by Have you ever found yourself wishing you could extend a family vacation indefinitely, free from the constraints of work commitments? I recently experienced this feeling during a delightful five-day stay in Rhode Island with my father and family. As I reluctantly packed my bags to return to Pennsylvania, I was reminded of the deeper purpose behind our journey towards financial independence.
More Than Money: The Heart of Our Journey
Many people misunderstand our frugal lifestyle, assuming we’re simply hoarding wealth or depriving ourselves of life’s pleasures. They ask, “Why not enjoy it all now? You can’t take it with you when you die.” But they’re missing the point entirely.
This journey has never been about accumulating money for its own sake. It’s about something far more valuable: freedom. We’re working towards breaking free from the bonds of financial obligation so that each morning we wake up with choices. We’re creating a life where the 9-to-5 grind becomes an option, not a necessity.
The Stages of Financial Freedom
I recently came across J.D. Roth’s concept of the Six Stages of Financial Freedom, which resonated deeply with me:
- Dependence
- Solvency
- Stability
- Security
- Independence
- Abundance
Currently, my wife Tatiana and I find ourselves at Stage 4: Security. We’ve eliminated our debts and are steadily progressing towards full financial independence. It’s an exhilarating journey filled with more options than we’ve ever had before.
Living a Life That Feels Good
Our ultimate goal is to create a lifestyle that brings us joy every single day—one that’s rich in experiences, relationships, and true happiness. To achieve this, we’ve committed to living debt-free and cutting unnecessary expenses. Everything else has fallen into place from there.
Financial freedom isn’t about deprivation; it’s about having options. The further you progress through these stages, the more choices become available to you.
Real-Life Freedom: Our Current Options
To illustrate the power of financial freedom, let me share some options we’re considering:
- We could sell our rental property, invest the proceeds, and live off our Freedom Fund, which currently provides a safe withdrawal rate of $29,000 per year.
- We could withdraw some funds, start a business, and relocate to a place with year-round pleasant weather.
- We’re open to Tatiana’s creative ideas when she returns from her extended European vacation—her first visit to her homeland of Belarus in 18 years!
The key is that none of these options involve working to pay off debts. We’ve moved beyond that stage, and the freedom is liberating.
Your Unique Path to Financial Freedom
Your journey might look different from ours, and that’s okay. What’s important is that you visualize the life you want, chart your course, and know when you’ve reached your “enough” point. That’s when you can stop accumulating and start truly living on your own terms.
Where are you on your road to financial independence? I’d love to hear your thoughts and experiences in the comments below.
Remember, this journey isn’t about the money—it’s about creating a life that’s breathtakingly, wonderfully, and truly happy. And that’s something worth striving for.
Yes indeed. The few that get it and get to enjoy life outside of the cubicle build lifetime memories.
Oh the woes of not having enough time, even when you are making good money. Time is such a precious commodity and not worth giving it up for a 9-5 for 50 years of your life. I think your mindset is what makes people eligible for FI. Not everyone wants to live within their means and sacrifice to accumulate money and then live life in their own terms. But the few that do get the point that it’s not the material possessions, it’s the memories built away from the paycheck that really count.
You have made some awesome progress. Independence is great and the idea of abundance sounds nice too! I see you have traveled a good bit, is there a particular place you plan to live abroad?
Thanks Mr. CK!
Tanya is the bigger traveler as she just got back from a 20-day trip to Belarus. I’m just getting started. 🙂 We’re planning to live in Punta Cana and make the DR our base during our first years of early retirement but we’re keeping things flexible so that we can change plans if we feel the need to. It’s not like we need to rush and move to a more permanent place right away so we’re also playing with the idea of traveling the world during our first year of ER, staying in one continent months at a time. This might include doing the Caribbean, Latin America, Asia and Europe. Thanks for reading and commenting.
We are in “Agency” and love it! Nothing like waking up in the morning and knowing you don’t owe anyone anything, and that all moneys that used to go to payments now go to a mutual fund, which in turn SENDS YOU interest 🙂
Congratulations. That’s impressive. Most people get stuck in Stability because they keep on spending as if they were in the Abundance stage.