SG Budget Babe
Asked by Anonymous
Asked on 11 Aug 2018
To understand intentions behind saving up
45! I wanna have time to pursue my own dreams without worrying about money - 45 is the latest I've set for myself to become a published author!
Intention behind saving up and investing from an early age is really to maximize time in market and the compound effect.
That said, going by the typical wisdom that FIRE is 25x your annual expenses, then I have hit that.
Life goes on as usual! Main principles of spending time with loved ones, pursuing passions and making the best of each day still stay the same.
The most common financial freedom goal is $1m. I guess most will reach there from the ages 40-55.
But your question is the intention behind saving up.
Financial independence is a concept where you don't need to work to support your lifestyle. That's a great reason to save up.
With low job security these days, financial independence means less stress on paying off your bills. Maybe that's freedom and flexibility to live and work on your own terms.
I can also share from previous polls, some want financial freedom to pursue artistic hobbies. Kind of like ending "required" work to make ends meet.
More tips on financial freedom and FatFIRE (which is comfortable financial independence retire early) in this post [click more to continue...]
Top Contributor (Nov)
Between age 45 to 55. Life is short.
There are many things that I want to do in life other than earning money, e.g. charity, spending more time with family and pursuing my hobby and interest.
Here is everything about me and what I do best.
Well, I really hope by 51 I'll be able to achieve it, there's no true single reason why I set it at 51. But I think for the fact that I started working at 21, probably 30 yrs of slogging (1/3 of my life) is good enough before I decide to do something else that I'm passionate about or to travel the world, perhaps?