Friday, October 29, 2010

Financial Freedom

The phrase 'Financial Freedom' has been popularized by the personal financial guru, Robert Kiyosaki via his best selling book 'Rich Dad, Poor Dad'.

Most of the financial consultants or financial planners would suggest one to reach financial freedom status before hitting the retirement age. In this case, if you are a Malaysian, you shall target yourself to reach financial freedom by 55-year-old.

Imagine if you are able to achieve the status of financial freedom only at the age of 55-year-old, a part from maintaining your lifestyle as a employee after the retirement, you will be financially fit to do what you want to do but do not have the luxury of time during employment. One who reach financial freedom will also live with pride as he or she will not become burden to family (But taking care of the parents including financial support is the responsibility of the son or daughter.)

From my point of view, if you have already plan or half way through the journey of financial freedom, let set a more aggressive time line for achieving the status of financial freedom at the age of 40 to 45-year-old. Getting financial freedom at 55-year-old could be considered as remarkable achievement, squeezing the time line to achieve it 10 to 15 years earlier would be very challenging, but it is worth the effort as such:

1. You are more energetic and bodily fit at 40-year-old as compared to 55-year-old. Freedom and money is more meaningful at middle age than golden age.
2. An option for early retirement.
3. An option to venturing own business.
4. Less pull back for career change which could be challenging and risky as hire and fire is common at the top level position.
5. Spend more time with the aged parents and your spouse by accompany them on what they dream to do like traveling to certain places or visiting to some relatives whom are staying far apart.
6. Educate and grow with your kids before they move on to college.
7. Etc. (Please comment)

What would you like to do upon reaching the status of financial freedom? Are you planning for it?

1 comment:

Jayce said...

SOHO also can enjoy some of the points you mention. ^_^


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