How much money is enough?
Can money ever be enough? My answer is yes. Money can be enough when we have enough to cater to our basic needs. The idea behind finance freedom is the ability to create a passive income that produces enough resources to take care of our needs.
If $2,000 is enough for me monthly, it will not be for another person because our standard of living varies.
Right now, I am a bachelor so I have fewer responsibilities except the fact that some people depend on me. Also, I live in a country that is suffering from consistent inflation. The price of the commodities in the market changes every time, but I still live below $1,000 monthly, and if I can passively earn $1,000 monthly, I would say I am financially independent.
I believe you don’t have to be a philosopher to understand there is a flaw in this reasoning.
The Standard of living is not constant. You can choose to take it up or down. If you currently spend $3,000 monthly on rent, you can move out, and move to a cheaper environment or house. You can choose to change how you spend and increase or decrease your standard of living to meet financial independence.
Therefore, there is no constant standard of living. Your standard at age 20 is not the same as 26 and the same with 32. We can use a chart to show the fluctuation of the standard of living as we grow.
We have our style of living, and we have a different definition of financial freedom or independence. Some would say “I will be fine with my finance when I make 30x of my needs or expenses,”. Others might say, “I will be financially independent when my income is enough to fix my bills”
According to the wiki,
Financial independence is the status of having enough income to pay one’s living expenses for the rest of one’s life without having to be employed or dependent on others.
On another thought, your expenses can be divided into two parts: needs and wants. Your needs are more important and your want is a choice, so it should not take too much.
Therefore, attaining the height of financial freedom or independence depends on your size of living. Some people make over $100,000 monthly, and they place their expenditures on $110,000, which means they still find $100,000 monthly not enough because of the size of living.
Financial independence is different for everybody, and this will be an unending topic.
What are your thoughts about financial independence? Hit me up in the comment section.
Thanks for your time.
My name is @tykee (Barlogun Michael), a web developer, Civil engineer, content writer and the founder of Meshboc Technology & Digital Services Limited. I am using my content to share my opinions on tech, lifestyle, and finance, to promote myself and impact my readers. I always like to learn. Education is the most thing I cherish.
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