Financial contentment is a key step. We don’t psychologically (or financially) go straight from realizing debt freedom to financial independence and a permanent vacation. Financial contentment is the stage where you are debt free and actively saving for your dreams. You can calculate how many months (or years) it will take you. The path is clear and you are moving along smartly. You might spend years to decades in this stage.
Every month you are saving for your dreams and goals, and every month you have some fun money to play with. You might take regular vacations. They might be frugal or more elaborate. Life is good. You can afford your favorite foods, some eating out money, some nice date nights, and opportunities for your children or loved ones. You feel in control of your finances, your life and your destiny. You are content.
At this stage, you might find a reputable financial manager to invest your money and help it grow faster. You are also likely investing in retirement accounts. Or you might decide to be your own investment manager and choose your own investment products. Either way, this is a bit of a brave new world and is dizzying at first. It requires an incredible amount of trust – in yourself or in your investment manager. Do your homework to make sure they, or you, are worth that level of trust.
The effect of this stage is an overall happier you, better marriages and better relationships between you and your children or family. You are probably more relaxed and happier at work and that leads to more opportunities. It’s a wonderful stage to be in. You cruise along, tracking your goals each month. And then one day. It just happens. You hit that magic number… financial independence… and the effect on you changes yet again.
