June 5, 2013, 5:00 am

Do You Live for Today or for Tomorrow?

by: The Financial Blogger    Category: Assets and Net Worth,Career
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Last week, I wrote about our Daycare project in order to make more money. This is the compromise we found to make more money, reestablish our budget and still enjoy our quality of life. While my wife will be working and I will have to participate more in the household chores, my children will still come home from school early and we will be there to help them do their homework.

 

However, we won’t be chillin’ like villains as we are right now. Life has been pretty smooth since I moved into my house in the country three years ago. We haven’t worked much, enjoyed two awesome vacations in Virginia Beach and Disney World an even put money in the house so we have central AC and a pool for summers. As I have mentioned before, life was great but my debts were stagnating. It was somewhat impossible with such a lifestyle to aggressively drop my debts and I even ended-up with some consumer debt, something I’m definitely not used to having!

 

Working Harder with One Goal in Mind

 

I’m pushing harder on my online company while my wife will start her daycare for one specific reason: we want to reach financial independence. I’m tired of looking at my account balance to make sure I have enough money to cover for the month. I’m tired of thinking about the best moment to cash out my employer’s stock or waiting for my year-end bonus in order to breathe again. This strategy worked well for several years and enabled me to live beyond my means most of the time. This time is over.

 

Why Live for Tomorrow if You Have To Skip Today??

 

Some people think it’s better to live now and not wait for tomorrow. Their thesis is based on a pretty strong argument: what if you die tomorrow? Since nobody knows, I guess we can argue a long time about this concept of life. On the other hand, I’m tempted to ask: what if you live until 90? The odds are actually on my side as your chances of dying tomorrow are pretty thin compared to an average life expectancy over 80 now in industrial countries…

 

Nonetheless, I’ve always been a big supporter of the “live now and see for tomorrow”. I have a stable job with a solid pension plan so I don’t really mind about tomorrow. I spend a lot of money to enjoy life right now and even dropped my hours worked since 2009 to almost feel like a half-retirement (after all, who can work in a bank at 4 days a week? Hahaha!). But over the past six months, I realized that I want even more. I’ve been telling people as a half joke, half truth that I wanted to retire by the age of 35. I’m turning 32 this year and I now truly want to retire at 35. It’s not really retirement; it is more like financial independence.

 

The Price of Early Retirement

 

Dreaming about the morning where I will have to head for my coffee before playing golf is surely interesting but it doesn’t bring the dough home. While I’ve realized I want to retire early to enjoy life, I also realized that I have to make some sacrifices to make it happen. You can’t chill out and hope you will win the lottery.

 

The price of my early retirement is definitely in the number of hours worked. I have to go back to 50 hours/week while my wife goes from “0” to 40! Don’t get me wrong, she is definitely working more hours than me right now being a stay-at-home mom but those hours are not compensated. This is what we need: more money to pay off our debts faster!

 

By changing our life and making more sacrifices, it implies I will have to participate a lot more in doing household chores and that we will have to do the groceries over the weekend and so on. Our lifestyle won’t be as smooth as it was before. But I know that we will build a stronger future for us and our children.

 

I Won’t do That Forever

 

If I had to change my current lifestyle for the next 10 years or even for the rest of my life, the change wouldn’t make sense to me. The point here is to work very hard for the next three years and then, change  our lifestyle drastically. I did it once when I started working ten years ago and I was able to buy myself 5 years working 4 days a week. Next time, the goal will be to drop my hours worked to 25 hours/week. This is just enough to keep me busy and ensure a source of income. But I won’t be able to do this as long as I have all those debts!

 

Which Kind of SacrificesAre You Willing to Make?

 

I told my wife that the next three years won’t be fun. We will be working hard and this is going to be very tough. However, in three years, we won’t have discussion about our budget anymore. This is the whole point: being able to spend money as I want without having to check my bank account.

 

This new project implies that we will both crank up our hours worked. I don’t want to cut back on my current lifestyle and there is not much I can cut out of my budget anyways. This is why the only solution is to crank up the income for a few years and use this extra income to clear our debts.

 

Would you be willing to work like an animal for the next three years if it leads to financial independence? 

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Comments

Good luck buddy! I am here doing the same things. I am putting hours on both my online business and my offline businesses like crazy. I would rather live for tomorrow with a goal in mind. People are quick to throw the if you die tomorrow in your face. Well those same people are saying that 10 years later. 3 years will fly by! I cant wait to start making some income from online again.

I worked very hard in my 30s to reach financial independence! The following 28 years were filled with fun, interesting and exciting jobs or careers. As I near my (4 years away) retirement, I am more concerned with what I will do in retirement than building up income.

Best of luck on your strategy…I am certain the 3 years of hard work will pay off. I like how its a whole family effort as well, each of you supporting one another!

I really do not believe in people saying you have to live one day at a time. We have to be practical and think of our future especially if we have kids that are depending on us.

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