Over the holiday break, a good friend of mine introduced me to Financial Independence. In a few words, Financial Independence is about having F@ck You money. Being able to support your lifestyle without having to work. Sounds like everyone’s dream, right? Yet not many people are ready to do what it takes. The chances that Blacks become financially independent are even slimmer. I heard shocking data recently:
- The wealth of the top 1% Black families is $1.5 million
- The wealth of the top 1% White families is $12 million
Let’s put things into perspective $1.5 million is the number I believe my wife and my 2 kids would need to become financially independent. With that amount on a bank account, we should get about $60,000 per year in cash, and that forever. I emphasize the ***forever***! That is until the end of my life and that is for our kids, etc… Yes, the great thing about F@ck You Money is that you pass it on.
How to get F@ck You Money and be set for lives?
- Earn more: It is easier than you may think. Probably involves you doing things that you (and many others) may not especially enjoy to do. Anyway, surprisingly this is not the most challenging part of getting F@ck You Money. Keeping reading to learn more…
- Spend less: This is much harder than you think! Most people when they earn more, they spend more. It should be ok, but it is not. My personal example. During my glory days in London. My salary would increase by 25% and I would spend an extra 35%. And I was the reasonable guy! Most other people I knew would spend the bonus they were expecting to get 6 months later. Again, in my case, coming from a humble working-class single mom family I was buying stuff/experiences to show my “success”. To belong when I was with my banking/consulting colleagues. To get in and show off in hype clubs. It was futile. But again, after owning little, being rejected from even bad clubs more time than I can recall… it felt good to spend that money. Would it have been as good as being financially independent by age 35… I doubt it!
- Make your money work for you: So you did 1 and you did 2. You are better than most people! kudos! However, if your savings are on a checking account that does not pay interest… You won’t become financially independent. Your money should work for you. Following the most basic investment approach, in the long term, you should manage to get an annual interest rate of min 8%.
Want more information? Read what the experts say. This is a link to one of my favourite expert, the mad FIentist.
Most, if not all of you would say that this idea is crazy. How could I get $1.5 million? Yet, some people will try to become a pro baller, rapper, etc… The crazy thing is that you are much much much more likely to get $1.5million than become a professional athlete. You just have to be ready to get F@ck You Money slowly!