In order to achieve financial independence, you need to first understand what your annual expenses are. That’s how much money you need to live comfortably every year.
Your annual expenses can include things like housing, transportation, food, utility bills, entertainment, travel and the many other things that make your life … well, your life!
For our family, I’ve found that number to range between $60,000 and $70,000 per year. That number is after taxes and it doesn’t include money for saving and investing.
With lower annual expenses, it would definitely be a lot easier for our family to become financially independent.
If we’re using the 4% rule to calculate how much to save to become FI, then we’d need $1,500,000 – $1,750,000. Considering I have around $4,000 in a taxable brokerage account at 37 years old, that’s going to take quite a while!
For our “Be the Change” segment this month, we are featuring Thorn – an organization that is dedicated to eliminating child sex abuse from the internet.
I’ve invited the Lead of Marketing and Partnerships, Sarah Potts, to tell us more about this organization. We’re also going to discuss why this deplorable situation for children is on the rise and a lot of it is here in the United States.
Lately, I’ve been thinking of a lot about my goals. I’ve decided that the goal of becoming a young millionaire pales in comparison to becoming a generous giver. Since I’m neither of those things right now, I figured I would get a bit of assistance on my giving goal by reaching out to someone I admire.
Allison Kade, Editorial Director at Fabric, joins me today to talk about how and why she has given away 10% of her income to charity for the past 7 years. She believes that charitable giving provides you the opportunity to create positive and lasting change in your community, your country and with society at large.
I agree with her and I’m inspired. This is a goal I can get behind.
As we’re out and about enjoying the holidays this year, we will more than likely interact with someone in the service industry. We may be served by a waitress, greeted by a host or checked out by a cashier.
These folks are hustling to pay their bills and hopefully, they will make enough to have a happy holiday with their family. Unfortunately, these positions are some of the lowest paying jobs in the US. The average waiter or waitress in the US makes around $20,000 per year.
While we can’t easily change the landscape of the service industry, we sure can give back to our neighbors who are working hard during the holidays.
As a small gesture of thanks and paying it forward, my wife and I are planning on giving two random $100 tips to someone in the service industry this year. Rockstar Finance has already joined in on the fun by supplying us with $100 for the effort! We’re hoping you will join us too.
We’re calling it #BigTipTuesday! Here’s how it’ll go in 5 easy and fun steps:
I only have one life and I want to make the most of it. For me, that means following my driving desire to give my family the best I possibly can.
Financial prosperity is an incredible gift that I can leave my kids for sure. They will take the knowledge, assets, and example we’ve given them to further strengthen our family tree in the future. That would unquestionably be a successful life in my book.
Lately though, I feel like I’ve been neglecting a major piece of the family prosperity puzzle: Charitable Giving.