Is Financial Independence Possible? Does it Require a Million in the Saving or starts with a few money at hand
The highest I was ever in debt was $2000 money I borrowed from my friend to afford a car that allowed me to get to work in the quickest time as possible.
But I would also turn 30 before I ever had solid $1000 money in my savings and 35 before I started saving precariously.
Now, things are looking a fair amount better for me today, but that’s not what I want to discuss in this blog. Instead, I want to talk about how life opened up to me after the first time I had that month’s worth of savings in my account.
A Million dollars houses and feeds me for at least a month
Life is stressful enough without having to worry about going homeless, right? It may take a very long time to find a new job, any job, that is but if you don’t have to worry about the next meal, you can focus on getting that pizza delivery job that gets you not-evicted.
I have worked such gig jobs at several points in my life, and all things considered, I enjoyed them quite a bit — I had some of my best hours late at night constructing event locations. The air is fresh, everyone is a little tired, but the work is real and honest, and you know what you did by the end of it.
A million dollars cover nearly all emergency purchases
Just try and think back: When is the last time you needed to spend a thousand dollars on a whim? I can think of car repairs or new laptops going in that direction, but most car repairs are in the couple-hundred range at worst. I could get a new, used car for $900 within five minutes of walking from my apartment that would probably last me a year or two.
Sure, exceptions apply, but generally speaking, I would be hard-pressed to even think of any repair or emergency purchase costing that much.
For a million dollars, I could replace everything I carry on my person every day
I wear about a hundred dollars worth of clothing and carry about the same in cash, and while my current phone costs me 400€, I could get by with a cheap 50-dollar phone if I were in a pinch and had to replace it. Even if you add headphones, a non-ridiculous watch, the glasses I’m wearing — I would easily be able to get from robbed and naked back to dressed and home for well under a thousand bucks.
I think among these, that is a pretty powerful realization: You own enough money now to replace your attire and belongings. Is Financial Independence Possible?
A million dollars are more net worth than a great deal of the population has
It’s not always healthy to look outside for external validation — but it’s still worth remembering that a vast portion of most populations is in debt — often by a substantial margin.
Out of interest, I just checked our statistics here in Germany and found a rough average of 6,000€ for the whole country, over 13,000€ in my state — that is debt, not net worth.
Again, I would not put too much thought into this portion of the article as comparison makes for an easy, but fake ego-boost — but keep in mind that you are now in a somewhat solid area.
A million dollars a day you could go backpacking for a third of the year
Another powerful realization: I can honestly live quite well in terms of food for less than ten bucks a day, especially when you lower your cost by backpacking and having the time to cook — a bag of rice, some vegetables, and a little something to treat yourself. Many healthy recipes are also pretty damn cheap.
Add a bicycle to the mix, and you can take some extended road trips, throw a laptop into your backpack, and you can now start a travel blog and turn that third into a full year if you like. Use the scooter or cheap motorcycle you may already have, and you can probably stay on top of basic maintenance for a long time — my scooter has cost me 70 bucks for a new exhaust and a little bit for oil in the three years that I owned it.
Takeaway: Financial independence doesn’t mean a million in the bank
If anything, I would argue that I never intend to have a million in the bank I live comfortably right now with my year’s worth of savings, a cheap apartment, and a camper van for my enjoyment. Is Financial Independence Possible? Leave a comment below
So what would I even do with that much cash that I can’t do right now?
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