In episode 235 I talked about the fact that the Great Escape was closer than you think. If you have not yet listened to that episode please go listen to that episode before you listen to this one.
A listener responded to that episode via a YouTube comment saying:
“The flip side to your argument is that most of us don't want to just be “free”. I don't make 10k a month now. But for me to be able to do all the things I want to be able to do, I need to make very close to that. I could live on half that, and pay all my bills but I would not be happy.”
The commenter then deleted their comment so perhaps a lightbulb went off negating the need for the comment to begin with.
In case they are still puzzled, or in the event, you feel the same way, I’d like to address this comment and revisit the core points of that episode from a different angle.
Let’s break down the comment so we don’t miss anything:
“The flip side to your comment is that most of us don’t want to be just “free”
As compared to what? Staying in W2 prison allowing the government to steal from you in the form of taxes on your wages?
Tom Wheelwright wrote in his book Tax-Free Wealth “The average person in a developed country spends 25 to 35 percent of their LIFE working to pay taxes. That means more than two hours of every workday are dedicated to feeding your government. And three to four months out of every year are spent solely so that you can pay your taxes. That adds up to over 13 years in your work life and 20 years in your lifetime…20 years..that’s a prison sentence.”
The listener then said: “I don't make 10k a month now. But for me to be able to do all the things I want to be able to do, I need to make very close to that.”
Understanding your specific freedom number doesn’t mean you need to quit earning once you reach that number. It means that you won’t have to trade time for dollars any longer because your basic living expenses are coming in every month no matter what…
This means that you will be drastically reducing your tax obligation because of HOW you earn your income and the writeoff’s you are now entitled to. The first stage of financial freedom also means you can get to your end goal much faster…want or need $10k to be happy? Ok, do what you just did to get free again which will be easier since now you have so much more free time.
Lastly, the commenter said, “I could live on half that, and pay all my bills but I would not be happy.”
The reality is that achieving a certain monthly figure will never maintain permanent happiness, as you grow emotionally, you will want to enjoy different experiences which will require more money…there’s nothing wrong with that. The good news is that now that you are free, you have the time you need to enjoy these experiences and the time to increase your earnings to pay for them.