Freedom From Gives You Freedom To

stressfreeI’ve been writing a lot about freedom lately. Probably because I’m more free than I’ve ever been before and perhaps as close to financial independence as one can possibly get without the prerequisite passive income. So you could say it’s been on my mind. As such, I’ve been incredibly interested in sharing the benefits that my freer lifestyle has brought me so as to potentially inspire you to reach for your own goals, dreams, and aspirations.

While there are benefits and drawbacks to everything – I hope to write about the drawbacks of this lifestyle at some point – I can only say that living life largely on my own terms is everything I thought it’d be.

And what I’ve really found throughout the process is that freedom from has allowed me freedom to. That’s true not only in 2010 as a young, hungry Jason eager to dig his way out of debt, but also true – perhaps even more so – of the Jason today.

Freedom From What?

So when I say freedom from gives you freedom to, what does that mean? What should we have freedom from?

Well, this is somewhat of an individual call, but I can tell you that I am mostly free from the following things:

  • The desire to have the nicest house on the street.
  • The desire to drive the nicest car in the neighborhood.
  • The desire to make more money or have more wealth than anyone else.
  • The desire to travel the world in luxury, staying at five-star hotels.
  • The desire for status.
  • The desire to wear bespoke suits.
  • The desire to impress anyone.
  • The desire to go out to eat every day.
  • The desire to consume more than what I really need.

While desire and drive are, in my view, important factors for a successful life, they’re also easy to misplace which could potentially set you down a path that won’t deliver the type everlasting happiness and joy that you might think is awaiting you.

Now, I have desires like most people. But whereas my energy used to be focused on making more money, attaining more stuff, and gaining status, I was able to, over time, realign that focus toward different desires which have absolutely and completely changed my life for the better.

But if one has freedom from desires and things that don’t bring true and lasting happiness, what freedom do they gain?

Freedom To

While I’ve found freedom from desires for things, status, and experiences that may not bring me everlasting joy, it’s equally important to replace freedom from with freedom to. It’s also important to note that because our money, energy, time, and focus are all finite, freedom from and freedom to are sometimes mutually exclusive.

You can’t spend 50 hours per week at work to collect a paycheck and simultaneously be at home that entire time working on projects that actually mean something to you.

Likewise, unless you’ve inherited millions of dollars or won the lottery, it’s unlikely that you can live in a mansion, eat out every night, spend unchecked, and still be financially independent. And even then, as we’ve seen all to often with past lottery winners and athletes that have wasted away millions, it’s important to really think about what kind of freedom and lifestyle you want and what you can afford.

So I have freedom from.

Just as importantly, this is what I have the freedom to:

  • Set my own schedule, waking up and going to sleep when I want.
  • Have a routine or a non-routine.
  • Work on projects that I’m passionate about.
  • Explore my local area on my time (Ever go to the beach on a Tuesday?), rather than the work-home-work drill.
  • Spend time with people I want to spend time with and avoid those I don’t (no co-worker drama).
  • Take on opportunities that interest me.
  • Decline opportunities that don’t.
  • Stay true to myself.
  • Make my community a better place through volunteering.
  • Live life on my terms by owning my own time.

As I previously mentioned, our time and energy is finite. So even someone who’s financially independent or fairly close to it can’t do everything all at once. But every day is a new opportunity to take on or not take on whatever you want. Is today a beach day or a volunteer day? Is tomorrow vegging out in front of movies or finishing up a project?

What I’ve also noticed is that we change over time. And that’s a good thing. Our interests change, our creativity ebbs and flows, and new ideas enter our spheres of interest. But being free to gives you the chance to change it up as you go.

Want to study marital arts for a year? Go for it. Then maybe it’s writing a book or painting a gallery’s worth for a year. After that interest has run its course, you can then then try out volunteering for local causes that become interesting. Or maybe you just want to fish every body of water you never had a chance to before. Whatever your interests are now, freedom from the stuff that doesn’t really matter gives you the freedom to vary your interests and how you spend your time over the course of your life. Live multiple lifetimes in one life!

Learning As We Go

For me, it’s a learning process. I didn’t have complete freedom from all the superfluous right away and I still don’t. I’m not a monk living in a temple, after all. Moreover, I didn’t have so much freedom to right away. It’s something that took years and years (Did I mention years?) of hard, hard (Did I mention hard?) work. And I’m still learning, changing, and growing every single day. Life would be boring if that weren’t the case.

As such, it’ll likely be the same for you. Even if you’ve already had that “eureka” moment where you all of the sudden realize you’ve been living in cave, it takes time to free those chains, escape, see the light, adjust to the light, and figure out what’s next. It’s not an overnight process.

Still Freeing Myself

And just like I’m learning and growing every day, I’m also slowly freeing myself from even more, which allows me more and more freedom to. Every dollar I invest, every dividend I receive and reinvest, and every dividend raise gets me that much closer to complete freedom to.

But I’ve also noticed that I’m sometimes guilty of complacency. I think it’s easier to get complacent as you go, especially once the portfolio is well into the six figures and the dividend income is enough to cover a very healthy chunk of your expenses.

Now, that’s not necessarily a bad thing. If you’re well on track for your goals regardless, then a little complacency will probably cause little harm. We’re not robots. However, when I say that, I’m speaking of the financial consequences. There are also other consequences to becoming complacent, like losing your edge. I quite like my edge.

So I’m going to sharpen the edge up a bit, even though I surely don’t have to.

Selling My Car

I’ve decided to sell my 2006 Toyota Corolla. Do I have to? Absolutely not. I could afford 31 of them – one for every day of the month – and still have money in the bank. But I just don’t need it. I work from home now and Claudia takes the bus to work anyway (she hates driving). Other than the occasional extracurricular activity that Claudia’s son takes on, we rarely use the car. It’s a convenience and a luxury. It’s great to have, but completely unnecessary.

Furthermore, we lived for years without a car. And that was when I working full-time – the irony of showing up to a car dealership by bus. No reason we can’t again, especially if it’s even less necessary these days.

So there’s the financial aspect. Getting rid of the car allows me freedom from:

  • The cost of the car itself (in the form of opportunity cost since I paid cash).
  • Insurance costs.
  • Paying for and using fuel.
  • The chance of catching a speeding or parking ticket.
  • Liability, which can be particularly expensive in case an accident were to occur.
  • Maintenance.
  • Repairs.

But there’s more than the quantitative financial reasons. I also have the freedom from:

  • Getting in a steel box every time I need to go somewhere, which isolates me from society.
  • Polluting the atmosphere more than necessary.
  • Worrying about if something will break.
  • Dealing with traffic and crazy drivers.
  • Taking trips across town that I wouldn’t ordinarily take.

Freedom from all of that gives me the freedom to:

  • Walk more, improving my health and my wealth.
  • Be a part of my environment, rather than just driving through or past it.
  • Challenge myself to get around a city not known for its public transportation prowess.
  • Make every day an adventure.
  • Save a lot of money.
  • Avoid stress.
  • Become financially independent even earlier by saving more and needing less.

Not everyone can get by without a car. Some people absolutely need a car. And that’s fine. But we designed our lives around living car-free years ago, which means my complacency regarding owning a car is simply me being inattentive. So selling the Corolla is something I’m going to explore over the coming weeks.

This decision alone will give me a lot more freedom all in one fell swoop. Not just more financial freedom by spending a lot less and needing less passive income to be financially independent, but freedom to go out into the world and explore it a bit more viscerally, challenging myself and keeping myself sharp along the way.

Conclusion

I think what we can learn by the bullet points above regarding selling the car is that every decision in our lives can be laid out like that. When you look around your life, what excess is there that holds you down? How much freedom from could you have, and how much freedom to could that afford you?

Some things can’t be eliminated and there are many things in our lives that we don’t want to or shouldn’t eliminate. Furthermore, we’re all in different situations with different lifestyles. But keep in mind that freedom from can in fact allow you freedom to. So one has to ask themselves what they want out of life. What makes you happy? What makes you unhappy? How do you maximize the former while minimizing the latter? How does that interplay with freedom from and freedom to?

And the great thing is that freedom to tends to compound itself. Every dollar you can save through an action that allows you freedom from affords you the freedom to invest that same dollar. These decisions over and over again grows your wealth and income to the point to where you have more freedom to than you ever thought you’d have.

What do you have freedom from? Has that afforded you freedom to? How has that changed your life?

Thanks for reading.

Photo Credit: phasinphoto/FreeDigitalPhotos.net

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112 Comments

  1. Hey DM, love how you mentioned about all the extra financial aspects of owning a car. As I bought my first car mid 2014 as an 18 year old I only assumed I would have to pay would be the total cost of the car and for fuel each week. This insane prices for registration, insuarance, repairs (which I’ve had a few) and speeding/parking tickets have really added up ! If only I had the freedom not to own one ! One day though 🙂
    Keep it up DM !

  2. DM, i think different people have different perception of freedom. For me, I would definitely still continue to do what I am doing once I have achieved FI. However, you are right that you can live your life any way you choose once you get there.
    Div4son

  3. chasinggains,

    Cars are like cash incinerators. They just burn the money up. Nonetheless, they’re oftentimes necessary. I wish the US were more like Europe with greater public transportation options across the country, but it’s just not to be. Sarasota has a pretty solid bus system, though it certainly could be improved. I’d eventually like to move to another area (either in this city or another city) that is even easier for walking/biking/busing around. We’ll see.

    Best of luck saving and investing your way right through car ownership. 🙂

    Cheers!

  4. Div4Son,

    Absolutely. What freedom is to me might be (and likely will be) totally different for you. But that’s what’s so great about financial independence. It allows you customize your life to meet whatever expectations and visions of freedom you might have. 🙂

    And like I recently wrote about, work and financial independence aren’t mutually exclusive. I personally plan to continue writing once financially independent, albeit at a much slower pace. However, I may change my mind on that and stop writing. And that’s what’s wonderful about FI – you can largely do as you please.

    Thanks for stopping by!

    Take care.

  5. Im searching for the gumption to be that bad ass. Kudos to you if you wind up ditching the horseless carriage.

  6. Nothing says maintaining your edge quite like selling your car. It’s ironic because for many eager 16 year olds, a car represents freedom from but in a different sense I presume. You definitely keep it interesting for your readers. Good luck with the prospective sale!

    FD

  7. Hi, Dividend Mantra.
    Thanks for the wonderful post. I definitely struggle with complacency every now and again. I drive a 2007 Chevy Impala with over 120,000 miles on it and I often fanticize about how nice it would be to upgrade to something new. Additionally, Mrs. Jones & I live in a modest house and it is sometimes tough to watch our peers move into McMansions. Luckily, the drive to be financially independent is much stronger than our need to splurge. We’ll treat ourselves to a nice dinner every once and a while because we deserve it. Best wishes! Good luck selling the car!

    Goosemann Jones
    Flight to Dividends Blog

  8. I think what is interesting about this decision is really the history of your ownership of a car. You bought it at a screaming deal from an older person, made some strong memories in it with the trip and life lessons back in Michigan, and ultimately used it as tool to get back to your happy place, both financially (once sold) and in Florida.

    This chapter in your inevitable book: “The Life of Jason: 5,000 miles and Pursuit of Happiness”

    Your life is what you make of it, and honestly, you’re maximizing life without the car, much like you were a little more than a year ago. I’m looking forward to seeing that bonus purchase in the near future (assuming it isn’t going towards taxes!).

  9. I think giving up the car is a fantastic idea! At the end of the day, cars are just a money pit and take up so much more from us for a little bit of a convenience. Really enjoyed reading that article. Keep up the great work!

    regards
    R2R

  10. Hi DM

    Exactly the point of financial freedom. They are a subset of freedom.

    Want to learn how to become a barista? Go for it. Want to learn how to lead a group of animals? Go for it. Want to attend an AGM for Berkshire? Go for it. Want to lie down on the beach and get wasted? Hmm, maybe think again in this case 🙂 but go for it.

  11. Josh,

    I’m doing my best over here. And not only to save money and become FI as fast as reasonably possible, but also to improve myself. And I think this move will accomplish all of that. 🙂

    Thanks for the support!

    Best regards.

  12. W2R,

    Man, I’d love to set aside time to write a book. I have some great ideas, but I’d have to take some serious time off from my current writing regimen. It would be a great chapter! 🙂

    Appreciate all the support. It’s all about improving oneself every single day. I don’t accomplish that as much as I’d like, but I try.

    Best wishes!

  13. R2R,

    Cars are expensive. For many, they’re a necessity. But there’s no doubt they’re a money pit. However, we purposely moved a few years ago to one of the few places in town where it’s reasonably realistic to survive (and possibly even thrive) without a car. Downtown Sarasota would be even easier and better, though housing is more expensive. Always trade-offs. 🙂

    We’ll see how it goes!

    Cheers.

  14. B,

    Definitely. It’s about doing what you want…what makes you happy. Although I couldn’t do it for the rest of my life, I wouldn’t mind spending some time just relaxing by the beach. Some of my most creative ideas have come about when I was just sitting around. 🙂

    Thanks for stopping by!

    Best regards.

  15. Dividend Mantra,

    Excellent post and well written. I do not have a car right now and have not had one in about 4 years. When the inspection was do on my last car, I took it in to get a pre-inspection done. There was a hole in the K-frame on the car, and I was told if had to be fixed in order to pass inspection. I decided to sell the car as is, but told the buyers. The car was about 11 years old, and it never burned oil at all. New oil was put in when an oil change was done. I sold the car so I could save and invest more money and move to a better part of the country.

    To have a car or not have a car is all about personal preference. Right now for me, I much prefer to grow my passive income to have less stress and more choices in my life.

    You are totally living your life on your own terms. Work places can be emotionally draining especially when people are stressed out due to things they do or have outside of work. They are cranky beyond belief sometimes. I often say, “If you do not like your job, why don’t you work somewhere else?” . The response I get, “you do not have a house to pay for”. I guess they think renting is free. When I leave work each day, I say to myself “peace and quiet.. Thank God !!” . I am looking forward to the day I do not have to work anymore.

  16. Good questions!

    Freedom from needing a big, modern house gives me freedom to live near the center of town (In a small house built in the 1950s).

    Freedom from wanting the latest fashions gives me freedom to buy (classic) clothes much less often. Also, I don’t have to keep up with fashion, which I really don’t care about. Oh, same with cars–I get to buy a reliable car, which is cheap/easy to fix because it is a common model, and then keep it for a really long time.

    Freedom from reliance on others for things like hair cuts and cooking gives me freedom to take care of these things when and/or how I want to.

  17. Awesome Post Mr. Mantra.
    It’s always a pleasure reading your posts. I’m proud of you and happy for you that you have found your inner calm and peace. Life’s short. Life’s about Happiness. You know what you want and how to get there. I say right on! To greener pastures isn’t always better. It’s where you water it. You keep up the great work. Great things lies ahead for you. I hope you never stop hustling though. Much Love dear friend. Tyler.

  18. Hi DM,

    Interesting timing! You posted this article in the same weekend when I sold off my two old couches.

    After having moved four times in four years, my wife and I are acutely aware of how much stuff we own and what we actually do and don’t use. Plus: we’re both minimalists so we have no qualms about getting rid of the things we don’t need anymore. So today all our stuff easily fits in a 100m2 apartment.

    This has been quite a journey for me, because four years ago I lived in a large 400m2 house by myself, and I had furniture in every room. So I managed to downgrade by 75% 🙂

    Anyway, two weeks ago we decided to sell off our book collection (and get rid of the bookcases too), and this weekend we got rid of my old couches, which I’ve owned ever since I was a student. We asked ourselves a simple question: would we buy these couches today? And the answer was no, so we sold them.

    We’re using the extra money to fund my wife’s career change. So we are in fact exchanging stuff for experience.

    Keep up the good work DM! You’re a big inspiration to all of us.

    Cheers,

    Mark

  19. I think it is one of the best decisions you made, to get rid of the car. They’re definitely a black hole looking for your wallet!

    If only more people would be able to get their mindset into freedom mode, rather than being chained to “stuff” and “even more stuff”. Can you imagine what the world would look like?

    Looking forward to what stock you will buy with the proceeds of the car. I’ve got a lump sum coming soon too, and I can’t wait to put it into the market.

    Cheers

  20. I love being free from caring about what other people think of my frugal lifestyle. It’s sort of the opposite of keeping up with the Joneses. I can pursue frugality on my own terms, which lets me make decisions based on what I want out of life–not what society says I should want.

    P.S. I think it’s great that you’re able to go car free–nice!

  21. Im fortunate enough to have freedom working for “the man”… I have a very healthy relationship working for my father and I wouldnt trade it for the world. However in my life ultimate “freedom” comes down to being able to choose what I work on from day to day.. like you said projects that interest you… a very nice article DM… I have noticed in my own life that it is very important to be conscious of who you are at all times and your effect on the people around you… i.e. complacency…

    Good day!

  22. I have a few ways to get the car expenses way down:

    1) Do the mechanical repairs yourself and buy genuine used parts online on CL and ebay. (Yes it is possible, even in apartment complexes that don’t allow repairs. Use a friends garage or a car wash bay, even the side of a remote dirt road works.) Also buy a Honda with a 4 cyl and manual transmission, they run forever and don’t break down.

    2) Get rid of insurance costs: In Florida you can self insure your own car with 50k of liquid assets, which you have.

    3) Buy a highly fuel efficient car.(Your corolla is ok on gas but not great) My preferable vehicle is a 2000-2006 Honda insight for about $3,000. It can easily get 65-70 MPG. My personal insight was costing me about $5-10 a month in gas. The main battery packs die with about 10 years of use but the car is still completely drivable with a bad hybrid battery pack, it is just a little slower.

    4) Don’t do maintenance on the car other then doing a oil change yourself every 10k miles. An oil change will last at least 10k miles in a Honda. Maintenance is a scam for the dealership to get you back in and fleece you. Don’t change tires unless they pop,(If they pop you can find used tires cheap or visit tire shop’s disposal yards after hours for free tires) if your tires are really bad don’t drive in the rain.

    5) Don’t wash the car, that is a waste of time and money, a dirty car will also detract thieves. A Honda Insight is all aluminum and will not rust ever. Keep your windows clean with the complementary free squeegees at gas stations.

    With these tactics my car expenses have been reduced to registration fees and gas which amounts to less then $200 a year.

  23. Jason

    These are wise words spoken. I notice, that you have allready found your inner freedom and life balance. It took me also several years to realze that I don’t need all the consumer stuff to be happy. Today I feel happy sharing free time with my family or to practice my hobbies. Frugality is not only a tool on the way to financial independence, it is also a lifestyle for me. It has also to do with respect to the products I buy, towards the people who produced these products and the resources we need to produce. For example frugality is for me not buying the cheapest shoes, but to buy quality and wear them 4-6 years. I also use a bicycle, now 21 years old. But it is still running, why buying a new one? This attitude gives me also inner freedom. I have not to catch up with others, because my inner value comes from my personality and knowledge and not the things I bought. I noticed also, that very rich people like Buffett, Gates, Walton or S.Jobs have a similar attitude. In this way,

    Regards

    Marco

  24. DM,

    I think it is a pretty good time to sell your car. There are millions of people with tax refunds burning a whole in their pockets. I would suggest pulling the trigger within the next month or so to get maximum value. Supply and Demand 101.

    MDP

  25. FD,

    That’s funny. You’re right in that a car generally represents freedom for most young people. I know it did for me, especially since I lived in a very rural area at the time. You just couldn’t get around without a car back then. So I was very excited about driving and getting out of the house. Nowadays, I’d prefer to have a different kind of freedom. Life changes and we roll with it. 🙂

    Thanks for dropping by!

    Best regards.

  26. IP,

    Nice job there. Owning or not owning a car is a preference for some like us; however, for others it’s not a choice. But one has to design their life around not owning one. It’s not like we could live anywhere we want here in Sarasota or Florida. We have to pick and choose our locations. Great job giving it up and building the passive income!

    I know how you feel. I was completely burned out there at the end. You’re getting closer every day. 🙂

    Cheers.

  27. Debbie,

    That’s fantastic. You’re free in so many ways that a lot of people don’t think about. I’m also free from relying on others to cut my hair, but only because I shave my head. It’s nice in that I don’t have to make an appointment and sit down for a haircut, but unfortunate in that it’s no cheaper because of the cost of blades.

    Freedom from worrying about what society thinks gives you a lot of latitude in terms of what you have freedom to do with your own life. It’s really amazing. 🙂

    Thanks for sharing!

    Best regards.

  28. DH,

    Life is indeed all about happiness. Financial independence and the freedom it affords is a fantastic way to maximize that happiness, but it’s all in what you make it.

    Appreciate all the support. Looks like all is well over there for you with all the stock purchases lately. 🙂

    Best regards.

  29. DM,

    Love your approach to investing- and even more so, life! Quick question for a beginning investor- I know a decent amount about different investment strategies (value, dividend, growth, GARP, etc.) and lean towards dividend myself. But I’m starting with a very small bankroll and wanted to get your thoughts on individual dividend stocks vs. indices for someone in my position. I know that in general individual stocks are preferable, but per trade commissions are more of a factor with a smaller total investment worth.

    Cheers!
    EL

  30. Mark,

    That’s a great story there. Trading stuff for experiences works out for most people. I know it works pretty well for me. 🙂

    I hope everything works out great for your wife and the new career. Very exciting. Freedom from a big house you don’t need and a bunch of stuff to fill the empty space has given you guys the freedom to explore this new opportunity!

    Take care.

  31. M,

    I sometimes think it’s a shame that more people aren’t freed from the chains of consumerism, but I also don’t necessarily think this lifestyle is for everyone either. I’m careful not to be dogmatic about it. I just hope that anyone who is chasing after stuff and working the necessary job/hours to afford that lifestyle is happy with their choices. Though research tells us they’re probably not, I hope they are anyway.

    We’ll see how active I can be with stocks. I still have a pretty hefty tax bill, though the car sale will alleviate any concerns there completely.

    Happy shopping with your upcoming lump sum!

    Cheers.

  32. Mrs. FW,

    I’m with you. Worrying about what others think is stressful. I find that tuning out society is freeing in a way that’s indescribable. I couldn’t imagine ever going back. 🙂

    Looking forward to living without a car again. We truly don’t need it. And there’s always a rental or something for the times we do. I look back fondly on the years I lived without one, so I think it should go pretty well once again.

    Thanks for dropping by!

    Best regards.

  33. DY,

    Some of us, like yourself, are lucky to be in a unique work situation where there’s a healthy relationship that allows happiness and a great work/life balance. Most people probably don’t share that luck, but it’s great for those that are fortunate. The great thing about your situation is that you can happily march down the path to FI while enjoying your job along the way. A lot of people struggle with the balance of trying to be too aggressive because their jobs suck. I know that was certainly my situation for a while there.

    I hope that fortunate position persists for you all the way along. 🙂

    Cheers!

  34. Brij,

    Manipulated. That’s a good word. I think that’s apt. Many people are unknowingly manipulated into a certain lifestyle. Some don’t mind it. I, however, minded it quite a bit and decided to free myself from it. Life is much better these days. 🙂

    Keep up the great work over there. And drive that Honda into the ground!

    Take care.

  35. frankz,

    Those are pretty good suggestions if you have to drive a car. I’ve heard good things about the Insight. Legendary car there. Wasn’t aware you could continue to drive it if/when the battery went bad. I just assumed it was a necessary repair.

    I wouldn’t suggest self-insuring, however. If you cause an accident and that person even twitches funny, you might be out a lot of money. I used to have a personal injury lawyer here in town as a client when I was working at the car dealership. He doesn’t drive a Porsche 911 and an Audi R8 for nothing. That’s like playing Russian Roulette, in my view. Same as self-insuring yourself for healthcare. I did it for a few years there early on, but it was a risk that shouldn’t be underestimated.

    And I also don’t think that one can do all repairs themselves. Depends on how mechanically inclined you are. Furthermore, a hybrid like that can actually be dangerous to work on around its electrical systems. I know the newer hybrids can actually kill you (I went to a class on how to avoid dying) if you’re not careful. Oil changes and headlight bulbs are one thing. A bad sensor causing a MIL is another. Really depends on how motivated/inclined you are. And most cars, even dating back to that time, require special computers to communicate and turn the lights off. We used to have people come in all the time with old VWs and Audis where they tried to fix the cars themselves and ended up spending more money than what was necessary.

    But that’s fantastic that you’ve dropped the costs down so much. However, I’d be careful about the nonchalant attitude towards insurance.

    Cheers!

  36. Hi Jason, i sold my car 2 years ago, living in a big city implies it absolutely unnecessary

    My family don’t understand yet our concept of freedom, but i’m working on it 😉

    Regards

  37. Marco,

    Agreed on frugality there. Some people view it as a means to an end. I view it more as a great lifestyle. It allows you to focus on what matters and get rid of what doesn’t. While it might not be for everyone, I think it’s too often dismissed.

    I’m glad you’ve found your inner peace and the freedom that comes with. You’re in rare company. Enjoy it! 🙂

    Cheers.

  38. EL,

    I wrote an article a little while back that discusses what I would do if I were starting all over again. Though I’d ignore the stock picks (those aren’t evergreen), the overall message is still relevant:

    https://www.dividendmantra.com/2014/05/if-i-were-starting-all-over-again/

    I don’t see why someone with a small net worth or a modest income can’t do what I did because I had a small net worth (negative, actually) and I was only making about $40k when I first started. There are even more brokerage options available compared to when I first started that could allow one to invest with even less. I still use Scottrade, so I generally try to invest about $1,400 at a time. That limits commission fees during the accumulation phase to about 0.5%, but those fees will largely be gone for the duration of FI.

    Even VTSAX admiral shares will cost you $250/year on a $500,000 balance (in FI). Meanwhile, someone who is living off of their dividend income will pay $0. And that’s really not comparing apples to apples due to the fact that one strategy requires the selling of assets.

    I hope that helps! Let me know if you have any other questions/concerns.

    Indexes are a fine way to go as well. Just make sure that fees aren’t the main reason you go that route because it’s unlikely you’ll do better over the long run when comparing them out over 30 or 40 years.

    Best wishes!

  39. Finanzasmania,

    Great stuff there. If I could live the rest of my life without a car, I would. We’ll see how I do.

    What big city do you live in?

    We live in Sarasota, Florida. About 50,000 people here, so it’s not particularly big. I’d like to move to a city with even more walkable amenities, but that’s not in the cards right now. In the meanwhile, the bus system is pretty solid here. And the weather makes it so that it’s easy to walk/bike for most of the year.

    Cheers!

  40. It’s awesome that you’re car-free. That is a huge step. Makes sense though, since you now “work” from home, letting the car collecting dusts while still paying for it makes no sense.

  41. Freedom from…Freedom to
    Good one, DM!
    Suggestion for you to consider – like MMM, don’t respond to every blog reply. He responds to very few. Let the crowd generate their own discussion. This will give you more time to A; sit on your ass and drink coffee and enjoy life or B: research and write another blog post.

  42. I’ve been enjoying the personal posts and thinking about freedom a lot myself. I wish I could get rid of 1 of our 2 cars, but Houston is vehicle-centric and we don’t work in the same parts of town. That will have to wait for post FI.

  43. Great Step Jason!
    As you have discussed it works not for everyone.
    For myself its not possible without car due to the difference between home and work.
    But for people they can work with it, its a great step to avoid stress, saving money and make a better place.
    Rgds,
    Patrick

  44. If you dont have a car, you also don’t have the freedom to:
    * Drive to a nice place anytime you want (no, you’ll always be dependent on bus, train, etc)
    * Have a romatic ride just you and yourself into the deep nights in Florida, either with the radio on or off, just relaxing in your steelbox, the hard night comming down on you and the stars reaching for more
    * Make a quick escape at night to diner, no you depend on public transport or on homne delivery

    I feel sad when I think of not owning a car, because it makes me sooo depenend.

  45. Tawcan,

    I’m looking forward to living without a car again. It adds a little challenge to everyday life, which is fun and interesting. Getting in a steel box and going anywhere and everywhere is easy, but, in my opinion, offers less “life”.

    We’ll see how it goes. There are occasional events that Claudia’s son participates in, but we can always figure those out as we go.

    Thanks for dropping by!

    Cheers.

  46. Europe indeed has some pretty solid public transportation, which makes it easy to live without a car. There are very few places in a city where the public transportation doesn’t take you – that’s when you would take a cab ( very rare). The other nice thing about Europe is that people walk on the streets.

    it is interesting to think about freedom. I took the day off today, and did some stuff like grocery shopping and went to the bank at around 9 – 10 AM. The store and the bank were pretty much empty. I was in and out in a few minutes, which left me extra time to do other more enjoyable activities.

    In contrast, when you go on the days when other wage slaves like myself get off, the places are packed and it takes a lot of time to navigate the stores and check out.

    When you have all the time in the world, you can actually “spend it” much more efficiently than the person who is always low on time..

    Either way, are you thinking of buying another scooter 😉

  47. Kenneth,

    I can’t speak for Pete, but I generally enjoy conversations with readers the most. There are a few knuckleheads here and there, but the experience is mostly great for me. So not responding to comments anymore (other than a selective few) would be a bummer for me. There’s the chance that it may get to the point one day to where I can’t feasibly handle the logistics anymore, but I’m still okay. I sometimes don’t know how I get it all done with my crazy writing schedule (40-50 articles per month now) but I’m having fun for the most part. 🙂

    Cheers!

  48. Adam,

    Yeah, I’ve heard Houston is pretty tough without a car. I bet it could be done, but you’d have to be very careful with arranging your life just right. That’s kind of how it is here in Sarasota. It’s not a world-class city in regards to public transportation, but we picked a specific condo/apartment complex out years ago that is located on two major bus lines and then we made sure that the schedules worked okay for our jobs. It’s not easy, that’s for sure. I’d personally love to live in a bigger city with better options (like, say, Miami) but that probably isn’t in the cards for now.

    Glad you’re enjoying the content lately! 🙂

    Best wishes.

  49. Patrick,

    Thanks!

    It’s definitely not a possibility for everyone. I’d argue that it’s more possible for more people than they might imagine, but you have to really design your lifestyle correctly. And for some, it’s just not possible due to circumstances like children, work, etc. So all you can do in those cases is try to make sure you’re being reasonable with your vehicle choice and be cognizant of how much you’re driving. Always pros and cons. 🙂

    Thanks for stopping by!

    Take care.

  50. Zoolokhan,

    Well, I’ve lived with and without a car and I can’t honestly say I’ve ever just drove somewhere to drive there. At least, not since I’ve been an adult. But there’s no reason you can’t take a late night bus ride out to the beach (or a park), lay a blanket out, and actually enjoy the stars without concentrating on traffic, etc. Different strokes for different folks. 🙂

    Cheers!

  51. DGI,

    Europe’s infrastructure is totally different than ours. I really wish we had better public transportation options like Europe, but our infrastructure was largely built around carriages and, later, cars. I think living without a car is still doable here in the US, even in small cities, since I’ve done it, but it’s not always easy. Benefits and drawbacks to everything. But I really do wish we had at least one city here in the US that was European in its infrastructure. Outside of NYC, San Fran, D.C., and Chicago, the public transportation options aren’t that great. I am interested in checking out Miami at some point here. It’s very spread out due to sprawl, but the downtown/Brickell and Miami Beach areas look interesting in terms of thriving (rather than just surviving) without a car.

    Great points there about being able to spend your time more wisely on weekdays. I plan to write about that at some point. I’ve discussed it a little here and there, but it really deserves its own post. It’s awesome to be able to go out and about and do things without bumping into everyone else on the same schedule, draining even more of your precious time. It’s a bit different here in Sarasota, however, due to our seasonal nature. Our population doubles this time of year with a lot of retirees. So I’m not the only game in town. 🙂

    Not sure about another scooter. I’m 50/50 on it. I think it’s a great way to get around town and have some of the freedom of a car without most of the drawbacks (purchase price, insurance, fuel mileage), but it’s also not totally necessary for me anymore. I originally bought one back in the day because the bus was sometimes late. So I had to have a backup method of transportation to get to work on time. I don’t really have that need anymore, but it still would be nice to have a way to zip around my local area. We’ll see. A bicycle would largely get the same job done, though I’d be limited in terms of distance.

    Thanks for stopping by. Enjoy the rest of your day off!

    Best wishes.

  52. We’re getting more and more freedom, just by following our dreams and not worrying about what other people think. I think it’s awesome you are getting rid of your car – I wish we could but as someone who current does a 50 mile commute, it may be a struggle… one day I’m hopefully going to get a job which I could either walk or cycle to; that’s definitely the aim.

  53. To each his own, I guess.

    I love owning a car, to me that is freedom. I get to be completely self sufficient and go anywhere I want whenever I want. My car is paid for, and is nothing fancy, so the costs of ownership are negligible to me.

    Referencing your comic strip above, I also love my smartphone. I have access to all the information of the internet and more in my pocket, it’s kind of a miracle. I was a late adopter to this trend in the name of frugality, but I think it’s come along to a point that it is completely worth having nowadays. I find this cost negligible as well.

    I drink fancy coffee every day, that is far more expensive than it needs to be, and I derive an insane amount of pleasure from it. Completely worth the expense to me. (I don’t smoke, but I understand people who feel the same way about cigarettes).

    What do all of these things have in common? To the extreme frugalist, these all seem like extravagant expenses perhaps. To me, they OPEN THE DOOR to a lifestyle which allows me to earn well over six figures in income and invest over $10k per month in Dividend Growth Stocks. I think it would be very difficult for me to operate on this level without the car, phone, and caffeine. (I am not in the “rat race” by the way, I am self employed and take all the time off I wish – it’s all about deciding what your goals are going to be.)

    It’s the difference between “save a nickel” mode and “earn a dollar” mode (to paraphrase Adam Carolla). Yes, one should live within one’s means. (and I do. My monthly expenses are less than 3k, a very acceptable percentage of my much larger income. Also not much higher than Jason’s. I save over 50% of my income, mostly because I have focused on earning power more than cost cutting.). It is, however, very difficult to be in both modes at the same time. Being in an earning mode will always reap larger rewards than an extreme frugalist mode, because THERE IS NO LIMIT to what one’s income can be, but you can only slash the budget so much. Who cares if your monthly expenses inflate from 2k to 3k, when your income has jumped many times more than that?

    In the long run, one is better off focusing on earning significantly more income I believe, if financial security is the goal. (Not suggesting Jason rejoins the rat race, but I believe he can earn much more through creativity and self employment/business ownership – a path he is already on). Jason, I also think you hit on something significant in your paragraph above about complacency. Your portfolio, while commendable, is not really that much money. I think trying to retire on something like 18k per year is super risky, and just asking for trouble when “life happens.” Jason, if you really want to get your edge back, start hustling. I believe you can still retire by 40 (or in your early 40’s) with a net worth in the 3-5 million range if you start busting your butt now. Considering your original plan was to still be working super hard in that car dealership this whole time for peanuts, what I’m suggesting is not that crazy. With your current flexibility, I’m sure you could find a way to boost your earnings power by several orders of magnitude – think of all the stocks you could buy. Want to find out what real freedom is? It’s not taking the bus. It’s knowing that you have true financial security many times over – which is only truly possible I believe with a net worth in the VHNWI range – $5 million. I plan to be there within five years, be nice to see you there also.

  54. Nicola,

    Indeed. Following our dreams is what true freedom is. It’s all about being happy. Trying to fit in to a mold that society deems right or normal is not freedom, unless you happen to like that mold.

    I hear you on your commute. I don’t envy you. I had a similar commute many years ago up in Michigan and I vowed never to have one again. Not only is that a money suck, but it’s a time suck as well. But I’m sure you’re taking advantage of the best opportunities in front of you. 🙂

    Best regards.

  55. Daniel,

    To each his own, indeed. I think the confusion lies mostly in the fact that we have far different aspirations. In addition, I think we place importance on different things. The repeated mentions of high income and a big net worth tell me that you just have different priorities than I do. Nothing inherently wrong with that, though the research would tell you that you lie on the wrong side of the fence there.

    I think you may have missed the point of the article (and perhaps some of my other articles as well). Selling the car isn’t just a way to save money and achieve financial independence earlier, though that’s a great byproduct. It’s a way to be more free. Free from traffic, repairs, maintenance, driving, and the associated bills and hassles. Just like downsizing your home isn’t just a way to save money; it’s a way to have less worries in life.

    You either get it or you don’t. Noting wrong with that. I wish you much luck in achieving $5 million and all that. I personally have no desires for such superfluous wealth, though I know that that will likely also be an eventuality for me.

    “I believe you can still retire by 40 (or in your early 40’s) with a net worth in the 3-5 million range if you start busting your butt now.”

    I’m already free, bud, as I do what I want every single day. I’ve already busted my butt to get to where I’m at now. And I’m on track for complete financial independence by 40. Again, we simply have different views on freedom, independence, and what matters in life.

    Cheers!

  56. I’m also free, as I do what I want every single day too. I think you missed my point.

    I’m not sure what research you are referring too, but my priorities lie in getting true financial security, not in attaining “superfluous” wealth. $5 mil is not superfluous at all – we are all one lawsuit, natural disaster, or medical emergency away from destitution (don’t put all your faith in insurance, I’ve seen the ugly side of that industry). I believe you currently have a false sense of security in regards to your nest egg and how much income you and your family will need in the future.

    You are correct in that we have different priorities, my point is that your priorities are putting you at grave financial risk, in my opinion. Frankly, do what you want, I’m only speaking up because this is a public blog and some people are following your example. I hope my differing opinion will be allowed here, I know so many of these financial blogs are echo chambers that don’t tolerate differences of opinion (I am apparently not welcome over at MMM due to my distaste for index investing, for example.)

    My message to your readership is simple: Don’t shortchange your ambition! Unambitious goals, while perhaps easily achieved, are guaranteed to yield no more than unambitious results.

    Best Regards,

    Daniel

  57. It always feels good to cut a monthly expense from the budget! Curious on how you will report the cash from the sale. Will you put it against the cost you were amortizing, then record the rest as income? Any chance on making back more than you bought it for? IRCC you got a really good deal on it.
    Best of luck, and enjoy the savings! 🙂 And I definitely recommend doing one last, massive grocery shopping trip before you sell it! Load up on the big, heavy non-perishables before you have to lug it around on the bus, unless you plan on doing a rent-a-car thing for an hour or so.

  58. Daniel,

    Research:

    http://knowledge.wharton.upenn.edu/article/why-time-not-money-is-the-key-to-happiness/

    And there’s plenty more where that comes from, but a simple Google search will get you all you can read.

    $5 million is indeed superfluous for most of us. At a 3.5% yield, that would allow me $175,000/year to spend. That’s simply more than I could spend even if I wanted to. I see no reason to chase after more money knowing it won’t buy me more happiness. I liken it to air. I don’t see a need to breath in deeper when I’ve already got all the oxygen I need.

    I’m not going to argue with you. I wish you the best of luck with your financial goals. They’re simply not goals I would ever attempt or desire to share. I’m attempting to show how one escapes the rat race at a young age and with a modest income, which is something I’ve largely already done at 32 years old. And I hope that my experiences – which have been wonderful on the other side – inspire others. You’re clearly still running full speed. Good luck with that.

    As far as unambitious, I leave it to others to decide whether it’s more ambitious to become financially independent at a young age or chase after $5 million. However, I don’t appreciate the hint that what I’m doing is unambitious. While I welcome differing opinions, I don’t welcome disrespect.

    Cheers!

  59. DW,

    That’s a good question there regarding the car. I’ll probably amortize the income just like I amortized the expense. I can’t “put it against the cost” because the cost is already recorded and in the books. I’m thinking of selling it for what I paid, passing on some good karma. Not exactly a capitalist move, but I got a pretty good deal on it. Wouldn’t mind driving a car for free for a year. So if I sell it for $5,400 (what I paid), I’d record it as $600/mo in income over the rest of the year, spacing out the income so as to smooth out the budget.

    Great suggestion there regarding the last trip. We did that last time we went without a car and will do it again. We’ll have to load up on mostly heavy stuff like laundry detergent and things that take up a lot of room like toilet paper.

    Thanks for dropping by!

    Best wishes.

  60. I look forward to the day where my freedom from list is much longer and I no longer have to go to work, or spend time away from family, or honestly just always feel rushed. Its either rushing to the store, or to work, or back to the house because theres just not enough time in the day. The freedom to pursue whatever interests you at the time has got to be one of the best things in the world. Should I go ride a bike for a couple hours today? Should I go read and nap in the park?…

    Any thoughts on a scooter or just rent/borrow a car for the few absolutely need a car times?

  61. JC,

    I’m with you all the way. It’s a dream to be able to own your own time and live life on your terms. I can imagine it’d be particularly nice for you right now to just spend all this time with family with everything that’s going on. But the great news is that you’re getting there extremely quickly. 🙂

    Not sure about a scooter. It’d be nice to have. Might just get a bicycle, though, for quick trips up to the grocery store and what not. It’s not that far, but it’d be even quicker by bicycle. As far as a car goes, we’ll just rent one here and there. I know we’ll need one to drive up to the Clearwater airport to fly out to Omaha for the BRK meeting, but we generally don’t need a car for daily errands.

    Thanks for dropping by!

    Best wishes.

  62. Again a great post Jason ! This will remain in my mind for many years this free from free to. I love this philosophy, If only my wife would think like that !

    I am gonna call you someday the Sage of Sarasota.

    Keep on the good work !

  63. Well put Jason…Those desires are exactly what is holding most people back from achieving early Financial Independence. Without the desires, you live a simply and much cheaper lifestyle thus making it easier to for early FI.

    With that said, for some, it is much easier said than done. Not everyone, including myself, is willing to make the deep sacrifices that it takes. Our family is doing well, but if we were to make the deep sacrifices, I think we could reach FI much sooner than planned.

    Thanks for sharing. Best Wishes! AFFJ

  64. AFFJ,

    Agreed. It’s really not the stuff. Stuff is just stuff. Like the old saying about guns not killing people, but people killing people. It’s the desire for more stuff, even when one already has enough and more won’t deliver more happiness, that can lead to one’s downfall.

    As far as sacrifices go, it’s all relative. I view the true sacrifice as working at a job until 65 years old. Others view giving up on Item X or Y as the bigger sacrifice. It’s all perspective and priorities. And, obviously, one’s lifestyle and prior decisions have something to do with that. But if you can find a healthy balance both now and later, you’re in great shape. 🙂

    Thanks for the support!

    Best wishes.

  65. Aspenhawk,

    Sage of Sarasota. It’s got a nice ring to it, though I doubt I deserve it. Very kind of you. 🙂

    It’s tough to convince others of this sometimes. But sometimes the best way is to be the living example. Then maybe others will be trying to keep up with Aspenhawk rather than the Joneses.

    Cheers!

  66. Freedom to do whatever you choose is great! It’s also nice that I like to read books and enjoy low key activities. It’s a good fit for the frugal lifestyle. We are sharing one car and that’s pretty good for us. It’d be tough to get to school if we don’t have a car. We could take public transport, but it’d probably take over 45 minutes to get there. I also like the convenient of having a car. We don’t drive everyday and I think we have a good balance of using public transport vs driving.
    Cheers

  67. Dear Jason! You’ve just kicked it up a notch with the whole “freedom from car” thing! Kudos to you!

    I also enjoyed reading your rebuttals to Daniel’s comments. You guys have clearly different goals and priorities in life. I don’t think producing the amount of articles you write each month is unambitious – quite the opposite! you’ve been very prolific with your writing lately – much to the joy of your reader base 🙂

    While Daniel never disclosed what he does as a self-employed entrepreneur, I can’t help but be curious what type of business generates so much profit for him each month? I don’t think there is any right or wrong in how one pursues their dreams and goals, its just different strokes for different folks 🙂

    Keep up the good work Jason!
    Cheers,
    Alex

  68. Anha,

    Indeed. Some of us want freedom to travel, others want freedom to relax. All depends on the person. The key is that your actions are in line with those goals. 🙂

    Take care.

  69. Joe,

    I’m with you. If you’re an extrovert that enjoys hitting the bars every weekend, living frugally (or enjoying it) and achieving financial independence will probably be more difficult than it will be for guys like you and me. I guess I’m lucky in that I’ve never enjoyed high-profile, expensive activities.

    Sounds like you have a great mix there with the car and public transportation. Sharing one car really cuts down and that probably works well since you work from home. I hear Portland is pretty amazing for public transportation, so it might work out if you ever had to go without a car for any reason.

    Thanks for dropping by!

    Best wishes.

  70. AlexG,

    Thanks! I definitely don’t need to live without a car. It’s rather just a way to further increase the efficiency of my life, which is a byproduct of this journey. I’ve noticed that as I’ve amassed more wealth and passive income, my desire for the stuff it can buy has dwindled.

    Different strokes for different folks is right. There’s no right or wrong way to approach life. Some want $5 million. Others want $500k. Really depends on the individual. But to blast someone else’s goals as “unambitious” is disrespectful, in my view, and won’t be tolerated. The whole reason I share everything is to show that it isn’t necessary to have millions of dollars to become financially independent. And those who claim it’s easy to amass such wealth by 40 years old are living in a very different reality from the one that I (and most other people I know and converse with) am living in. Again, really all depends on the individual, but one way isn’t more ambitious than the other. Those who think that are still tying their self worth to their net worth, which is a real shame.

    Appreciate all the support. I’m glad you appreciate the content. It’s certainly not easy to write as much as I do, even for someone who enjoys writing.

    Best wishes!

  71. I guess there is an upside to my unexplained lifelong phobia of driving. I plan to attain financial freedom at the age of 35 (I started a year ago at 28) and can’t imagine doing it having a major expense like a car. My family has always gotten on my case about not driving, but it’s something that I never had an interest in or needed to do. And that was before I decided that I wanted to achieve financial freedom early in life. A car would have been great for me………….if I wanted to work until I’m 65 like everyone else.

  72. I found Daniel’s comments humorous (in a good way). No disrespect to Daniel but I feel like Jason is going to become the millionaire next door or like that janitor that was worth $8 million dollars. Jason seems to be happy in his own way and we need to respect that.

    I recommend this article, “If money doesn’t make you happy, then you probably aren’t spending it right” from Journal of Consumer Psychology, March 2011.

    http://www.wjh.harvard.edu/~dtg/DUNN%20GILBERT%20&%20WILSON%20%282011%29.pdf

    The article says that experiences not material things make people happier and that money buys
    happiness, but it buys less than most people think.

    There was also an article from awhile back that says people reach a happiness peak once they earn $75,000 and after that more money doesn’t necessarily make them happier or improve their sense of living that much.

    http://blogs.wsj.com/wealth/2010/09/07/the-perfect-salary-for-happiness-75000-a-year/

    There is a show called “Penn & Teller” a show that aired on Showtime awhile ago by atheists magicians and skeptics called “Penn & Teller BS” and while I’m not an atheist I did watch the series. They had an episode called “The best is bs” it was all about how the pursuit of the best is one of the worst waste of time there is or in other words the pursuit of materialism.

    To their credit they had experts talking what is the best, for whom, for what, and that people can drive themselves crazy in this pursuit. And that in many cases there is no best. They even did an experiment of how “the best” can be all in your head. In this episode the show had people bring a friend to a fancy restaurant. One friend knew that it was an experiment and the other friend didn’t. They did this with a few set of friends.

    They took their prop guy, gave him $44 and stuck him in an alley behind the restaurant. Their prop guy used the cheapest food he could find. The show also had an actor act as the waiter, who would talk up the food to the clueless friends. They used a range of people, some were young and others were in their 30’s and 40’s.

    Most of the friends when asked how the food was, said it was great, except for one guy. At one point the waiter told someone if he wanted to smell the cork, lol, and that a $1.99 was the most expensive wine in their restaurant and the friends who were clueless drank the wine and seemed to like it.

    Then the waiter told them that the beef filet cows were massaged daily from birth, but it was really cheap beef and that their potatoes were hydroponically grown by graduate students in reality they were dried potato flakes from a box. And discount whip & chocolate shavings were passed off as Belgian white chocolate mousse that was whipped 150 strokes.

    This episode is on youtube on 3 separate videos for free. They do use cursing and the show is crude at times. FYI if you choose to watch the episode. I just gave you the family friendly version. But yea the point of that whole experiment was that the best is often in the mind. I don’t think they’re saying there’s anything wrong with fine dining, I’ve eaten at my share of fine dining restaurants.

    I also don’t think there is anything wrong with wanting to live on 18k/year.

    If you have no debt, have an emergency fund including one that covers your health care deductible, have a roof over your head, have AC/Heating available, your basic appliances (oven, fridge, dishwasher, washer, dryer), basic dinnerware and cookware, basic furniture (bed, sofa, recliners, an ottoman, TV, TV stand, a laptop), basic towels and linens, enough clothes to where you can wash them without them being worn out too fast, oh and if you have your health and loved ones then anything else in addition to that would be a luxury or a toy.

    At that point you have “first world problems” and are considered to be rich compared to most of the world.

  73. I can see the merits of both your comments and I guess it boils down to the keyword in personal finance which is ‘personal.’ Everyone finds their own path in life whether working 9 to 5, starting their own biz, saving or spending, investing for the future or not. Even within our dividend community we all share a common goal but take different paths to get there as evident by our differing stock portfolios and sector weightings. As you mentioned some like index funds, some individual stocks. The key to remember is that this is all a personal quest that in reality only needs to make the individual person happy and content and not others.

  74. Joey,

    I get the appeal of cars. And in many areas of the country, they’re necessary. But they are no doubt a drain on the cash. And if one can avoid one, I think they’ll not only find that they’re richer without it, but happier as well. I kind of miss the car-free (and carefree) lifestyle.

    You’re not alone in your phobia. Claudia insists on not driving…anywhere…ever. She hates it. Takes the bus even while the car sits in the parking spot. So there’s just really no reason to keep it.

    Not having a car will surely propel you to FI quicker. Not only that, but you’ll need less passive income to sustain yourself permanently if you never need a car. Makes a big difference in the time line. 🙂

    Best regards!

  75. Anonymous,

    Right. Different approaches to life. None are inherently right or wrong, as long as you’re not hurting anyone else. However, I do draw the line at being disrespectful.

    I linked out to similar research. The research has been done ad nauseam and it definitely indicates that there is not a 1:1 correlation between money and happiness. And there’s marginal utility there as well. It’s like the old ice cream example. First bowl tastes great. Second bowl still probably tastes good. Third bowl not so much. And the fourth bowl will probably make you sick. If you believe in hedonic adaptation (which I do and the research does as well), then more money indeed will not buy more happiness because your baseline is intrinsic. You can bounce higher or lower from that baseline for stretches at a time, but $5 million won’t buy you ten times the happiness that $500,000 will. The fact that people still come by here and drop these comments indicates to me they either haven’t read the content or they’re still stuck in the cave. Doesn’t matter to me either way.

    I’ve heard about those shows from Penn & Teller. I think they did one on water a while back where they tricked people into thinking they were drinking expensive filtered water when it was really tap water – and the people went on and on about how great the water was. (I think they did something on organic food as well, not sure.) It’s all perception. If you think your life sucks, it will suck. Doesn’t matter how much money you have. Approach things with a positive attitude and the proper perspective, and it takes very little money to make you happy.

    Cheers!

  76. Your freedom posts inspire me very much Jason! I’m really in the “get freedom from” process this year, discovering a minimalist side of my personality. Don’t think I’ll ever be very frugal, but I don’t feel the need to prove myself or my actions to others as I used to. I simply desire freedom to do whatever I want… so yeah, another great piece you wrote!

  77. DivHut,

    It seems that Daniel doesn’t bother to read the content here. In my last article I wrote:

    “I’ve shied away from arguments more and more in regards to frugality, financial independence, investing, and saving, as it’s almost impossible to say that one strategy is somehow perfect for everyone. Personal finance is personal for reason. So if someone disagrees with what I’m doing, that’s fantastic. I encourage everyone to find what’s best for them.”

    So I don’t know why he thinks I’m going to go back and forth with someone who has a totally different view on money and life. I’m not here to sell anyone on anything. I wish him luck with his quest to $5 million. But I don’t need $5 million to be happy, thankfully.

    And, of course, I just wrote an article very recently about not comparing yourself to others. Some people just don’t get it. 🙂

    Thanks for dropping by!

    Best regards.

  78. Mike,

    Sounds like you’re hitting a new groove over there. Wish you much luck with it. I know that I’ve found that the less stuff I have the more happy I am. Now, I’m not saying I’m interested in living in a tent, but there’s also a level of superfluous consumerism that can be completely eliminated and actually lead to, surprisingly, more happiness. This might not work for everyone and that’s okay. But it sure works for me. 🙂

    Hope you find your balance and it works out great for you!

    Best regards.

  79. Having the courage in one’s own vision of the life they want and acting towards building it is the hardest thing for most people. Most people are prone to just follow what society says they need to do/be. Herd mentality/behaviour is utterly fascinating.

  80. Steve,

    Thanks for dropping by!

    It absolutely takes courage to swim against the current and do what makes you happy, rather than following along with society. But the rewards for those courageous enough to take that endeavor on are wonderful. 🙂

    Cheers.

  81. All the things you are free from and I am not (yet) is making me envious and pushing me to earn and save more! I currently do not own a car, but as I live in NYC I can still get around very easily. In rural areas, having a car is a must. But if you live in the city you do not need one. I am not a city boy, so eventually I plan on moving to a rural or suburban area. I will definitely need a car as I plan to eventually get into real estate, and it makes visiting with friends and families well worth the hassle of owning a car. But as long as you can get around well without one, all the power to you!

  82. Nice Mantra, get a bike with a rear rack and forgo the scooter. It will keep you fit (or more fit) and happy. If it’s raining you can stay home or uber… Not like you have to clock in at a certain time these days. I need a car still for work. I wish I could get rid of mine though.

  83. FF,

    I like cities, but not massive cities like NYC. Seems a bit out of control to me. But I like smaller cities where I get most of the amenities without all of the headaches/drawbacks. I’m sure it’s incredibly exciting up there, though. 🙂

    We live in a pretty small city, but, like most small cities of its size, it provides a bus service. It’s not great and won’t get you everywhere you want to go, and it only runs until about 10:30 at night, but it’s better than walking. And it’s surely a lot cheaper/more interesting than driving. So we’ll see how it goes.

    Thanks for dropping in!

    Cheers.

  84. Daniel,

    Great suggestion there. I might just end up skipping the scooter. A bike would be a nice addition, though, due to the ability to make a quick trip up to the grocery store, rather than something that’s planned for that once-a-week trip. We’ll see. 🙂

    Maybe once you no longer need that job you, too, can get rid of the steel box. That’s one great potential side effect of financial independence. You might be budgeting for a car, but might also realize you don’t need it once you get there. One has to kind of design their lifestyle around it, though.

    Cheers!

  85. DIV,

    I really enjoy reading your BLOG posts, the content is very genuine and the full disclosure into your life, finances and frugal ways is inspiring.

    I too am working toward financial independance and reading your work has inspired me to make Income/Balance/Cashflow statements for my own financial situatino, maybe if I am brave enough I will post them in here some day. I really thought I was frugal before reading your monthly cashflow’s and your ability to save greater than 50% of your take home earnings consitantly, impressive. I have been purchasing several dividend stocks also, but the bulk of my meaningful moves toward my passive income surpassing my monthly expenses has been in real estate purchasing rentals. Different vehicle’s but same destination, I would like to be financially independant at 44 years old or 14 years from now, thanks for helping me get there.

  86. Owning a car is costly indeed.. what is most costly – is not planning ahead. Hard to do, but i started by saving $25 a wk and sticking it into a high interest saving account, and alas, still with my 2000 toyota corolla, i now have $19K towards a new car. The darn darn car depreciates so much as soon as you drive it off the lot, better to pay in FULL cash and be done with it.. why not pay yourself instead of the bank or car dealer with their Loan rates – loan it to yourself ahead of time – now that my car has over 240,000kms on it, trying to see how far i can drive it before I REALLY need that new car .. the more i go – the harder it is to let the ole one go..

  87. Hi,

    As someone Native to the U.S. but lived in Rome for a long time I can tell you that you addressed your own concern. San Francisco, NYC, Chicago, Philadelphia have excellent public transportation, near comparable to European cities. However, that transportation infrastructure exists solely due to the extremely dense populations such as my hometown of Rome Italy. Subsequently, those dense populations put extreme upwards pressure on goods and services from Housing to groceries. In outskirt European farm towns, the public transportation is relatively insufficient, but there is downwards price pressure since there is a strong desire to live in the inner cities in Europe. Public transportation, in my mind, is a double edged sword/catch-22.

  88. nickfitz,

    Thanks so much for the kind words. Really appreciate the readership and support! 🙂

    I wish you much, much luck in your quest for financial independence. Many roads lead to Rome, and the same is true for financial independence. Hopefully, the combination of real estate and stocks gets you where you want to be.

    Best regards!

  89. john,

    Sounds like you’re in great shape there. Not only do you have $19k to replace your car, but you’re already driving one of the best cars made. Hopefully, that thing keeps on running for you for a while. 🙂

    Thanks for sharing!

    Cheers.

  90. Matt,

    Right. You’ll notice that housing is generally more expensive in those areas. But that’s because they’re more desirable areas, not just due to the fact that they offer public transportation. Public transportation is an effect of so many people living there.

    That said, one might do better in a suburb or something with cheaper housing but more costs allocated to a car/transportation, but you’d have to consider how much money you’ll make in income out there as well as what kind of lifestyle you want. Comparing living in a house one hour outside of a city center to living in the city center is an apples and oranges comparison.

    It seems the best one can do is live in a medium-sized city (like me) and perhaps get the best of both worlds. Get a decent income, housing that isn’t too expensive, a city-like lifestyle with the amenities, and public transportation that’s robust enough for your needs. Or one could commit geographical arbitrage by living in an expensive area for a while, make a big income, rent cheaply, save all your money, and then move to a cheaper, rural area down the road.

    Thanks for stopping by!

    Best regards.

  91. Yes I’ve also seen those episodes of Penn & Teller. Yes they also did one on organic food. Actually other studies have been done that organic food isn’t actually better for you. One was done by Stanford.

    http://med.stanford.edu/news/all-news/2012/09/little-evidence-of-health-benefits-from-organic-foods-study-finds.html

    I was on the organic bandwagon until I read this. And yes the ice cream example was used in my economics class by my teacher, its called “diminishing returns.” But back to your original post, my freedom from is “office space” type of work so I can run my life and be the CEO of my own life. Yea!

  92. Anoymous,

    Thanks for sharing that. That goes into my bookmarks. I’ve always maintained that “organic” is just a fancy label that taxes the ignorant. If someone feels better off eating organic food, more power to them. If you can afford it or it tastes better to you (likely all in your mind), then by all means. But I have grown tired of the people who claim that my health will somehow suffer because I don’t buy organic food.

    Appreciate it. Glad to have read that! 🙂

    Best wishes.

  93. No problem. There is such a safety hysteria around organic food. “Eat organic or you’ll be sorry!” Another thing that bothers me is the snobbish attitude by *some* in the health community like they think those whom don’t buy organic are harming the environment.

    I think its more important to add more fruits and veggies to a normal palate and be more active. I think inactivity is what we truly need to worry about as a society, so many jobs these days are sedentary and many of us are obese. I don’t think our bodies were meant to be sedentary, I think we were meant to sit, stand, walk, run and be generally active throughout the day and do several activities not one activity (sitting down) for 7-8 hours.

    Also what is healthy changes throughout the times, I read that back in the 60’s, doctors would tell patients to smoke because they thought it was healthy.

    CR (Consumer Reports) also published an expose on gluten-free foods on Jan. 2015, and said that gluten-free foods were more fattening, contain arsenic, people might gain more weight eating them and are more costly.

    They said people shouldn’t eat them unless they’re the few percentage of Americans who truly have to eat gluten-free. Apparently a lot of people are eating gluten-free when they don’t need to because they believe it’s healthier.

    http://www.consumerreports.org/cro/magazine/2015/01/will-a-gluten-free-diet-really-make-you-healthier/index.htm

    Okay I won’t be posting anymore food links as I realize this isn’t a food blog. =)

  94. Anonymous,

    Indeed. What’s healthy today will change tomorrow. So on and so forth.

    I definitely agree about activity. People too often place way too much importance on their diet and then totally forget about activity and everything else. I’ve always maintained that stress, exercise, and genetics have just as much or more impact on your overall health as your diet. You can eat as amazing as you want, but if you have poor genetics, no exercise, and you’re stressed out all the time, your life expectancy is likely going to take a severe hit, as is your quality of life. Just one of those things.

    Thanks for sharing!

    Best regards.

  95. Jason, very timely article. I have been going back and forth on whether to sell my car or not for a few months.

    I can walk to work which is the primary reason I have been thinking about it (but Midwest winters literally require me to throw sweatpants over my dress pants in order to stay warm). I have about a 1 mile walk to work depending on the route I take, and a 1.2 mile walk to the nearest grocery store (although it’s an expensive one). I live in a very spread out city, where the big box grocery store I currently go to requires me to get on the freeway and drive 10 minutes. The only reason I can walk to work is because I specifically chose to look for homes near my employer.

    To be honest, I’m one of the only people I know in this city with a commute of less than 10 minutes, and that’s by car.

    There is a local bus system, but no system for commuting to the surrounding cities/towns. Additionally, my family lives 100+ miles away and most of my friends are a 10 minute drive away.

    Many trade-offs to consider, which is why I haven’t pulled the trigger. It makes sense for me on a quantitative level for me, but being able to hang out with friends, drive to the state parks (no Monday beach walks for me!), and visiting family is something I haven’t put a value on.

    Keep us up to date with how it goes, I’d definitely be interested!

  96. RedtoRiches,

    Sounds like you’re in a great spot over there. Maybe you don’t need to get rid of it if it costs you little to keep it? Maybe just keep it around and drive it only when necessary? We don’t live in a city that’s anything close to robust in terms of public transportation, but we can make do. And there is always rental agencies for those rare occasions when a car is absolutely necessary.

    Best of luck figuring out what works best for you and your situation. I can tell you that I was much more excited to get rid of a car early on in my journey as I’ve always felt that extreme frugality was a lot more useful early on to get the snowball rolling. It’s now more of a lifestyle choice than a monetary choice, as I alluded to in the post.

    Thanks for dropping by!

    Best regards.

  97. If only i wasn’t a car enthusiast!! It is one of my passions that brings happiness to my life, so unfortunately i cannot see myself ever selling my car, but i respect you for being able to do it! I have certainly wasted my fair share in the past on cars, and admit that i would have an amazing portfolio had i spend the money i wasted properly haha! the sale of the Toyota should certainly help push you over the 200k mark a bit quicker. If i were living in a warm beach climate like yours, i would probably just have a cheap motorcycle and sell my car. Still alot of fun, and very cheap to maintain and insure! Good luck man, you are doing great.

  98. Josh,

    I hear you, bud. I used to love cars. I’ve had quite a few over my life ranging from classic muscle cars to new sports cars. But somewhere in there I realized that I’d rather have freedom than a nice ride. If the car brings about lasting joy to your life, then it’s not a waste of money. Money has utility. I’m certainly not a fan of the idea of building wealth just to build it. There is a point behind it. I may spend a good chunk of mine on freedom/time. And you may spend a good chunk on cars. As long as we’re both happy, that’s what really matters. 🙂

    Up in Michigan, a car is necessary. Less so here in Florida, but we’re not exactly in some kind of mecca for car-free living. That said, it’s a lot easier to get by without a car here due to the climate. A nice scooter is really all you need if you don’t want to rely on the bus or get somewhere the bus doesn’t go.

    Thanks for stopping by!

    Best wishes.

  99. I just have to chime in as this post is so in line with my own journey right now and this really spoke to me. I got into a good bit of credit card debt in college and also took on the student loan debt burden. Yet I never fully understood how much that would limit me, and honestly thought debt was just a normal thing everyone has…a way of life.

    It wasn’t until mid last year that I really started shifting my mentality. I’ve been shedding all of the excess out of my life and honestly feel like a weight is being lifted off of my shoulders. I’m out of cc debt and am on track to have the remainder of my loan paid off by the end of the year. I started an emergency fund and opened a Roth IRA. And although I never thought those types of things would matter to me, the secure feeling they give me actually brings me a lot of joy.

    I used to be excited about the possibility of all the things I could buy with that free money, but now I get excited by challenging myself to see how much of that money I can save instead. I’ve realized that I don’t need the latest gadgets and appliances and have really started questioning my wants when they arise. It’s been amazing to see the shift in myself…I feel lighter and happier having let go of all the unnecessary junk.

    Freedom from all of the unnecessary junk has awarded me the freedom to focus on what really truly matters to me. And most of those things that truly matter don’t involve money at all. Financial freedom is becoming more and more important to me, and money IS still necessary, but by learning to live on less I’ve started to be a lot smarter about where I put my money each month. And so far, that’s been very rewarding. I’m looking forward to getting my negative net worth into the positive in the upcoming year. Thanks for this thought provoking and well written post!

  100. Stephanie,

    Thanks so much for sharing that. You and I are on the same exact page. 🙂

    “And although I never thought those types of things would matter to me, the secure feeling they give me actually brings me a lot of joy.”

    I think that sums it up nicely. People think of the stuff that money can buy as the only way that money can buy happiness. But money can buy happiness in the security and freedom it can provide. Money itself can buy happiness, and not just through the exchange of it for objects. Once that mentality shift happens, life changes dramatically. It’s really a whole new world out there.

    Glad you’ve discovered a new path. I’ve found it to provide far, far more happiness. And not just more happiness, but lasting happiness.

    Thanks for sharing!

    Best wishes.

  101. I am currently shackled by the man so not much freedom (yet). One day with encouragement from all of you I will get to FI and pass it along to my kids. I can’t wait to get out of the office away from all of the politics. Regarding cars, I see guys riding their bikes and walking to the bus stop in several feet of snow risking getting hit by cars (they are walking in the street.) That is when I am thankful for the paid off car. Other than that my wife and I are considering going down to just her mini-van. Good post Jason.

  102. DFG,

    You’re well on your way over there. Freedom is out there. We just have to work hard and grab it. 🙂

    I once actually read that biking is far safer than driving a car. It was based on accident rates and what not. Of course, far less people ride bikes than drive cars, but your overall odds of getting hurt on a bike were less than driving a car, if I’m not mistaken. But the car-free lifestyle isn’t for everyone. In some areas of the country, it’s not possible. And I’ve remarked quite a few times now that one of the big reasons I moved to Florida was to get by easier without a car, as it’s not fun to wait for a bus in single-degree weather with six inches of snow outside (I’ve done it).

    Thanks for dropping by!

    Best regards.

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