Monday, February 24, 2014

Fearless in Thought, Flawless in Execution

It can be overwhelming when you do the math.

Many, many white-collar workers do not think about retirement because the figures scare them. They place it at the back of their minds, continue to run on that endless treadmill, hoping that a sudden promotion/windfall would magically solve their worries somewhere in the distant future.

To be able to retire/ live off your passive income (income generated from investments), you would need to have a portfolio worth at least $500,000 (assuming it generates a 5% return - giving you approximately $2,000/month, which is only enough for a modest lifestyle) - ceteris paribus and assuming a linear view of your investments, meaning no side businesses, no extra income, etc.

Many then would have this in mind:
"How do I accumulate $500,000 in the first place? How long would it take?"
The answer?

It depends on how fearless your thoughts are and how flawless your execution is.

Being fearless in thought means that you give yourself an opportunity to think of other income streams, side businesses or a major pay jump (if you decide to continue running on the corporate treadmill). In short, your path towards financial freedom should not be linear, it should be one that provides exponential growth (constantly seeking ways to improve top line income).

So, once you have all these brilliant ideas and thoughts, you have to be flawless in execution. Remember; what you are today is the result of your actions yesterday. If you know that you have to save at least 50% of your income to escape from the corporate rat race, then you have to make sure that you stick to it, or try your best to stick to it. 

In other words, it has to be flawless.

I believe that if we are able to master these principles, we wouldn't be talking about a mere $500,000 portfolio.

And no, I'm not looking to retire at the ripe age of 60. 

I'll be fearless and say that 35 is a better number.

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