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Endurance & Financial Independence
I want to talk a little bit about endurance.
I’ve noticed recently that activities I like doing often include some form of endurance.
Financial independence is a great example. The goal of FI is for most people a long one. You need to save and invest money for 5 – 30 years before you can declare yourself financially independent.
That’s why so few people are serious about aiming for a goal like that. If I were to guess I think that there’s only 1-2% of the population in the Western world that actually makes it to financial independence.
For you to be FI you need to have endurance. You need to show up month after month. You need to save as much as you can every single month for an immensely long period of time. Most people can’t do that.
People will argue that FI is simply not attainable for them, but I believe that everyone can reach financial independence. It’s for sure easier with a high income, but everybody can reach FI if they just stay in the game long enough. The reason most people won’t reach FI is due to a lack of willpower (endurance).
Think of financial independence as a marathon. You start out without any training experience. The first thing you should do is make a plan. You need a plan for how you can get from $0 to your financial independence number.
I’ve coached people who think the quest for financial independence is very motivating in the beginning, but after some months/years, their motivation tends to dab off. They stop saving and investing because the game is so long. They can’t see the finish line. My goal as a coach is to lead them back on track, to find motivation in the daily pursuit of FI.
Look at the figure above. It can be extremely frustrating to see that a savings rate of 20% means that your journey to financial independence would take 30 years.
Luckily for me, I’ve always been frugal. This has given me an advantage that I’m sure will pay off later!
The Next Step After Financial Independence
For the first 9 months of the year, I’ve spent only $11,351. That’s an average of $1,261 per month.
Sometimes I don’t believe the number myself. How is it possible to spend that little?
I’m in route to spend $15K for the year in total, which I’m extremely proud of. Others may say I’m extreme, but the truth is that I still enjoy the lifestyle I had during my studies. Why should I upgrade it? Who am I going to impress?
I think this has a lot to do with my endurance-mindset as well.
I’m visualizing how my life will be further into the future, and what I see always motivates me to continue.
I’m thinking so much about my next step after FI.
Should I do a business venture? Read, write & tweet? Go all-in on training for a marathon? Continue working longer for extra safety? Starting a consulting firm focusing on engineering? Become a full-time coach in financial independence, Twitter & online sales?
If you got any advice for me, I’d love to hear them!