Wednesday, February 1, 2012

Path to Financial Freedom -- Create your exit plans

I'm referring to  the following blog post link
and perhaps others with a similar mindset.

In the post, the author lists 5 steps to financial freedom:
Step 1 – Boost your Active Income
Step 2 – Get Rid of Unnecessary Debt
Step 3 – Save More
Step 4 – Reduce Spending and Live Within Your Means
Step 5 – Invest For Passive Income

I do not know anything about the background of the author, but interestingly, to get out of the rat race, his mentality and suggestion, like many, is actually to get into the rat race and be the best rat among all.

Fair enough, especially if we start with a near zero networth. I started the same way.

But... is the road to financial freedom so direct? I used to think it was, but gradually, as you might have seen from some of my older posts, I start to have the following thoughts:
1) What's the point of attaining financial freedom at a ripe old age? Use it for medical? (Read: 1 million dollars... so what?)
2) Is there any point being a millionaire scrooge?  (Read: Millionaire Scrooge?)
3) We all have different definitions of money... and hence financial freedom (Read: Financial Relativity)

In my opinion, the 5 steps by the author is a very sound retirement plan. One can retire comfortably provided one follows the plan with good discipline.

The harsh truth: This is, to me, a newer and more modern rat race, thinly veiled and disguised as a path to financial freedom.