What is my purpose in life?
To live a principled life.
To be a good father to my sons.
To be a good husband to my wife.
To achieve financial independence so that I can better achieve the above.
Financial independence thoughts
To achieve my goals, I need to work hard at my job.
I must continue to pursue adequate side hustles, such as blogging, writing a book with my sister, investing.
I must teach my children the value of a dollar earned and, more importantly, the value of a dollar saved:
- If you are in a high income tax bracket in Canada, and you earn $1.00, then you will pay 49 cents in tax and be left with 51 cents
- If you spend $1.00 less, then you will have $1.00
The power of saving is much more significant than the power of increased earnings. In fact, it’s roughly 100% greater.
When you own a business, this is even more pronounced.
Given the nature of fixed and variable costs, generally you may only achieve a 10% net margin. That is, for every $1.00 of revenue you will only end up with 10 cents in your jeans.
In that situation, $1.00 in savings is 10x more powerful than $1.00 in earnings!