Ultimately, what do you want once we achieve financial freedom?

Financial Freedom + Time Freedom = Ability to do the things you love

Hence in this article I’d like to address these 3 variables; financial freedom, time freedom, followed by doing the things you love.

I realise that when it becomes to financial freedom, many a times it’s a often a state of mind. While there’s some number which you definitely need to hit so that you can sustain your lifestyle, after so many years of chasing after that goal or number, many of us got greedy or become more careful, always thinking that it’s not enough. There’s always the what if questions. To simply put, if you are able to draw down 3.5% of your portfolio annually to sustain your desired lifestyle, I think you have achieved financial freedom. If you done many researches, many experts will claim 3%-4%, and I’m not expert, I just use my simple logic mind and choose the in between; 3.5%. Besides, come and think about it, when you retire, your lifestyle isn’t going to be a linear straight constant line, highly likely it will drop linearly over time. I view retirement into 3 phases; go go years, slow go years, and lastly no go years. Hence your expenses, excluding inflation, should go down over the years. You eventually will get sick of keep on going for holiday man! Hence I feel a 3.5% withdrawal rate is a safe number. Therefore, if you have $1m portfolio, and $35,000 a year can fulfil your desired lifestyle, I think you have achieved financial freedom. Of course, if you have young kids like me, do cater extra for their education and growing up needs.

Next let’s look at time freedom. I know of many friends who have achieved financial freedom, but they have no time freedom. They are still stuck in a system. As they climbed up the ladders, their time is consumed by others. Why didn’t they just give up totally then since they have achieved financial freedom? You see, after decades of climbing up the ladders and gained recognition for the achievements you made in your career, you have gotten used to people calling you bosses, or I would say, emotionally attached to the career you have been in. Well, there’s nothing wrong with that, if you truly enjoy what you are doing. Time freedom is the most difficult part to achieve, because it takes guts to give up on a career or a business which have helped you achieve that time freedom. Personally, I feel that one can make a transition for this phase. Start to slow down on your career or pass the baton to someone else. It takes time. 1-3 years at least. Let someone take the limelight instead as you slowly walk out of the stage. Age gracefully I’d say. Well, it’s easier said than done, but once you realise that you only have 24 hours, and there are even more important things ahead of you to accomplish, your decision making process will be made easier.

When one achieve the freedom in both areas, the next time you really want to think about is, how are you going to spend your 24 hours next? If you achieve that freedom by 50, then you gotta think of how to spend your time in the next 30 years at least?

I asked many, and in general, the answer they gave was brief. I’m short, they don’t know. That’s why I see many retiree go back to work just to kill time. Many said, I’d want to add value to the society. I think many of them felt that they weren’t adding any value to the community anymore, and felt misplaced.

What’s doing the things you love means then?

After some deep searching, I realise that humans exist to add value to people. That’s what made us happy. Imagine when you cook a good dish, and your spouse compliment on your skills, you feel happy. It’s a simple life.

Therefore, if you are thinking of “retiring” soon, start planning what are the things which you can do, which continue to impact lives directly or indirectly. If you are planning in that direction, I think you will be fine post retirement.

Follow me on the next post as I share how I plan to do next in my post retirement life.

Disclaimer: I think the word retirement is loosely used. In my case, when I say retirement, I basically means one has achieved time freedom and money freedom. You can still work, but you can choose not to work. That’s retirement.