For the first time in a long time, I have been inspired to write about topics that are more than just calculating my debt and net worth. I recently wrote a post that is going to be constantly updated regarding my financial “non-negotiables” and when doing so it got me to thinking about my big picture financial goal. More important the goal writing that post made me realize that I was in fact violating two of those non-negotiables! Specifically, consumer debt and not having enough cash on hand.
How the hell could I be such a hypocrite? Even worse since no one f’n reads this blog who I am holding out to impress? It made me really mad at myself . But, if there is going to be a silver lining that anger reenergized me to think about the big picture before I start to dig down into the specifics.
What is My Main Overarching Financial Goal?
My main financial goal is to reach financial independence. This is different than retiring early, it is knowing that your current assets rather than your current earning aiblity will support your family’s spending habits. There are two quotes from two great authors that explain it better than I would be able to:
Financial independence is the ability to live from the income generated by your own resources
and
The highest form of wealth is the ability to wake up every morning and say, ‘I can do whatever I want today
While they are saying it differently but end up at the same place – freedom. Financial independence is being free from the shackles of having to spend your time in a certain way (usually working your ass off).
I have always seen the most straight forward way to owning more of my time was multiple streams of income rather than one concentrated business. Not sure if that is going ot change in the future, but for now I’ll run with it. There are certain income streams that are more attainable than others and those income streams should be independent of my ability to work within the financial services industry or praciticing law. That always led me to:
- Rental Income
- Dividend Income
- Passive Cash Holdings
For me, I believe that violating the two non-negotiables above have detrimentally impacted #2 and #3 recently. I have recently made some changes and will be excited to see how it all plays out in the next 9 (8/15) to 24 days (end of the month). Specifically, I moved some of the debt (and will move the rest soon enough) to my margin account so that I don’t need to pay down debt proactively. As I sell naked puts every positive day will automatically move me in the right direction. At the same time I started selling covered calls on some of my holdings. If they get called away so be it!
