Work And Financial Independence Are Not Mutually Exclusive

runningtoworkOne of the common arguments I get that’s against the concept of living below your means and investing excess capital in such a way to build passive income and attain financial independence is the thought process that some people just don’t want to stop working. Ever.

“Why save and invest when I love my job? I don’t ever want to stop working, so passive income will do nothing for me.”

This is actually a valid issue to take up.

However, I don’t believe it’s completely rational.

Being Financially Independent Doesn’t Preclude You From Activity (Paid Or Otherwise)

You can look at a lot of highly successful people out there that continue to work long after they’re wealthy enough to stop.

Take Warren Buffett, for instance.

He’s one of my heroes, as evidenced by the fact that Claudia and I are are making a pilgrimage to Omaha this year to see him in person at this year’s Berkshire Hathaway Inc. (BRK.B) annual shareholders’ meeting. This is going to basically end up being our honeymoon, so that’s saying something.

Now, Buffett is worth more than $60 billion dollars. So he obviously doesn’t need a paycheck. But he continues to show up for work every morning. Why?

He does what he does because he enjoys it. He’d rather continue running the company he built from the ground up to his specifications than, say, go golfing for eight hours per day. That’s how he’s wired. And I don’t think anyone can blame him.

As I recently wrote, being financially independent doesn’t mean you sit around all day, staring at a wall. You still have to spend your time in some manner. The key to financial independence, however, is that you can spend your time however you want. You own all of your time, meaning every expenditure of every minute is completely up to you.

You may decide to continue working at the job that allowed you to buy your freedom. Or maybe you decide to take on a totally new career. You could volunteer all of your time to causes that mean something to you. Or you could take the opposite approach of Mr. Buffett and go golfing all day. It doesn’t really matter as long as it’s bringing value to your life and you’re happy with your choices as to how you spend your time.

Work And Financial Independence Are Not Mutually Exclusive

So you can see that once you become financially independent you can still continue to work. The difference, however, is that it’ll be on your terms.

It’s not like becoming financially independent means you hand in some kind of “work card” and you can never have a job ever again. In fact, it’s quite unlikely that anyone intelligent, diligent, enterprising, and persistent enough to attain financial freedom early in life will never earn another dime again via the exchanging of their time for money. In fact, it’s actually more likely that someone that aggressive and hard working will end up continuing to earn money by pursuing their passions once their time is freed up to do so.

Personally, I’m planning on continuing to write in some capacity once my dividend income completely covers my expenses. I can’t quite say as to what frequency or in what medium, but I think there will always be that desire there. I certainly won’t be barred from firing up the laptop and putting an article or book together here and there, even if I don’t have to. But I’ll be doing so because I want to.

Just because the cage door opens doesn’t mean you have to stop running on the rat wheel. If you enjoy the pace, you can stay on for as long as you want/can.

Not Being Financially Independent Means You Still Have To Work In Some Capacity

Here’s where the value of financial independence comes into play.

While financial independence and work are not mutually exclusive as they can co-exist in harmony, you cannot stop working if you’re not financially independent.

See how that works? It doesn’t go both ways.

In my view, that’s one of the biggest reasons to become financially independent. It’s all about options and flexibility. If you want to work, work. If you want to play, play. If you want to relax, relax. If you want to volunteer, volunteer.

However, if you’re not financially independent, those options all disappear. You can’t just take a year off to volunteer for a local cause or travel the world if you can’t pay for housing and food without a paycheck.

It’s simply untethering yourself. Why would you want to be tethered to anything if you don’t have to? Why would you choose to not be free over freedom?

Conclusion

Financial independence is freedom. To purposely avoid freedom is, in my view, not a smart move if only because freedom gives you opportunities, choices, and flexibility that being enslaved to your job doesn’t offer. Not having freedom means your time is not your own and you can’t completely control your own destiny. You go where someone tells you to go, do what they tell you to do, and be who they want you to be.

Now, you may love your job. If so, that’s a fantastic position to be in. I now know what that’s like after quitting my job in the auto industry to pursue writing full-time.

However, it’s only because I was already covering a substantial portion of my expenses via dividend income that I felt comfortable enough to make that move. Only having to go out in the world and make a thousand or so dollars per month meant the hurdle wasn’t that high for me. And that’s what passive income does. It lowers the hurdle for you. It goes from a major jump to a leisurely step. Eventually, it disappears completely. That lowers life’s difficulty level significantly.

Not having that kind of safety net means I probably would have never left my old job in the first place. Furthermore, you may not always love your job. Pulling down 40 or 50 hours per week at the office at 35 years old and doing the same thing at 55 years old are, I’m quite confident, far different. You get worn out over time. And we generally change over time as well. Moreover, you may end up with a boss you don’t like or a new role in the company that you don’t enjoy. Or maybe you end up being let go due to downsizing or something similar. Someone who’s not free might be devastated or forced into a miserable situation. Being free, on the other hand, means you simply have to look at the other 1,000 or so options on your plate.

Being financially independent simply gives you options. It doesn’t mean you’ll never work again. But if you decide to continue working for pay, it’ll be on your terms.

Full Disclosure: None.

What do you think? Plan on continuing to work even after you become financially independent? Why or why not? 

Thanks for reading.

Photo Credit: iosphere/FreeDigitalPhotos.net

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116 Comments

  1. Great article Jason and I couldn’t agree more with your conclusions! FI is all about allowing you the opportunity to spend your time pursuing what you want in life so you can live the most fulfilling life possible. I don’t thin I’ll ever be able to stop working. But I can guarantee you that when I have a large enough dividend income stream, my work will be on my terms and I will be doing something that I wake up every morning and enjoy doing. That is what it is all about, right?.

    Thanks for sharing!

    Bert

  2. I don’t think I’ll completely stop working after reaching FI, either. To be honest, all I probably need is just a really long vacation, not a complete break from work. Then again, with my recent increase in work hours, I could sure use a nice break right now. I don’t know how you managed to work full time and constantly update your blog – I’ve had a post in progress for the past two weeks, but between juggling work, exercise, and getting enough sleep, I’ve really been struggling with trying to finish it!

  3. Excellent points DM! You really hit the nail on the head. There’s a line in Tim Ferriss’s book The 4-Hour Work Week that’s always stuck in my mind and it has been a guiding motto in my dividend investing quest: “Options—the ability to choose—is real power” When your job comprises 100% of your income, your ability to choose is severely limited. My dividend income isn’t big enough to afford the Big Options that financial independence provides, but it does empower me enough to afford a wide range of Little Options to choose from (paying down my mortgage, paying monthly utility bills, making more risky investments, building my savings, etc.). And having more options, and the ability to choose, is what this game is all about.

  4. Great article Mr. Mantra.
    I hope when you reach your goal, you will continue with your blog because I view you as a friend online. With your site, you are able to be as successful as you are because you are active and genuine with it. With 5 years under your belt, and another 8 when you reach 40… that’s 13 years of your life dedicated to this wonderful blog. Surely and hopefully by then, I hope the blog creates 2x or 3x or even 5x your current income because You are The Original Dividend Gangster. You deserve it pal. I hope you don’t quit then because I’m gonna be around forever now with my site as well. 🙂
    Cheers to us!
    Love Tyler.

  5. Hi Jason,

    Great article, again! Quite impressed how you approach FI from all these different angles, without flooding the market 😉

    The challenge I have is to explain it to (my significant) others. It makes so much sense, but it seems somehow hard to really explain. Next time I will use your brilliant line, if I may:

    “While financial independence and work are not mutually exclusive as they can co-exist in harmony, you cannot stop working if you’re not financially independent.” BAM!

    Looking forward to many more of your articles, happy to know you might even keep on going when >40 years of age. I am sure that reaching your FI age will again add a new angle and input to your articles.

  6. Hey Jason, thanks again for another great post. I love how you flipped the concept over to the opposite way of thinking. Now, combine that with a powerful storytelling manner and many more people can be convinced!

    Cheers

  7. Jason,

    You hit the nail on the head with the post, yet again!

    The argument “why would I want to stop working, I love my job” is by far the most common reply when I tell people about my FI goals even though it doesn’t make much sense. It’s not because you like something now that you’ll enjoy it forever. So many things can change along the way.

    I’ve noticed that people who prefer living in the here and now often have that kind of mindset, whereas people who are better at long-term thinking have a better understanding of the benefits of financial freedom. If you think about it, that makes sense. When you have a “I’ll see what life brings when it brings it” mentality, financial independence doesn’t sound nearly as attractive as when you have a higher desire for future certainty and security.

    At the moment I absolutely like going into the office everyday – which I’m very grateful for, btw – but that could change quite quickly in the future. If at that point I’m FI, I’ll at least have to option to walk away if I want to. Your car-dealership to full-time freelancer story clearly shows that financial freedom makes that possible.

    Best wishes,
    NMW

  8. Hi Jason,

    I think, you are on the right way. In my situation I have a job which I really enjoy. I like working for my company and they pay me quite good. On the other side it is useful to get FI, because I dont know if this will be in 10 years the same. So I am working like you for the same goal. I´m located in Germany and there are not many people investing in shares and have a goal to get FI. A lot of people trust on the social German state and the situation is getting always more worse the next years like the last years. I dont want to be addicted from a state and that they decide how much and when I will get my funds. On the other side my plan is that I will work less, when I achieved this goal. I live near the Alps and it would be fine to go more mountain climbing if I like to do that. At the moment I normally have to go to work when the weather is fine and it would be fun to go into the mountains.

    When you look at yourself you did a change after four years saving money and getting more and more dividends. Now you are doing things which you like much more. But I assume if you didn´t start investing and thinking/writing about everything around it, you would be still in the auto industry working the same. And even you don´t like this job you would do it for the money to pay your invoices. Thats the normal way an average person is doing it in his/her life. A lot of people don´t see the options. Your blog is a possible option and I hope, that many people will read this and start thinking about changing their situation. Thats why I like your blog.

    Best regards
    Oliver

  9. My father became FI at 46, he is now 77 and still works about 4 days a week (weather dependent as he is a builder).

    I recall asking him 31 years ago why he continued working when he could stop. “There is a massive difference between having to go to work and wanting to go to work and I want to go to work” was his reply. That reply had the greatest affect on my life and outlook to life that I have ever had. From that date on I saved all I could from my paper rounds ( I was just starting senior school) and in subsequent years hoarded all I could.

    I am now in the same position as my father and continue working 9-5, 5 days a week. I have a simple life and have not surrounded myself with materialistic things that I do not need. My life is full and happy, if or when I start to not enjoy work I will stop, until then I will continue. Knowing that I could call it quits tomorrow is a great feeling.

    Regards

    Alison

  10. Exactly how I am looking at this as well!

    For many people arround me becoming financial independent or ‘financial free’ is just focusing at not working anymore. The only thing that I aspire is not Having to work anymore and then doing the work I love! It is very common that when you Have to do things they become less fun.

    Best Regards,
    Rich Neighbour

  11. So well said! Mr. Frugalwoods and I don’t plan to stop “working” after we hit FI even though we’ll quit our jobs, we’ll just be–as you said–working on our own terms. We don’t like being trapped in an office from 9-5 everyday, we want to freedom to work on projects on our homestead that are meaningful to us. It’s all about being the master of your time and your pursuits.

    P.S. This is hilarious and pretty much what Frugal Hound does all day: “…being financially independent doesn’t mean you sit around all day, staring at a wall.” I’d add the addendum “unless you’re a dog” 🙂

  12. I’m a SAHM and the Mr. has plans to work, in one way or another, forever (opposites attract?) So, we’ve questioned why we’re bothering to live within our means sometimes. Paying off our mortgage, getting our monthly living costs low, and eventually having our investments generating more income will mean that he can choose to work wherever he’s most interested and not be worried about how much money he’s bringing home. Already, because we live on half his income, he could opt to take a much lower paying job, and that’s a little piece of freedom already and we think it’s worth it.

  13. I found a decent trick that helps when trying to explain FIRE to people – explain it on their level. Normally, people don’t give a s**t about FIRE or retiring early for the same reasons you said. They aren’t really interested in minimalism or frugality or anything. So I phrase it in terms they will understand. You’re earning $3K in dividend income a year? Great, you can take one extra vacation a year at no real “cost” to your current paycheck! $10k? Go international! $30K? You can buy a decent, brand new car every single year with no financial stress. Yeah, hardcore FI seekers will cringe at the materialism in this approach, but we often forget that we are a minority in the way we think. Phrase it in terms they will understand, and they will be much more receptive to the idea in general. And when they’re hooked, that’s when you explain the concept of early retirement. Heck, that’s how I got my best friend interested by showing him how much Chipotle he could buy with $X in dividend income!

  14. “Being financially independent simply gives you options. It doesn’t mean you’ll never work again. But if you decide to continue working for pay, it’ll be on your terms.” I’m probably ready to walk off my job in 2 years. I probably will not stop working, but reaching Financial Freedom, will relief you from feeling that you “HAVE” to depend on that job, from feeling you “HAVE” to keep this job or your family will go hungry. No more worried about being fired from the job. It’s freedom. It’s powerful.

  15. Like No More Waffles and Oliver said, you may not always love your job. And even if you do always love your job, it might not always be available to you: you might get laid off, your company might go under, technology could change it into a different kind of job, or you might get sick or otherwise become unable to continue to work. I once read that some huge percentage of people (over 20%?) end up retiring before they wanted to because they got sick or laid off and couldn’t get another job.

    I’m one of those people who never wants to work for money again (except as a short-term favor for someone). Like you, I’ll still be writing, but for free. And I’ll be learning things on the guitar, learning Spanish and ASL, getting in plenty of exercise, trying new recipes, joining my friends for more things (like lunch at their office!), and who knows what else! I agree that most people will keep adding money to their stock pile–my version is that I will keep adding frugality skills to my stock pile.

  16. @DividendDeveloper, I like your way of catering the message to the audience! The thing is that those things are exactly the opposite of what I like to achieve with my dividend income… Another difficulty, how do you convince people that €100 dividend a month is a pretty big deal, many will see amounts like this as not significant and still don’t understand it…

  17. I love reading your blog. It’s one of the reasons I finally bought some Apple stock last year and got $1.97 in dividends for two quarters. I’ll get even more this year, a little over $15 anticipated (if I buy no more). Yay! 🙂 Very honestly: I’m working towards FI, but I have no clue what I’ll want to do after I reach that point. I certainly would not stay in my job. In fact, I can say that I’d probably take a few months to literally sit around and do nothing but game all day until I get bored of that and feel truly driven to pursue something more. While the gaming part sounds like a waste of time to some people, it’s a “cool down” for me, and it actually takes me getting to a certain point of..boredom? laziness? wasting away? call it what you will – before I feel that I can truly embark upon my dreams and know that it *is* what I actually want, and this time, nothing can stop me (when I get to this point in my current lifestyle, it gets put on the back-burner for work after happy fun time ends, and then the steam gets lost and I actually dislike what I thought was a dream or a hobby. But maybe in a year or two when I have more happy fun time, it’s really fun…til work starts and I dislike the hobby again for taking up my precious free time [why should I work more than 9 hours a day, even if I like it via hobby?]. Odd cycle.). It’s just how I function, I’ve found over the years. At the FI point, I’d be FI so no one can tell me what to do; I’d get paid for gaming all day anyway! 😀

    Thank you for the motivation to keep going and to invest my extra money!

  18. DM,

    I feel like I just read the basis behind my recent decision to pursue a four-day day job work week versus more money. Not everyone gets that there’s a huge difference between waking up and doing what you have to do versus waking up to do what you want to do, and both could theoretically be the same.

    Preach on, brother 🙂

    Best,
    DWC

  19. Well said Jason, and ultimately you’re financially independent at this point given your ability to do what you want, when you want.

    For me, it is all about what you said, freedom. The freedom to do as I please, when I please. I will always be making money doing something, that is just in my nature. But being in a position to then leverage my financial situation to invest and expand my investment opportunities to areas I’m not currently able to reach is what I am most looking forward to once FI.

  20. Hi Jason

    Again thanks for such an interesting read. I was actually thinking about this that once I graduate and if I am fortunate enough, work in finance related job, why should I quit something I enjoy? I will be graduating in three years majoring in economics.

    I have been thinking about working for say 15-20 years to gather my dividend growth portfolio so I can be FI. After that, if I find stock trading still so interesting, I might look for a job into it where I can choose my hours or work from home. I wouldn’t mind working from home since you can look after your kids at the same time and still be quite productive. Portfolio manager would be very interesting, though so time-taking job.

    One thing I am very happy is that I found your blog and started my portfolio. As I am only 21 year old lad, I imagine my portfolio will grow a lot from it’s high single digit value. That leads to my another question.

    Have you researched the insurance companies at all? Currently AIG trades at very attractive prices, has nice looking balance sheet and is growing it’s dividend. When the interest rates rise then the profits of AIG will see a huge boost since it’s assets are pretty much invested in bonds. I believe that in this particular situation where the market is so expensive, one must find companies others neglects for some reasons (AIGs gambling with credit swaps in 07-08). There’s nothing wrong in the core business.

    Any opinions?

    Thanks again, hopefully you can manage those taxes you were talking about and get back in to the real men’s business 😀

  21. Well said, DM…

    …and I admire the fact you were willing to step away from the rat race before being fully FI.

    Too often on my blog I hear from readers longing to leave their soul killing jobs but sticking it out not just to reach the 25x their annual needs (that is, the amount of net worth needed to implement the “4% rule”), but more beyond just to be “safe.”

    The truth is, as you said so well, it is “…quite unlikely that anyone intelligent, diligent, enterprising, and persistent enough to attain financial freedom early in life will never earn another dime again.”

    You don’t need enough to be fully FI to leave an undesirable position. You just need enough to cover the gap between your annual expenses and what you can make doing what you love.

  22. “Being financially independent simply gives you options. It doesn’t mean you’ll never work again. But if you decide to continue working for pay, it’ll be on your terms.”

    1000% correct, when Mrs. ESM talk about reaching FI and having the ability to not work, we usually end up talking about things we would do and what projects/jobs we would consider, it’s really having the Choice to do what you want, rather than a requirement to head to the cubicle.

  23. I think most people in the FI community differ from the average working person who has not really taken a hard look their lives and what they really want. Most people here have hobbies, side businesses, travel goals, and other things they plan to do with their time. Not many here would be sitting around staring at the wall.

  24. DM,

    I understand how easy it is to spend money these days- Starbucks, cable TV, fancy smartphones, cars, spas, restaurants- you name it. There are so many temptations out there. I, personally, very rarely go out to eat/drink , movie theater, or to the spa. Instead, I save my money to purchase more stocks- today, for example, I purchased 36 shares of JNJ. Occasionally, I do like to buy myself a more expensive good quality item like a designer bag, coat or shoes though. I don’t spend money on certain things that everybody seems to be spending like ,for example, fancy smartphones. Currently, I am saving 50% of my net income for stock purchases. Today, I took a day off from work- it feels so good to stay home! Yes, I have a good paying job, short commute and a rather good boss. But I have experienced different workplace environments in my life, and many of them were pretty bad. Things do change constantly at work- new boss, new coworker- and your workplace might change drastically for worse or better. Nobody is immune from firing, lay offs etc. these days. That’s why I save my money- as much as I can. It gives me peace of mind.

  25. You’re on a roll! What you’ve written in 2015 has been even better than last year. And that’s saying a lot because I really enjoyed reading your blog last year.

  26. Hi Jason,

    Great article. I completely agree. Any one driven enough to attain the independence is not likely to then ease back and play GTA over and over.

    I like to think of contributions into my savings as the potential to buy future time. That way in sit can pretend in sit can time travel.

    Keep up the awesome writing

    Mr Z

  27. Love this article. Financial independence means that I have more freedom. I can decide what I want to do. If I decide to keep working, great. I don’t have to worry about getting let go all of a sudden and not having enough income to support my family. Being financial independence also means more options, like you mentioned. You’re no longer tied to just the same job at the same place. You can travel around and work if you choose to.

  28. As a slightly older(47 year old) I can add these points from experience. You may love your job, but your job and your life will change over time. Employers sell the company, customers go out of business, or jobs become relocated. All three of these things has happened to me. As my life evolved, even my ideal work situation changed. I once loved to travel, but after having children it lost a lot of appeal.

    You may lose your dream job and not be able to find another. It can happen. Those are even a few more reasons to keep your lifestyle in check and seek FI – even if you love your job.

  29. I could easily picture myself working when I reach FI. It might not be a typical 9-5 job, but it would be something I am passionate about. Who knows, maybe I will find that my 9-5 job at the time is something I love. That’s the beauty of FI, you get the choice to do exactly what you want, when you want, and with whom you want. That is a very powerful freedom that, unfortunately, too few people get to experience.

    F2R30

  30. I would have no problem continuing to work after financial independence, in fact I think I would seek it out but with one big caveat: I would only want to work part time. Its not the work that bothers me about the 9 to 5, is the day in day out grind that wears me down. If I only had to work part time even if that meant have to work until I was 65, I think I would still be a happy man.

  31. I’d like to do more volunteer work, should we ever reach FI. Whilst that dream is far, far away, it would be something I’d love to do in the long term. Giving back is definitely a priority for us, when we have the time to do it.

  32. I get a kick when people like MMM and Jacob get flack for pursuing earned income after achieving FI. There’s some people out there that think that once you step away from the regular 9-5 job that you should just stick to the normal “retirement script”. It’s an unfortunate misconception, but hopefully as more people achieve FI and pursue their dreams these misguided critics will learn better.

  33. Haha. I can totally understand this concept. I often try and relate my investment earnings to things I need/want in everyday life. 4k in taxable dividends (so maybe ~3-3.4k aftertax) is ALMOST 6 months of food and going out to eat/drink expenses. I’m very excited to double that and eat/drink for free for the rest of my life!

    It’s also a crazy number of Chipotle bowls. mmmmm….

  34. This is the same principle I tout to those about to venture off to college. Student loan debt won’t kill you, but it will kill your options to do other things after graduating. Being beholden to a job is the same thing–having to work because you need the money won’t kill you, but it does certainly kill your options to do other things.

    Thanks for the article

  35. The “why plan, I like my work” argument always baffled me. When you are not FI and are taking no steps towards it, whether you like your work doesn’t really matter–choice is taken out of your hands and forfeited to the employer. That’s nice that someone loves their job, but the job can’t love them back! It’s just a job, and any good job is one new manager or an ugly balance sheet away from being a horrible job. Having begun my working career in 2008 I’ve seen too many people with 20, 30, 50 years in dropped overnight. If my job decides it doesn’t like me, I’d rather have the cushion to wait for another ‘good’ job–or (importantly for me; I have a short temper and an employer who likes to push on people until they bend or break) have the ability to walk out–instead of soldiering through to make ends meet.

    My older co-workers are going through this now. The place is cutting their pay and benefits significantly, again, but they expected to have these jobs forever, and have no leverage to negotiate because they feel they can’t afford to walk away from the table.

    Whereas with all the work you’ve put into building your buffer, even though you’re not fully FI, if you had some kind of black swan event that forced you back to full-time work you would be able to look proudly back on the months or years you’d managed to reclaim for yourself when you were young and able to make good use of it. Much better situation to be in.

  36. To me financial independence is all about choice. I may consult, work part-time, or decide to take a few years off to spend time with my kids once I reach it in about 7 years. I may retire early or drop down to 20 hours or work (or volunteering) a week. At that point I get to decide my own fate, and that is what keeps me focused on getting there!

  37. I hear you on this one buddy! Early FI progress is what has given me the confidence to go on a leave of absence right now. Further, it’s given me peace of mind where I know I don’t need to stress myself out about the future to no end.

    If things don’t work out as planned, I simply move on to Plan B, or C, or D… Regardless, any of those backup plans probably won’t be as grueling as the 9-5 which most people feel like they can’t escape from.

    You don’t need to be 100% FI to be able to taper back and find something more fun and enjoyable… just as you have demonstrated is possible. I also plan on making money in the future, as I feel like that is inevitable.

    I find it very hard to believe that anyone can work THAT HARD to get to early FI, or close to it, and then suddenly lose all of their motivation to do things… It’s probably an intense motivation that got you there in the first place 🙂

  38. Bert,

    Absolutely, bud. It’s all about opportunities. Financial independence creates opportunities that you’d never have if you’re beholden to your employer.

    It’s definitely all about waking up and doing what you love every single day. If that’s the spot you’re in, you’ve done pretty well. 🙂

    Thanks for dropping by!

    Best regards.

  39. Seraph,

    It’s different for everyone for sure. I’ve had almost a year off now and I certainly have no desire to ever go back to the dealership. But some just need an extra week off here and there to keep doing what they do. Obviously, enjoying what you do for the most part makes a big difference.

    I hear you there on the workload and getting burned out. I was in the same spot there at the end. It was either the job or the blog. I couldn’t keep doing both. I’m glad I chose the latter. 🙂

    But concentrate on what you enjoy the most and what has the most potential for you. If that’s your job, then the blog will have to take a backseat. Just the way it is.

    Best regards!

  40. DQ,

    Options. Tim nailed it there. That’s what it’s all about. Why anyone would want to limit their choices/options is beyond me. You may love your job now, but that will likely not always be the case. Working hard at 35 is surely different than working hard at 55.

    And achieving full financial independence isn’t required to take advantage of those options. I took advantage of the flexibility/freedom with just 1/3 of my long-term expenses covered. If you have some income coming in and some substantial capital working for you, it opens up a lot of options, even if it doesn’t open up all of them. Then again, you probably don’t need all of them. 10 options is better than 0. 🙂

    Thanks for sharing!

    Cheers.

  41. I must admit, I do love my job, so my drive to have $10m to retire on at age 55 isn’t so much about actually retiring, but is instead about having the OPTION to retire if I want to.

    Anyone that thinks they’re mutually exclusive is too lazy to work towards financial independence!

  42. Tyler,

    I’m OG? Sweet!!!!

    Maybe there’s a shirt I can buy that states “The Original Dividend Gangster”. 🙂

    We’re both chasing after our dreams. And I think, when you do that, the money will follow. If you’re really passionate about something and you give it your all, things have a way of working out.

    It’ll be great to see where we’re both at in 2022. Can’t wait to find out!

    Keep up the great work.

    Best wishes.

  43. William,

    That’s great that the content there is added to your arsenal of explanations. It’s sometimes difficult to explain some of these ideas and concepts to others, especially if you’re on the spot. But once you look at it that way, that you can’t have it both ways, it really creates this whole new mindset.

    I certainly hope to keep writing once I’m there. Tough to say right now, because blogging for that long is intimidating. But I’d love to show the journey from basically zero to FI and then even beyond. Should be fun. 🙂

    Thanks for dropping by!

    Best regards.

  44. M,

    Thank you. Glad you enjoyed it! 🙂

    Yep, can’t have it both ways. Once you realize that FI and work aren’t mutually exclusive, but you can’t stop working if you’re not FI, you see the value there. Being financially free creates options and flexibility. Not being FI means you lack options and flexibility. It’s very easy to see how one situation is better than the other when you break it down like that.

    Take care!

  45. NMW,

    Right. You’re absolutely correct there. Many people live in the here and now, and that perspective is just as dangerous when it comes to financial independence and the pursuit/lack of pursuit of it as it is with investing. I guess that’s why there’s a subset of us that seem to excel at both investing and the journey to financial independence. Both take a very long-term perspective.

    And it’s great that you love your job. I truly admire people who do…I always have. However, it’s great that you also recognize that there’s at least a possibility that that won’t always be true. There was even a time back when I first started that I kind of found the auto business exciting. The hours were brutal, but I was 25 years old and I could easily keep up. After just eight years, I was beat up. So you just never know what the future holds.

    Thanks for sharing. Glad we’re on the same page. 🙂

    Cheers!

  46. Oliver,

    Thanks for sharing that!

    You’re doing the right thing. While you really enjoy your job right now, that may not always be the case. Meanwhile, having passive income and a major capital base will only do good by giving you options and flexibility. It can’t do any harm. I never met anyone who said “I wish I didn’t have $700,000!”

    You may want to ski more. You may want to travel. You may want to do something you can’t even foresee right now. Being financially independent gives you those options. Without passive income of some sort, you’re beholden to your employer, meaning you have no options.

    Appreciate the support. I’m doing my best to show the light and show people that they have more options than they think. It takes hard work and persistence, but the rewards are absolutely worth it. I’m trying to prove that out. 🙂

    Stay in touch!

    Best regards.

  47. Alison,

    Great story there. I know what that feels like. The weight kind of came off my shoulders a bit there toward the last year or so at the dealership as I started to see the light at the end of the tunnel. Even though I hated the work and it was stressful, I also felt like the weight was becoming lighter. That’s great stuff. 🙂

    And you’re in a great spot. Work if you want to. If you don’t want to, don’t. You have those choices, which a lot of people lack. Going to work because you want to, not because you have to, is a profound difference. I think it’s a great way to learn a lot about yourself. If you still go into the office and keep doing what you’re doing even if you don’t have to, then you must truly enjoy what you’re doing. Likewise, it’s obvious I didn’t enjoy what I did, which is why I took a way out an soon as I could.

    Thanks for stopping by!!

    Best wishes.

  48. Jason,
    I was watching boxing on tv about a month ago and Warren Buffett was there live as one of the boxer was from Omaha. As the camera man focused on Mr Buffett’s face while cheering for the home favorite the commentator said “so there is the great Warren Buffett on a nose bleed seat, truly a man of the people”. I think financial freedom gives us more choice. Like Mr Buffett, he can afford a thousand ringside seats with an entourage but is that what truly makes him happy? Same goes with life, financial freedom truly gives us more freedom to choose where our heart is the happiest.
    Take care,
    FFF

  49. Rich Neighbour,

    Right. Financial independence isn’t just about not working. It’s about doing what you want. If that involves some type of work, that’s great. But if it does, it’s at your choosing.

    You still have to spend your time somehow. Financial independence doesn’t mean not doing anything ever again. If it did, I don’t know why anyone would aspire to reach it. FI simply means you can work on things that matter to you and bring happiness/passion to your life. If that happens to be an activity that pays money, all the better. 🙂

    Cheers!

  50. Mrs. FW,

    “It’s all about being the master of your time and your pursuits.”

    Couldn’t have said it better myself. 🙂

    As far as the Frugal Hound’s activities, dogs are pretty smart. We don’t really know what they’re doing while we’re gone at work all day. Maybe FH break dances in the living room!

    Cheers.

  51. Emily,

    Definitely. I think my own experience shows that a little freedom goes a long way. You don’t need 100% of your expenses covered by passive income before you can take advantage of some of that freedom. There’s a spectrum there where you go from no options to potentially unlimited options. Just getting a few options on your side makes a huge difference in your quality of life.

    I hope you guys continue to enjoy the journey and your husband takes advantage of those options. 🙂

    Best regards.

  52. Vivianne,

    Definitely. Not having to worry about keeping a roof over your head or food in your belly, no matter what happens, is a huge relief and weight off your shoulders. It means you’re not beholden to anyone anymore, which creates a huge increase in your quality of life. I only say that because I’ve experienced some of it myself.

    Good luck as you traverse that path for a couple more years. Your freedom will be well-earned. 🙂

    Take care!

  53. DD,

    That’s a unique approach. I’ve explained it somewhat similarly and cavalierly when other parties just don’t get what I’m talking about. But I’ve also never been particularly interested in converting others or talking anyone into this. I don’t really think FI is for everyone. And those that don’t want to change, never will. It has to come from within. That said, I love being in a position to motivate others who are already interested in that change.

    But it’s great that you were able to get your best friend interested. Keep rocking!! 🙂

    Cheers.

  54. Dividend Mantra,

    Every job I had I have heard people complain about there job. I also know people who say the love their job, but complain when they have to go to work. I have been around people who complain they have no money but they full tier cable or satellite and 2 vehicles that they make payments on.

    Having passive income coming in helps reduce the stress as the money shows up in the account with little effort. It definitely makes it easier to sleep at night. As my annual dividend income grows it easier to sleep at night then when I have to rely solely on my job for income.

  55. Good post. I am one of those people that will most likely continue working after I reach financial independence. Currently, my job is just a means to an end. I get paid well, the work is easy and the commute is tops 10 min each way. Once financial independence is within reach, I have plans of either working part time or in a completely different field altogether. I have this idea to perhaps go back to school and become a CPA or financial planner because I love dealing with money and running numbers with different scenarios. Both of those professions deal with both of those things.

    Either way, it will be a huge relief to know that I do not have to do anything and still live life the way I want to. Work or not work, travel or not travel, coach my kids sports or be a teacher or whatever, it will be amazing.

    FINANCIAL INDEPENDENCE CANNOT COME SOON ENOUGH!

  56. Debbie M,

    Absolutely. That was one of the main points I was trying to make in the article. You may be laid off or suffer some kind of health issue that forces your hand. Life is full of unknowns. FI financially and mentally prepares you for many of them.

    I get where you’re coming from. I also never plan on working for many again in the traditional sense. If I end up at another dealership or office somewhere, I failed. All of those options sound great, and they’re all open to you because of the great choices you’re making now. I once heard that great Dave Ramsey quote about living like nobody else now so you can live like nobody else later, and you’ll be living that out. 🙂

    Best regards.

  57. Jamie V,

    Thank you! I’m so glad you’ve found that kind of inspiration here. That’s exactly why I write and share. 🙂

    Hey, nothing wrong with gaming or anything else. Don’t let anyone else tell you what you should be doing with your time. In fact, it’s exactly because I don’t ever want to be told what to do that I’m so aggressively after financial independence. If you want to game out for a year or ten, do it. It’s all about finding happiness and joy out of every single day. Those that hate you for gaming or try to bring you down only do so out of their own unhappiness and insecurity. They want to bring you down to their level. And if you get tired of gaming after a year, no big deal. You can do whatever. It’s all up to you. Stick with it!

    Take care.

  58. DWC,

    Good stuff there. They could indeed be theoretically the same. And there’s nothing wrong with that. In fact, if that’s the situation you’re in, you’re incredibly lucky. However, most of us probably aren’t so lucky, meaning FI takes on even more significance.

    I hope that four-day plan works out for you. Keep us updated!

    Best regards.

  59. W2R,

    Sounds like a great plan there to expand your horizons a bit and leverage your situation into new opportunities. Doing as you please, when you please is what I think we’re all interested in. How anyone could find a downside in that is beyond me, but to each their own. I just think that some people have this thought process that just because they love what they do for a living right now, there’s no value in the pursuit of financial independence. And I just view that as the wrong way to look at it.

    Keep on marching forward! 🙂

    Best wishes.

  60. Sam,

    I’m glad to hear that. You’re in an incredible position over there at 21 years old. I can only wish I would have started so early. I’m confident I’d be financially independent by now.

    But working from home is fantastic. I can’t really talk it up enough. It’s not for everyone, but it’s incredibly enjoyable for me. The great news is that you could try it out and if it doesn’t work, so be it. Once you’re FI, you can try things on to see if they fit. That’s a luxury that covering your expenses with passive income affords you.

    As far as AIG goes, it doesn’t have the dividend growth history I look for. I generally like AFL, CB, TRV, and HCC in the insurance space. I’m hoping to expand my exposure there at some point here.

    Thanks for dropping by!

    Best regards.

  61. Jim,

    Definitely. I honestly can’t relate to those that want to stretch for a huge margin of safety, even while they pull down the hours at a job they hate. That makes no sense to me, which is partially why I wrote this article in the first place. If I can pull the trigger with a fraction of what I need, then I don’t see why others can’t as well.

    There’s a spectrum there, which I’m going to write about pretty soon here. On one end, you have zero freedom. On the other end, you have complete freedom. But increasing passive income comes with increasing options and freedom. It’s not all or nothing.

    Appreciate you stopping by! I’d say I hope all is well, but I already know it is. 🙂

    Best regards.

  62. Steven,

    That’s great that you guys have already had that conversation. I think it’s incredibly important to communicate with each other as much as oneself. You should have some kind of action plan, or at least a few ideas in your head, well before you get there. Just working hard and saving/investing while not having any idea of what you might like to do will put you in a bad spot. You guys will have an incredible number of choices in front of you, meaning you can take on the projects you really want to. If you don’t like working on something or with someone, you don’t have to. That’s the kind of freedom that most people lack.

    Keep at it!

    Cheers.

  63. Ada,

    Well, I think your comment is true for those of us who are already a few years into this journey. But that wasn’t me once upon a time. And there are quite a few people out there who are just starting out and completely lost. It takes time to reclaim your identity when you’ve just been showing up to a job as you’re told to do.

    Take care!

  64. Jollie,

    Peace of mind is priceless. And that’s a major benefit to this journey.

    As far as splurging every once in a while, there’s nothing wrong with that if you’re routinely saving half of your net income. We all have to find our personal balance. If you’re doing what you need to do to put yourself in the position that you eventually want to be in, then holding back on every single discretionary purchase isn’t really necessary.

    Keep up the great work there. Freedom is coming your way one stock and one dividend at a time. 🙂

    Best wishes.

  65. SR,

    Thank you! I really appreciate that. 🙂

    I’m doing my best to put out great content. But I’m also trying not to rehash ideas over and over again, which becomes more difficult as time passes and I cover more topics. Luckily, the new ideas haven’t stopped coming.

    Hopefully, you continue to enjoy what I’m putting out there.

    Cheers!

  66. Mr Zombie,

    Definitely. Time is money, and all the same money buys time. I’ve written about that a few times in the past, but financial independence is basically buying years of your life back. It allows you to live life completely on your terms, whatever that may be. Once you own your own time, you can spend it as you wish. And that’s a situation that very few people find themselves in.

    Take care!

  67. Tawcan,

    Absolutely. FI buys you options. And why would you want to limit your options in life? I think people on the outside looking in have this idea where the option to continue working disappears for some reason once you’re financially independent. And that’s obviously not the case.

    Keep up the great work over there!

    Best regards.

  68. envisionhappy,

    I’m glad you added that. Great points across the board.

    I haven’t experienced all that you have, but I also realized early on that there was no logical reason that those things might not happen to me. Who’s to say what I might enjoy 10 or 20 years from now? We change and evolve over time, which is healthy. Thus, you have to be able to roll with the punches. Having options puts you in control, so that you’re able to deal with those punches as they come.

    Thanks for dropping by!

    Best wishes.

  69. Nick,

    The hours can be a killer. I know for a fact that I wouldn’t have hated my old job in the auto industry so much if I would have been able to do it for, say, 15 or 20 hours per week. Unfortunately, most high-paying jobs don’t offer part-time work. Being financially independent, however, means you’re not in it for the money anymore. You’re in it for the pure enjoyment. And that changes the entire dynamic. 🙂

    I hope that once you’re FI, you’re able to find a perfect part-time job you find enjoyable, rewarding, and challenging.

    Best regards.

  70. Nicola,

    That’s great stuff there. Volunteer work is admirable. And being able to give back will be possible once you no longer have to constantly worry about earning an income.

    You’re putting yourself in a great position over there. 🙂

    Cheers!

  71. F2R30,

    Absolutely. You never know what the future holds. You may end up in a job that you absolutely love and would do for free. Or you may end up hatting your job, in which case the passive income allows you to escape that situation and find one you enjoy much more, regardless of pay. That kind of freedom and flexibility is absolutely priceless. 🙂

    Thanks for dropping by!

    Take care.

  72. DM,

    Just a quick question, why stocks? Could you not achieve financial independence with 2 or 3 rental properties paid in full with no mortgage?

    I own both but I sleep well/better knowing my rental homes give me about 30k a year in rent. I have mortgages on them.
    It’s like a big dividend check every month and rents go up every year.

    I still love stocks as well don’t get me wrong.

    Daniel

  73. Spoonman,

    Yeah, I never understood that. It’s almost as if once you no longer have to work for pay, you can never have a job again. The logic is just ridiculous. I used to work with this guy in his 60s who was wealthy enough to get by and then some, but enjoyed getting out of the house and talking to people. So he took on a job driving people to and from the dealership. He didn’t need the money, but liked the work. Who’s to say he can’t take that job? Never made any sense to me. You have freedom over your life, and that certainly extends to how you go about spending your time.

    But I never let those critics bother me. I think Jacob had a hard time with it, which is unfortunate. Can’t blame him.

    Best wishes.

  74. Eric,

    Definitely!

    What doesn’t kill you makes you stronger, but it also might really bum you out in the meanwhile.

    It really comes down to options. I don’t see how anyone could think that having no options trumps having options. And that’s really it. If you don’t want any options in life, then certainly being beholden to a job and employer is a great way to approach it. But I think 99.9% of people want more options and freedom, and building passive income gives you those options.

    Thanks for sharing!

    Best regards.

  75. Jana,

    Great point! You may love your job, but your job can’t love you back. That relationship will always be one-sided.

    I’m obliged to feel bad for those people that don’t plan and lack options when the hammer comes down on them. Then again, I can’t really feel sorry for people that make poor choices. I never once felt sorry for myself when I was heavily in debt and miserable at my job in my late 20s. I had nobody to blame but myself, and it was that realization that I was truly in control (for better or worse) that changed my life. If I had the power to ruin my life, then I also had the power to make it great.

    It’s unfortunate that some of your co-workers are in a tough spot. But sometimes it’s those tough spots that turn us into what we’re supposed to be. Adversity and challenges are a bit unique in that their redeeming qualities can only be seen in hindsight.

    Thanks for sharing. I’m glad you’re buying yourself options!! 🙂

    Best regards.

  76. Vawt,

    Couldn’t agree more. It’s all about choices. What you do is completely up to you when you no longer need that paycheck. Once you can pay for your lifestyle, everything you do is really up to you. That kind of freedom is worth the entry fee and then some. 🙂

    Cheers!

  77. FI Fighter,

    Absolutely, bud. You don’t need to have an expense coverage ratio of 100% or 200% to be free. Even just covering 30% or 40% of your expenses with passive income opens up a whole world of options for you. And I think you’re probably further along then you think you are. 🙂

    Plan B, C, and D are open to you because of the past moves you made. Hard work goes a long way. And the freedom you’ve bought yourself will only grow over time. Meanwhile, you’ll be able to figure out exactly what you want out of life. This kind of sabbatical is completely off the table for most people. I’m glad you’re taking advantage of your options to see what else is out there.

    Thanks for dropping by. Excited to see where things go for you.

    Cheers!

  78. projectikonz,

    That’s great. I’m glad to hear that. I’m fortunate in that I also love my job these days. I’ve had it both ways, and hating your job is just such a negative impact on your quality of life.

    Wish you the best of luck with your goal. That would be phenomenal. 🙂

    Cheers!

  79. IP,

    Right. I’ve also been around people like that. I’d venture to guess most people operate like that. I find it funny when people talk about how much they might love their job, but outwardly complain about it all day long. Either they’re lying to themselves or they don’t know the difference. It’s not like I complain about what I do all day long. Not anymore.

    I’m glad you’re sleeping better at night. I noticed the same phenomenon the longer I stayed at it, and the feeling gets better every day. 🙂

    Cheers!

  80. ADD,

    That’s a great outlook. I agree that FI cannot come soon enough. 🙂

    You’ll have the option to go back to school and tackle a different career, if you wish. That’s the kind of option that generally isn’t available for most people, especially if they’re the main breadwinner of the household. But once your bills are covered, food is in your belly, and you have a roof over your head, you can take on new challenges and opportunities.

    Keep it up!!

    Best regards.

  81. FFF,

    Buffett is a great example. Another example is an interview he had a while ago where the interviewer asked him why he still lived in the same house in Omaha. His response was something along the lines of: “It keeps me warm in the winter and cool in the summer. I could own 10 houses and go into the business of taking care of houses or some sort, but that wouldn’t make me any happier.”

    He realized early on what makes him happy and he goes after exactly that with complete gusto and enthusiasm. Everything else is just noise.

    Thanks for sharing!

    Take care.

  82. Daniel,

    Yeah, I think someone who knows what they’re doing with real estate will probably achieve a higher ROI than I am. But it’s not an apples-to-apples comparison by any stretch of the imagination.

    To answer your question, I don’t have a desire to buy myself a job. I don’t like the relatively illiquid nature of real estate, the leverage, the hassle, the time, the effort, or the lack of diversification. I currently rent a condo from a couple out of Canada. If you think this condo has been completely hands-off for them, that couldn’t be further from the truth. I’ve known a lot of people with rental properties and I’ve never once saw a situation where it was completely hassle-free.

    I like the fact that Pepsi won’t call me if a production line has an issue. That’s just me. To each their own.

    Cheers!

  83. If I ever find a job I liked I would be more tempted to work right now even though I dont have too. I think doing work you enjoy can be part of your lifes purpose and sense of worth. I am jelly you are going to the berk annual meeting. Once in a lifetime thing! Its like Mecca for finance heads!

  84. A-G,

    I definitely agree that for some people their work will drive a lot of their life’s purpose. And it’s important to keep in mind that that work (paid or otherwise) doesn’t need to end simply because you don’t have to do it anymore. In fact, I would argue that being financially independent will tell you exactly how much you love that work. If you continue to go in even after you reach FI, then you must honestly enjoy it.

    I’m really looking forward to the Omaha trip. It’s a dream come true. I never thought I’d go, but why not? This year is as good as any other. I hope you’re able to make it one year as well! 🙂

    Best regards.

  85. Great article. I hope it makes alot of people to think about their future. Personally im more interested in travelling all over the world. Not possible at this moment because i HAVE to keep working as a taxi driver to pay my monthly bills . Im fairly young at 26 so i have time for the compounding to happen. But once im FI the BETTER me will step into the world.

    Keep those articles up and coming your doing great with inspiring and motivating us.

    William
    http://www.dutchdividendtree.com

  86. DDT,

    Travel is definitely something that a lot of people aspire for, but sadly find themselves in a situation where a week or two per year is all they can muster, and even then it’s really not a genuine travel experience because they’re probably at some all-inclusive resort or hotel. I don’t know how you can really immerse yourself in a local culture unless you spend some serious time there. And the annual two-week vacation isn’t going to cut it, in my opinion.

    The you you want to be is out there waiting for you. I’m confident you’ll meet him one day. 🙂

    Take care!

  87. DDT,

    Travel is definitely something that a lot of people aspire for, but sadly find themselves in a situation where a week or two per year is all they can muster, and even then it’s really not a genuine travel experience because they’re probably at some all-inclusive resort or hotel. I don’t know how you can really immerse yourself in a local culture unless you spend some serious time there. And the annual two-week vacation isn’t going to cut it, in my opinion.

    The you you want to be is out there waiting for you. I’m confident you’ll meet him one day. 🙂

    Take care!

  88. I want to work for as long as possible. I want financial independence too. Just like you, I don’t think they have to be exclusive. Being financially independent means I can do what I love as a “work” and not worry on how much money it will return. It also means I could do less compromises in my schedule and simply take a couple days off when I feel I need them. It is possible, reachable and most of all: FUN!

  89. Hey DM,

    Just wanted to let you know that I’m crazy proud of you; meant to post that after your last post. I’ve followed for a long time and posted off and on under other names and etc.
    The last paragraph or two of your last article really summed it up, how far you’ve come. Not many people can do all that you’ve done even when the deck was stacked in their favor, and you did it after overcoming a difficult upbringing. As a medical student, I see so many people who refuse to take charge of the most basic aspects of their life (health and diet), and it means so much to me to see people like you who have just completely taken charge of life and fought for what they wanted/believed in.
    I hope you take a moment from time to time to appreciate yourself and all you’ve done.

    Second question: Come on, DM, when is the ebook coming? Isn’t that the obvious next step since you have a super popular blog?
    I’ll buy it. That’s a promise. As long as it’s not overpriced.

    Good luck!
    Chris

  90. Mike,

    Absolutely. I’m not quite sure I want to work as long as possible, or work much at all after I’m financially independent. But how much (or how little) you work is completely up to you once you’re FI. It’s on your terms. You’re basically customizing your life to your specifications and desires. How awesome is that?! 🙂

    Cheers.

  91. Chris,

    Thank you for the kind comment. I appreciate that. I’m lucky in that I have great readers like you that not only read my content, but also take the time to leave such nice comments. It more than compensates for the occasional idiot. 🙂

    I sometimes look back on how far I’ve come and almost can’t believe it. Almost like it didn’t happen. There was a good chunk of time there – probably a couple of years – that went so fast, it was a blur. Almost like a dream in another lifetime. But that hard work definitely pays off. Those who think the mountain that is financial independence is impossible to climb without a massive salary or some kind of advantage over others are just plan wrong…and I’m doing my best to prove that. If you want it, you’ll have it.

    It’s funny you mention taking the time to appreciate the progress. I comment to Claudia a few times a week how happy/blessed I am. It’s important to tae time to appreciate what you have and maintain that perspective. While I’m still hungry for complete freedom, I’m incredibly happy with where I’m at right now.

    Man, I’d love to write a book. I don’t think I’d do an ebook, but putting together an actual book (published on demand) is a dream of mine. It’s just tough finding the time. I’m writing more and more, and the quality/size of the articles are also growing. So there’s just limited opportunity there. We’ll see. It’s something that is on my mind.

    Thanks for dropping by. Hope your journey is proving even more fruitful than mine!

    Best wishes.

  92. Glad to see someone who agrees with me on this subject. I have loved living life on my terms since late 2009 and I even started and retired from a second career that I WANTED to do. When you don’t have to work you can find a lot of enjoyment pursuing opportunities of interest or doing something you are passionate about. Great article and you answered a question I have been asking myself lately. Am I the only one who believes this way? No sir, I am not and I might not be the misguided crazy freak I was beginning to believe I was.

  93. I’ve been saying this myself for awhile. I sometimes offhandedly tell people that I plan to retire between the ages of 35 and 40 (I’m trying to outdo you), but in actuality my plan is to be able to retire IF I CHOOSE, or continue to work IF I CHOOSE. It’s all about my choice in the matter, and to be able to decide if I want to venture out in the freezing cold during a blizzard to deal with customers.

    On a completely different topic, here’s an Onion article with Warren Buffett in it: http://www.theonion.com/articles/warren-buffett-cant-believe-he-has-to-live-next-to,37868/

  94. Tommy,

    Ha! You’re definitely not a crazy freak. 🙂

    I think it’s really a deeply personal decision. I don’t personally plan on a lot of “work” per se once my dividend income covers all of my expenses, even with writing. However, who’s to say I’ll feel the same in a decade? The great thing about financial independence is that you can quickly change your mind and do what makes sense at the time. Want to work hard for a year then take a whole year off? You can do that. Want to take on a totally new career without concerns over pay and/or failure? You can do that. Want to never work again? You can do that too. It’s complete flexibility. And that’s priceless.

    Best regards!

  95. AJ,

    Nice move there. I never intended NOV to be a large position for me, but it’s surely tempting me down here. I think the company is being punished disproportionately, which is really wonderful for those interested in buying its stock. I’m 50/50 on adding here.

    Enjoy those dividends. 🙂

    Best regards.

  96. Joey,

    Ha. Funny article there. 🙂

    You’re right in that it’s all about flexibility. Choosing when and how you work, if you work, is the kind of luxury that very few people in the entire world have. It’s worth the entire journey and then some, in my opinion. It’s the ultimate reward.

    I hope you get there by 35!

    Best wishes.

  97. Great talk Jason, I know the feeling. To have the choice says a lot more than not having the choice, and people talking that they don’t want to stop working without reaching freedom. If you reach FI and you still want to be in bondage than go ahead be my guest, but for me I will look for work on my terms, and volunteer opportunities. Good luck.

  98. RichUncle EL,

    I hear you. I couldn’t imagine working a full-time traditional type of job after I reach financial independence, but I say more power for those that do envision or want that. Any type of work I do where I’m actively trading my time for money will likely be on a part-time type of basis and it will definitely be on my terms. Having that choice is just priceless. 🙂

    Thanks for dropping by!

    Cheers.

  99. Yea I hate it when people say they’ll never retire and will work until they die because its very unrealistic…people have accidents, get laid off/fired, there is ageism in the corporate world, nasty corporate politics in some companies, or get burned out from the work in their field. Not to mention a lot of corporate jobs just aren’t very exciting.

    As a woman I have no desire to “lean in” and climb the corporate ladder, the corporate ladder just doesn’t seem to be very exciting. I’m not “giving up” just because I don’t want to climb the corporate ladder, my dreams in life are elsewhere. I’d like to live a more artistic life, spend more time with my loved ones, travel, and have time for my hobbies but right now these interests get scrunched into weekends and 2 week vacations which sucks.

    One day the only boss I want to have is the God and the IRS. LOL. 😉

  100. Hey Jason,
    I actually plan on reaching financial independence next year 🙂 I will sell everything I have and go across America (North and Central) with my family in a RV. No debts, cash on hands and my website to pay for my expenses. I will continue to work (on my business) but I will be completely independent. The goal is to come back after one year (once winter is gone! hahhaa!) and continue working from home. There are so many other things I’d like to do besides going to work… but all my projects will end-up by working. The big difference is that I want to work for me and not a big firm.
    Cheers,

    Mike

  101. Anonymous,

    We’re definitely on the same page.

    The corporate ladder is like this extremely steep staircase that leads to absolutely nowhere. I once came upon this video of a comedian talking about people chasing this box throughout life. And they chase it through school, college, and work…until they finally make it to the corner office. They open the box…and nothing is in it.

    Life’s way too short to be beholden to an employer for most of it. You’ve got the right mindset!

    Best regards.

  102. Mike,

    That sounds great. Reminds me of what Derek Foster did a little bit. Sold their house and did the RV thing for a while. He also worked on some video projects and writing while he did that. Sounds like a lot of fun. One big adventure. 🙂

    I’m in a similar situation since I basically work for myself, except I’m stationary. My significant other, Claudia, actually would love to RV around once her oldest son is out of high school. We’ll have to see about that. I’m kind of keen on staying here in Florida. It’s already my little paradise.

    Have fun with the adventure. The nice thing is you’ll be able to travel south in the winter and north in the summer. Perpetually warm weather to get outside.

    Best wishes.

  103. DM,

    I totally agree with you. Different strokes for different folks. My parents have tenants and does require some maintenance. Issues come up when you least expect it and you need to have the ability to deal with problems. It is stressful enough being on call 24×7 for my IT job. I would not want any calls for rentals. While we were on vacation in Hawaii, my friend received a call from his tenant on the main land regarding an issue. Having rentals are not for my wife and me. I like your phrase of don’t have a desire to buy a job! Our passive income is all from muni bonds. We are FI and we sleeps at nights. We are still working and hoping for our severance packages since the company is starting layoffs at the end of the year.

  104. Adam and Jane,

    It’s all about being able to sleep at night, right? 🙂

    We’re definitely on the same page. I don’t disagree that one could potentially achieve FI earlier by pursuing rentals, but, how independent are you really if you have to deal with the occasional hassle? I think Warren Buffett has it right in that the joy of being financially independent is that you’re able to work (or not work) only with people you like. And who knows if you’d like your tenants?

    Thanks for dropping by. Sounds like you’re doing what’s right for you. And that’s all that matters.

    Cheers!

  105. My wife and I are just realizing FI. It is an interesting place to be because we are still grinding it out at work, partly because the ROI of my pension is 7%/yr. for the next two years and then it drops to 2%%yr. I will defiantly be retiring in two years at age 54. My wife likes to work, so she is planning on working to 60. I am not sure how much is insecurity of the unknown for her or that she really likes her job. My hope is she eases off in the next few years.

    When you are at this place you can do things like, stop paying for life insurance and just worry about living life; knowing the kids college is taken care of and you can buy more Chipotle Barritos than you could possibly eat. Dropping life insurance this month and moving the premiums toward dividend investments was our first real milestone in reaching FI. It is a new place to be as we live on 50% of our income and invest the rest of the after tax income in dividend payers.

    After retirement I will continue working on projects that interest me. I have been developing a pen making business and would like to take it to the next level. I like the “artist hours” and I like the smile that a finely crafted wood pen brings brings to people’s faces.

    Keep up your writing. The frugal perspective and consistent investing is a liberating equation. Something that I continually remind myself is that my dollar has the same value as Warren Buufet’s and that little soldier of mine is just as powerful as his. His army is just bigger!

    Thanks for a great article.

  106. Brad,

    Congratulations on achieving financial independence. You’re in rare company, I assure you.

    Life insurance is something that I see no value in for those of us who have sizable assets working for us. If something were to happen to me right now, the vast majority of my wealth could serve the same purpose. Great move on reducing your monthly outlay while simultaneously increasing your passive income with the difference. Plus, you suffered no drawback.

    “Something that I continually remind myself is that my dollar has the same value as Warren Buufet’s and that little soldier of mine is just as powerful as his. His army is just bigger!”

    I like that! You’re exactly right, though. That’s something I try to show through my writing and results. I wrote an article a while back on building your own Berkshire. Of course, we won’t be controlling companies worth billions of dollars any time soon. But we do’t need to. If we can do something similar to Warren Buffett on a much smaller scale to match our smaller scale lives, then that’s all that matters. As long as your army is big enough for your purposes, you’re good to go. 🙂

    Thanks for dropping by. Appreciate the support.

    Best wishes.

  107. I believe my little soldier comment is something that solidified within me from that comment you made (and I read) in a previous post. Just a testament to the significant work that you are doing.

    Just a side note. I noticed that my son who is just 21 has your link on his desk top. Thanks for your work and life experience that you are sharing, it is making a positive impact.

  108. Brad,

    Wow, that’s so great. I’m glad he’s checking the site out. Even if he only absorbs and executes a fraction of what I’m talking about, he’ll be in great shape. At 21, he has the whole world in front of him.

    Appreciate the support very much from both of you. Keep those soldiers fighting! The great thing about those soldiers is that they take POWs, which they eventually convert into additional soldiers. The army just grows and grows…

    Cheers!

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