestion. I’ll have to take a look.

    I hear you on the spending. I’ve actually lightened up quite a bit lately. I’d say over the last year or so my spending has crept up. Some of it (most of it) has actually not been my choice, as health care costs are now a major factor for me. I’ve also voluntarily increased my spending on food, partly due to health (more protein, less sodium) and partly due to pleasure (eating better food these days).

    However, I look back fondly on the days of extreme frugality as those days provided the springboard that put me in the position I’m in today. That will be with me always, no matter how long I keep at the “extreme” side of things.

    Thanks for stopping by. I appreciate your thoughts!

    Take care.

  20. insourcelife,

    Yeah, I don’t think I’d disagree that the path to FI is repetitive. But isn’t that life in general? I don’t know if there is anything specifically repetitive about what the path to FI requires (living below your means, investing in appreciating and cash flow producing assets) over and above what a more normal, middle class life requires. I think, if anything, the great thing about FI is that it allows the repetition to end much quicker than living a more conventional life.

    Of course, the other great thing that the path to FI offers is flexibility. For instance, I know right now that I could take a sabbatical and travel the world for 6 months or so and get right back on the FI train. Some people refer to the cash mound you’ll eventually build on the way to FI as “F-you money” and that’s probably apt. You don’t have to reach FI to end the repetition. However, taking a break from the journey may simply lengthen the total amount of time until you’re free. But that might not be too bad if you have a ton of fun on the way!

    Best wishes.

  21. AAI,

    Great point there. I also focus on the short-term goals and that’s why I publicize them and track them on the blog.

    However, I think even those may not totally alleviate hopelessness if you’re still a decade or two away from financial independence. While I think it’s immensely important to have goals (long-term and short-term), ignoring them from time to time to just live life in the now might not be a bad idea.

    While we’re on the subject of goals, you’re killing it! 🙂

    Best regards!

  22. Ha, how can dividend investing ever be boring? 😉

    I have and update monthly charts of my dividend income, and graph them. The trend is up, up and up. As it gets closer to my target monthly income, I start salivating.. I also spend at least a few minutes every day thinking about my retirement.. It is a very peaceful few minutes.. Then I get back to the grind energized.

    I do agree that the daily grind is tough.. I mean waking up at 6, going to work at 7:30-8, staying till 5- 6 (or later) and then doing it for the next 5- 10 years is a lot.. But I agree with your conclusion that you have to try to live in the present and enjoy the moment.

    You know, we are some of the luckiest people who ever lived on the planet. You might think you are super frugal, but in reality you are living much better than kings did up until 200 years ago. You have access to modern medicine, your chances of starving are almost nill, you live in an air conditioned apartment, drive an air conditioned car and can travel anywhere you want. You also have all the information in the world at your fingertips with the power of the internet. You can also profit from the click of your mouse, by buying businesses that operate in almost all countries in the world and earnings dividends from their global profits.

    And you know, you have to try to enjoy the journey.. Have you thought about maybe finding a job you like better? I switched jobs in late 2012, and have been much happier..

  23. Awesome post, Jason, this is truly inspirational! I agree that anything worth having requires incredible determination, hard work, and persistence. The tips in this post (analyzing how far you have come so far and also enjoying the present) are so important and helpful, thank you for sharing. Anyone with a lofty goal (starting their own business, achieving financial freedom, getting far in one’s career, or any other goal) needs to be prepared for both triumphs and adversity. Lofty goals are often as much about persistence as skill. All of this stuff is easier said than done, I know from personal experience. We all face many challenges in our quest for success (however we define it). Keep going and never give up! I would add one tip to your post: Build an incredible support network. I personally find support reading your blog, you are the ultimate inspiration for anyone building a lifestyle around financial success and dividend income!
    Sincerely,
    Ian

  24. For a second there, I thought you were going to break into The Beatles “Long and Winding Road”…

    But seriously, the daily grind is very hard, even when you are pointed in the right direction. Delayed gratification is not easy, and that is exactly what saving money is.

  25. Sometimes having a clear goal makes the journey seem even harder and longer. But anyone can get excited and work hard for awhile. It’s the ones that can stick with it down the stretch that are successful. Giving yourself some (small) rewards for goals met along the way can help prevent the feeling of hopelessness about the length of the journey from becoming overwhelming.
    And please know your progress so far is inspiring many!

  26. DGI,

    Thanks for stopping by.

    I don’t think dividend investing can ever be boring! Rather, I can see how some people can be discouraged from time to time by the length of the road still ahead of them.

    In fact, I find investing quite exciting. If i could just write and manage investments I’d be very happy! Maybe I’m on to something there…

    Great perspective there on how we’re living better than the kings of days past. I never forget about that. Not only do I live a great life in a historical perspective, but I also live a great life even looking at the average lifestyle of a global citizen of 2013. There are billions of people out there starving and without enough money to afford basic luxuries like running water or electricity. That’s right now. Today. So not only do I live a wonderful life compared to Thomas Jefferson or Julius Ceasar, but I also live a wonderful life compared to billions of people out there living without basic necessities or dying of disease.

    Just being employed, living in 2013 America, male, healthy and educated puts me way ahead of most of the world.

    In regards to your last question that is something I think about. I’ve considered switching jobs, but moving to another location would mean much of the same now. Namely, my issue is the long hours. Another consideration is to move into a different industry. However, that would require furthering my education which could be expensive and time consuming. That would significantly slow my journey to FI, and may or may not yield increased happiness (depends on how much I like the new industry). I’ve also not ruled out taking a sabbatical at some point to recharge. Being able to take a break is a huge benefit to chasing FI, because you’ll naturally build up a bit cash pile which puts you in a pretty flexible position.

    Best wishes!

  27. Ian,

    Hey! I hoped you enjoyed the post. 🙂

    Great point there about the support network. I’ve mentioned this a couple times now (notably in the podcast) about how important it is to have supportive people in your life if you’re chasing after something like FI. It’s different and it’s hard, so having people who understand and love you unconditionally is really important. This is equally true for any other big goal or lifestyle, as you mentioned.

    Thanks for the support as always!

    Best wishes.

  28. S.B.,

    Haha! I love The Beatles. One of my absolute favorites. I only wish I could write something as great and powerful as that tune.

    I agree with you. Even when you’re pursuing something as grand as FI, and even though you know it’s eventually going to change your life the 9-5 grind is brutal (for me it’s a 7:15-6 grind). I take great solace in seeing the progress every single month.

    Stay in touch!

    Take care.

  29. Pretired Nick,

    Great idea there. Even though I was forced into the purchase, I’d say having a car again is probably a small reward for my success so far. And by that I mean I don’t feel guilty about it. The last time I had a car I felt guilty about having it, the costs involved and how I could be saving the difference. This time around I don’t feel bad about it.

    Rewarding yourself after hard work can definitely make it easier to keep going and stretching yourself further. Just as long as the reward doesn’t set you back at all.

    Cheers!

  30. “How about you? What do you do when the road to financial independence seems daunting?”

    I simply recalculate and keep it up.
    There’s nothing that worth more than determination.

  31. JF Baconnet,

    Great idea. Recalculating and seeing the progress you’d made thus far is incredibly encouraging and motivating. As I wrote about in the first part of the post, that’s what keeps me going most of the time. Hitting short-term goals and marching past ever larger milestones keeps me celebrating! I love crushing goals and marching faster and faster towards FI. 🙂

    Keep it up.

    Best wishes.

  32. You are doing great. The road to FI is long, but you should enjoy the journey too. Well, we all do the best we can. I was stuck in a stressful job for many years and it took a toll. Eventually I figured out how to move on (reduce expense and generate online income) and worked on that. It took a lot of time, but it helped keep me occupied and gave me something to work toward.

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