Choices become a Possibility.

Posted in Blog
28/10/2019 Mduduzi Luthuli

Retirement and Financial Independence (FI) are about choices. If you love your job and want to keep working, do it. If you want to work less, do it. If you want to do something else, do it.

Choices become a possibility.

You can choose where you want to live, you can choose more meaningful ways to spend your time, you can travel, you can spend more time with family and friends, you can learn new skills and you have the capacity and time to pursue lifelong dreams.

Choices become a possibility.

Being financially independent gives you freedom. Living the life you choose, may be very different to the life you feel you need to live now, where the majority of your week is spent trying to earn a living to pay the bills.

Regardless of whether you love, hate or are ambivalent about work, removing your reliance on a salary is both liberating and prudent. Save an annual salary worth and see what that does for you mentally and spiritually.

If committing to 30-40 years of retirement planning is too much, try starting with just saving the equivalent of your annual salary. Within the FI community, this is called “f@#k you” money.

This isn’t necessarily financial independence but rather having enough money put aside that you have the confidence to stick up for yourself, negotiate more strongly for a pay rise and push back on unreasonable requests from your employer.

FU money lets you take more risks, knowing that you can support yourself for a while in the worst-case scenario. Having enough money saved to put yourself first increases your options and possible rewards.

Choices become a possibility.

The confidence to walk away from your employer should the need arise puts you in an unparallel negotiating position – they need you to get the work done but you now have choices and the freedom to make them.

FU money shifts the balance of power in your favour.

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