Cost of Financial Freedom

Achieving Financial Freedom, has been many people’s dream. But At What Cost?

I always know that I need to save money, invest money and make my money work harder for me. But do I know how much I need to save and invest? 

Here is a spreadsheet, to calculate the Cost of my Financial Freedom, in 6 Steps!

This spreadsheet takes into account of inflation and time value money, in an attempt to make this calculation as realistic as possible.

Download the Spreadsheet here, and Try it! And let me know your feedback.

The results simply blows me away. And I realized that Inflation does make Life Very Difficult! To live the kind of lifestyle that I envisioned and achieve Financial Freedom (Assets are able to create enough passive income to sustain my lifestyle) at the age of 40, I will need to start investing $4500 per month at a Return of Investment of 10% per annum, starting NOW till I am 40. For 35, that would be $8000 per month! These figures assume a constant Inflation of 3% per year. Without Inflation, those figures will be $2200 and $4400 respectively.

Well, and of course, that begs the question, is what I am working on now going to bring me anywhere near Financial Freedom?

And, if we are to make a drastic change to our career/lifes now, is it worth paying the cost of our financial Freedom?

Just some Fruit for Thought!

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: