Do you have a burning desire to leave your job? I did.
As a young person stepping into working life, I got the itch to quit in just 3 short years. It just did not feel right to me, and I definitely could NOT imagine doing it for another 30 years.
Eventually, figured out an exit plan and executed that plan over a 3 year period. My wife and I both left our banking jobs on Mar 26, 2021. We went from earning over a quarter million in salaries per year to zero.
Despite not working for more than a year, today our assets continue to grow at a faster rate than we can spend.
What does it mean to be FI?
To be FI is to cover your cost of living from your assets. This is in contrast to exchanging your time for money. Some people will describe this as “passive income” or “having money work for you while you sleep”.
While the concept of FI is relatively new, the idea behind is not. There was always a small group of people who had found FI through the ages, “The Capitalists”.
The undeniable fact is that we live in a capitalistic society. This is true when either you may or may not agree with the merits of capitalism. Most people have a ton of baggage around this idea.
Watch your mind react as you see the below prompts:
- The 1%
- The Tech CEOs — Elon, Zuck and Bezos
- Bankers and stockbrokers on Wall Street
- Hollywood actors, athletic superstars, world-class musicians
How about a little closer to earth:
- An investor with a sizeable stock portfolio
- A Landlord operating multiple rental properties
- A small business owner with a consistent revenue stream
- An online content producer with a significant following
Did seeing some of these words produce an emotion in you? Was it respect or jealousy? Whether you despise them or admire them is irrelevant. Don’t be distracted from the fact that capitalism is the context that we find ourselves in. Direct your attention to the hypothesis that many of these people did not really have things figured out at one point. First, they understood, and then they changed.
Independent of your attitude towards capitalism, it is important to acknowledge that this is the prevailing and governing idea that shapes your environment.
While money isn’t all there is to life, most will agree that it is an important aspect of life. I wanted to solve the domain of money in my life to its deep roots for once. After all, there are so many other pressing issues that are more important than money.
These two first steps to achieving FI are of the highest importance.
- Learn about capitalism. Get clear on what it is and how it works.
- Systematically investigate how you can thrive within the bounds of capitalistic rules
I would suggest that having these two ideas clearly imprinted in your mind is to be awakened to FI. Society at large does not want you to be awake. They want you to stay within expectations. They want you to work hard, depend on a paycheck, and consume frivolously. These are the behaviours that capitalism depends on for it to continue.
A huge part of the journey to FI happens in your mind. It requires updating the old programming that runs your life’s operating system. It requires you to let go of the identity that you’ve been holding on to and reach deeper for something more honest.
What is expected of you from society should not concern you. The question is what do you want? Are you ready to wake up?
The average person takes 30 years to achieve financial independence
The harsh truth is that most people won’t ever reach FI in their lifetime. Among those who do, on average it takes 30 years to reach FI. This is a testament to the fact that achieving FI is uncommon, and that it may not be that easy.
But it isn’t impossible or extremely difficult to achieve. It is quite the contrary! It requires you to understand and commit to a set of principles and consistently follow through on these ideas.
When I woke up to FI, I had set a goal to achieve FI in 7 years. (see here) I was 33 years old, and I wanted to be FI before 40. (no specific meaning to 40 other than the fact it was a nice round number)
I had enough conviction in me to know that I can execute against my goals. And I did. I reached my goal in half of the time that I had set out. It took me roughly 3 years to reach FI from the wake-up call.
Having scanned the FI scene, I realized that this type of “I had set out to achieve it in 10 years but happened in 5 years” is a common phenomenon in the FI circles. I concluded that 5 years is sufficient enough of a timeline for massive changes to take place.
So what’s the secret?
Some think that there is a hidden secret to wealth. This secret information found by the lucky few, analogous to seeing the set of numbers that will appear on the winning lottery tickets. But that is an illusion.
There are no secrets. Like most worthwhile things in life, the principles are rather simple but the challenge lies in the inconsistent execution. Also, you have heard of them. You may not have paid attention to them, but these ideas will not be new.
When I was a kid, I knew what it would take to be really good at playing the Piano. I’d just have to practice. That’s it. It was simple, and it was clear to me. But I didn’t do it. I didn’t prioritize it, and I wasn’t motivated by the idea that one day I will be able to play the Piano like a jazz musician.
The choice is yours. Are you motivated to achieve FI? Will you change your life in a way that is more consistent with the renewed priorities?
What you can do today
But for today, answer these two questions:
- Why do you want Financial Independence?
- How important is it for you to achieve Financial Independence?
Jot them down on a piece of paper, or send yourself an email.
Heck, send me an email. Having an accountable partner (another soul who knows your deep commitments) makes you… accountable.
Get ready to see your life change fast.
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Over the next several posts, I am going to explore with you my curation of core ideas that helped me reach my FI goals.
Thanks for reading!
