The purpose of this website is to discuss my journey to financial freedom and to help you on yours. I’ll be focusing on the following:
- Ways to achieve financial freedom
- Discussion of individual stocks including those that I hold in my portfolio
- How I build my investment portfolio
- Budgeting and financial planning tips and tools that I use
- Ways to increase your net worth and income
- Ways to reduce your expenses
- Key values required when trying to achieve financial freedom
- The impact of taxes on your net worth and income
Why “Financial Freedom 45”?
Well, as it probably seems obvious, because my goal is to be financially independent by the age of 45. But why 45? I find this to be a realistic target age to accumulate substantial income generating assets. I maintain a high savings rate and could probably retire earlier but I don’t want to live like a pauper in retirement and want to have investments that provide at least $100,000 of income annually by age 45.
I also want to have kids (more than one) and cover the costs of their education so they have a foundation. Kids cost a lot of money which is another reason for choosing 45 as a target age instead of 35 or 40.
I also don’t believe in extreme retirement saving. I believe that if you generate a decent amount of income, you can still live a good life while saving and investing a substantial chunk of your money for financial freedom. Living your life needs to be balanced with saving and investing your income.
I currently live in Canada. I am married. My wife and I are currently in our late 20’s (as at the time of writing – January 2017).
I have a passion for investing, particularly investing in stocks. I love researching various companies and figuring out how much in dividends they will pay me and what they may be worth 5, 10, 15, and 20 years down the road. I also have an interest in real estate investment and devote my time to this as well.
I started seriously thinking about my finances only four years ago. Before that, my income barely covered my expenses. This was mostly due to the fact that my expenses were out of control and I was in spending mode. I didn’t focus on increasing my income. My net worth never really increased over this period. I was treading water. I only started thinking about financial freedom after my wife gifted me the book, Rich Dad, Poor Dad, by Robert T. Kiyosaki. In hindsight, the concepts in this book were very simple but they blew my mind when I first read the book. The simple things such as making sure you keep more money than you spend. That you buy assets. Assets as in things that pay you (stocks, bonds, investment real estate). You limit liabilities (including a mortgaged house that you own with the bank). You buy assets, not liabilities. Accumulate assets over your life and you will eventually become financially independent and you won’t have to rely on anyone. These concepts were simple yet so elegant. If you haven’t read this book, I recommend you pick up a copy immediately.
After reading Rich Dad, Poor Dad, I continued to do my research. I’ve spent years reading financial and investing books, spent countless hours on financial websites and blogs, and had various discussions with financially independent people who have mentored me in a way.
By applying the things I’ve learned over the years, I’ve been able to substantially increase my income, decrease my expenses, invest the excess, and substantially increase my net worth. I’m not financial independent yet but I am clawing my way there – day by day, month by month, and year by year. I don’t want to achieve financial independence to retire or quit my job but instead so that I don’t have to rely on anyone in the event that I don’t want to work or something unexpected happens. I believe in work – regardless of whether you work for someone else or if you have a business where you work for yourself. I believe work adds value to our lives and to society as a whole. Financial independence is just the icing on the cake.
The key is to enjoy the journey to financial freedom. Take pride in getting your financial house in order. Don’t let money control you, control it.