14 Jan Being time rich
Before I start the discussion on being time rich, lets talk about being time poor. Guess its back to the Asian culture that we are being taught to work hard, very hard to climb the corporate ladder and get a high paid salary. Indeed, there are certain percentage of it is true that we need to work hard as this is a competitive world. I do not want to give a wrong perception especially to the ones that just started working, salary is your highest asset (at least during your early days). Without a an income you are going no where and unless you are dependent on striking a lottery or a jackpot in a casino. But the argument point is whats next after you have gotten you salary. However, the fact in a corporate world is the higher you climb, the higher the salary you get paid, the company “wants your life”. This is where we can be rich, get a high paid salary but we are NOT time rich.
In the internet now, there is a movement widely spread known as FIRE (Financial Independence, Retire Early). It falls back to the basics where it basically ask you to develop a lifestyle where you can then save up all the income you have, buy assets and let the returns replace your income. However, what I realized is a lot of people do not know their target. As easy as it sounds but it is important to know your target. This is important for your planning as well as the physiology perspective.
To share a story where the above is possible. John comes out to work after college. However, the difference with John is does not make the mistakes like most of us do where we celebrate by buying stuff and spending most of our income. Instead, he still lives like a student and saves 60% of his income by buying assets. He continues this cycle for 10 years, living frugally and invest all his remaining incoming. By the age of 30, John realises that his assets now is returning the same or even more than his monthly expenses and he can retire. He can choose to work but work because of choice and not because of salary. This example is not a fiction character I created but inspired by a Canadian blogger Peter Adeney also known as Mr Money Mustache. This is one of the many people where they are time rich and can do things they like instead of forced to do things because of the income. For further reading, feel free to go to Mr Money Mustache Wikipedia
I guess I don’t need to discuss much about being time rich. We are not talking about having a lifestyle that you don’t do work but just sitting around (sounds boring to me) but rather doing something you like and not constrain by time & the income return. Plan for not just being rich financially but also time rich.