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Daily Writing Habit
I’ve promised myself for so long now that I’m going to make a habit of writing daily.
What’s important is to show up every day.
Since I use the Pomodoro-technique, I’m going to set my goal to 25 minutes of daily writing (I use this Pomodoro-timer – and yes, that’s why it’s 25 minutes).
I know, this doesn’t sound like much, but for me to start I have to set the bar low.
I’ve written weekly since November 2018, but more than often I procrastinate and delay my essays until Sunday morning.
Forcing myself to publish on time. This has worked well, but the editing part has more than often been absent.
I guess if I commit to writing a minimum of 25 minutes daily, I’ll most likely enjoy it, and probably I’d like to continue for longer as well. 25 minutes x 7 days = 2 hours and 55 minutes. Not much time at all, but it’s a start.
Would love to hear from you on how much you’re writing weekly?
Planning For Financial Independence
The benefits I see from my writing is that I plan better, I make better decisions, I learn more and it pushes me to reach my goals much faster.
When I started this blog I had much smaller goals compared to what I have now. Writing has helped me reflect and made me believe in myself. There’s actually a lot more things you’re able to do if you just believe in it.
In January 2018 my goal was to have $300,000 in index funds by the year 2028 starting from $0.
It’s 2020 now and I’m already at $363,000 in index funds.
I smashed my small goal in only 2,5 years. It’s funny because somehow I don’t understand how I got there so fast.
After I made the plan in 2018, I started over again and made a new plan. This time I made a 15-year plan to reach $600,000 instead of $300K.
Some months later I figured out that I could do this in a much shorter amount of time. A new plan was created, I was going to reach $600,000 in 8 years.
As I learned more about financial independence, talked to new people, and increased my salary, I understood that I was going to reach my goal in 5 years. Once again I pushed myself and crushed my initial goals.
In November 2019 I made a new plan where I laid out my detailed plan on how to reach financial independence in only 2 years.
2020 came, and due to COVID-19 and working mostly from home I started to create e-books which I started to sell on Gumroad (highly recommend you to do the same).
So on top of my 2-year plan, I also started to earn income online from doing work that I love (teaching people about FI and Twitter Growth). This has absolutely not been passive income, it actually feels like I got a second job sometimes. Anyway, I did some new calculations and figured out that financial independence is only 18 months away.
While financial independence used to be a far-off dream, I’m now proud to say that I know I’ll reach it really soon.
If I stopped saving completely now, never inserting any money again to my stock account, I would still reach FI.
My $363.000 would turn into $500,000 with only a 38% increase from where my stocks are today.
While this won’t happen in 1 year, it certainly will over time. I don’t plan to withdraw my index funds when I’m FI in some months.
I’m looking more into creating a new job for myself without the risk of having no money if I fail. My index funds are my safety net.
What If I Just Stayed In My Job And Kept Investing 70-80% Of My Salary Every Month For 5, 10 Or 20 Years?
This is just a little thought experiment. And again, I, unfortunately, don’t think non-linear here.
Maybe the end result will be much better? What I planned below shows only what’s possible from my current situation. If I just keep it up and scale there’s a possibility that I will blow my prognosis out of the water.
In 5 years I could have $1,06 M invested in the stock market.
To me, this number is quite insane. 37 years old with such a large number. If I included my fiancee, our number would’ve been even higher.
What about in 10 years? $2,2M invested in the stock market.
I don’t know what to say.
It’s just…too much?
After 20 years I’ll sit out with $7,2 M in my index fund portfolio.
What Will I Sacrifice If I Continue To Work For 5, 10 Or 20 More Years?
We all think our lives are normal. We all think that the way we live, the things we do, and the society that we have is the right version of the life.
Not everyone wakes up at 6 AM and does a 40-hour workweek. Just the mere thought of doing that is a complete joke to many people.
We live in a wonderful world, wherefrom the youngest of ages we are conditioned into being model citizens. Our lives are paved out for us before we even hit puberty.
I didn’t want a 9-5 workday. I didn’t want to apply for a job after graduation. I did it because I thought I had to. You’ll probably do the same.
I think that if I continue doing my job for 20 years, I’ll lose something inside of me. I don’t know how to describe it, but “wasted potential” is probably the words I’m looking for.
I believe that we all want to achieve something bigger in our life.
Most people don’t have time to figure out what they really want because of their busy lifestyle.
When you start to pursue the life you want, you connect with people who are already spending their lives exactly like you want to. Those moments stick with you. It’s like, “Shit! Look at all these people living the exact life I never thought was possible!”
For me, this connection was established through Twitter. I’ve met some great people already, and there are tons of people I’d like to meet.
To be free from work I need to reach financial independence. Then you no longer need an alarm clock to get you out of bed. You don’t need any more inspirational quotes on Facebook.
When you’re down on the path to FI, you’ve finally realized that if you just take the tiny step outside your comfort zone, it’s possible to spend your life just doing what you love and life is suddenly exciting again. That’s a part of finding yourself.
Do you need financial independence to find yourself? Probably not. But amongst all the noise of your daily life, it is hard to really give yourself the space to do so.
What I sacrifice by working for financial independence
I’ll go into the sacrifices I’ve made on my path to financial independence.
But let me change the view on what’s a sacrifice is first. Did you know that if you’re 40 years old, you only have approx. 336.000 hours left to live on this planet?
Do you really want to sacrifice 1/3 of that time to a job you don’t even like? And don’t forget that you sleep 1/3 of the time as well, meaning that you only got 112.000 hours left doing what you like.
I haven’t even mentioned commuting, getting ready for work, etc. that as well eats of your time, but it’s easy to see that we don’t have much time to what we really want in life, right?
To me, this is the biggest sacrifice at all. Living an unfulfilled life.
That’s why I sacrifice to live on $1,500 – $2,000 a month now and save 70% of my income every month (this is for me alone).
To me, this doesn’t feel like a sacrifice at all.
I do all the things that I want to do today (besides working 9 – 5).
The only thing I want is more time.
And that’s the reason I pursue financial independence.
Have questions, comments, or suggestions? I would love to help you with your FI-journey.