So by now you know what does it mean to be financially independent, at-least in a formulaic way. You have a numerical sense of your runway from where you are now (point a) and also you know the point you can declare financial independence (point b).
But is it so rosy? What about inflation, what about emergencies, what about enhancement of lifestyle? what about disasters and disruptions in family life (eg: a nasty divorce etc)? What about covid-19? So many factors can disrupt the so called financial independence plan. Many things can disrupt the plan.
The formula is to give you an awareness of how things are numerically. How long is the path? How can you plan to attain point b? How about going beyond plan b? That is the idea.
Awareness gives rise to better actions. Knowing where you are and where you want to go gives a better sense of a strategic path to take. So why should we care about all of this?
The more worry free you are, the more you will be able to tap into your max potential.
The more worry free you are, the more creative you will be.
The more worry free you are, the more things you can achieve this lifetime
Objectivity makes us aware. Numbers put things in perspective. Now it is time to act. The basis of mindfulness is this. When we are aware, we will act better.
Let us say we don’t have the 400x and the runway is not more than 1 month. Now how should we achieve financial independence? That is what we will talk about next.
