Absolute Financial Freedom
When you think absolute financial freedom, think total rock star lifestyle! You can pretty much remove any financial limitations and pick up your air guitar for this one!
You will have achieved absolute financial freedom when you can pretty much do whatever you want, with whomever you want, as much as you want – without ever having to worry about money or work again.
So, assuming we’d still like to keep everything we have/do from our financial freedom list, we now add all the new dream capital items we’d love to have that are not in our financial freedom list. For example:
- 35-Yacht ($500,000) – $5, 000/month
- Ferrari Testarossa ($250,000) – $2, 500/month
- Piper Cherokee 140 or Cesna 172 Private Plane ($30,000) –$3000/month
- Own desert island ($7,000,000) – $14,000/month
Additional monthly unearned income needed for these dream luxury items comes to $21,800/month i.e. $261,600/annum. Therefore the total cost of absolute financial freedom is the $140, 400/annum needed to achieve Financial Freedom PLUS an additional $261,600/annum = $402,000/annum
Again, using an annual 8% return on investment would mean you’d need a critical mass of capital amounting to $5, 025,000 in order to secure absolute financial freedom. So, by today’s standards it’s a very significant sum of money/capital. In order to have built up this level of personal wealth, you most likely will have become a noteworthy business owner and quite a sophisticated investor i.e. you’ll be a total money master!
So, there you have it! Financial Freedom and Absolute Financial Freedom defined in terms of an absolute sum of money required each year. So, now you know EXACTLY what it’s gonna take for you to eventually quit working for money and finally have money working for you; to escape the daily grind and retire to Margaritaville…should you want to! Check out my other articles on Personal Finance, Business and Wealth Creation tips to help you reach the financial freedom finish line…fast!
About Keelan Cunningham
Keelan Cunningham is an entrepreneur, multiple business owner, author, and personal finance/wealth building specialist. Keelan’s passion is helping people improve their business acumen and personal wealth creation strategies, so they can lead a truly wealthy life in all aspects and with any luck similarly transform the lives of others.
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