Friday, June 12, 2015

Retirement 2

In my last post, I wrote that there are two schools of thought to retirement:

  • 'Extreme savings' : You scrimp and save so that you can retire early
  • 'Work to enjoy life' : You continue working and have a late retirement to enjoy a comfortable lifestyle
 After thinking about it, perhaps there is a third school of though to reconcile both and have the best of both worlds. That is, the 'financial freedom' school of thought:

  • 'Financial freedom' : You work to achieve financial freedom. This means you have earned enough to maintain your current lifestyle, and you are able to quit if and when you want to. You don't necessarily have to retire from work, but the point is you are no longer working for the money.
I think this is what I should aim for! Financial freedom!

So now, a quick analysis on how far I am from financial freedom:

Monthly expenditures (this includes everything from groceries to monthly mortgage to child education expenses and insurance policies) = $4100

Monthly passive income (from stocks, bonds, savings deposits, fixed deposits etc.) = $391

Hmm...well...seems I have some way to go...

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