When people ask if I had to make sacrifices for financial independence, they’re usually wondering if I missed out on the typical fun experiences of a young adult. I certainly did. From age 22 to 34, I worked over 60 hours a week. This rigorous schedule left little time and energy for typical leisure activities, as I was focused on saving and investing to escape the corporate grind by 40.
The Rational Sacrifice
During my younger years, working long hours was bearable because every dollar saved and invested was crucial for my financial goals. The fulfillment from seeing my savings grow was more gratifying than spending on immediate pleasures like bars or vacations. This mindset helped fuel my commitment to my financial goals, and by 2012, the benefits of these sacrifices became evident.
Sacrificing Again as a Middle-Aged Man
In October 2023, after purchasing a forever home, my focus shifted back to intense saving and investing with a target to regain financial independence by January 1, 2029. I’ve adopted a frugal lifestyle, reminiscent of my earlier financial journey, with rigorous cost-cutting and a planned return to generating active income through consulting.
Skipping Social Events to Save
Recently, I decided to skip a dads’ night out, which involved an expensive steak dinner and a basketball game. While I’m a fan of the Warriors and enjoy a good steak, the total cost of about $500 was unjustifiable under my current saving regime. Instead, I chose a more economical evening, enjoying a $18 Vietnamese pho at home and watching the game on TV, saving a substantial amount of money.
Celebrating Frugally and Investing the Savings
Rather than spending on a night out, I invested in two shares of Apple and put the remaining savings into an Innovation Fund for more exposure to private AI companies. This investment approach brings me joy and aligns with my long-term financial goals.
Desire to Achieve FIRE: A Mindset
If asked about the sacrifices made for financial freedom, I would point out my choice to skip social outings in favor of saving. While I have the means to spend more freely, my focus remains on achieving financial freedom as swiftly as possible. I believe it’s not enough to merely like something; I need to love it to justify the expense.
The Impact of Choices on Financial Independence
Unless the desire for freedom outweighs your spending impulses, achieving financial independence may be challenging. Our expenditures are deliberate, reflecting what we believe justifies the sacrifice of future wealth. It’s fine if one’s drive for financial independence isn’t as strong as others. If you’re satisfied with your job and it pays well, it might be best to continue while managing your finances prudently.
Conclusion
Achieving financial independence often requires forgoing immediate gratifications in favor of long-term benefits. This journey is personal and varies based on individual circumstances and choices. For those committed, these sacrifices can pave the way to a more secure and potentially fulfilling life.
