Simple Living for Financial Independence in Five to Ten to Twenty Years, and Beyond

Over the last ten plus years I have consciously reconsidered my values and taken steps to align my life with those values, particularly in relation to work, wellbeing and personal finance.

Over this time, I’ve arrived at a simple framework for making real improvements to work-life balance and for making achievable progress toward financial independence.

Work, personal finance and wellbeing are intertwined. It is important to find ways to improve each without negatively impacting the others. I’ve made iterative changes along the way, based on reflection and learning from mistakes.

Timeframe for financial independence

This should be short enough that it feels within reach and long enough that it doesn’t create too much pressure or require compromises that don't align with what's important to you.

Develop a plan with numbers that demonstrates the goal is achievable.

Define your values

Get very clear on what is important to you. The clearer, the better.

This enables decision making that moves you toward your goals and improves your quality of life.

Simplify life

Reduce what you need to live a good life.

The benefits of doing this include saving money in the short term, reducing future cashflow required to sustain your lifestyle, lower cognitive burden and less stress.

We can do this in all areas of life including but not limited to:

Financial - possessions, entertainment, accommodation, transportation, food, holidays.

People - be careful how you give your time, energy and attention and who you give it to.

Increase income

Find a way to earn more that fits with your personal preferences, strengths and skills.

Ways to start increasing income include:

get a pay rise in your current job

change job for a pay rise

freelance or consult on the side - sell your existing skills for money.

Scale your income

The potential for scaling income is based on ownership of assets that generate cashflow and may appreciate over time. This can be achieved through buying or building passive income generating assets.

There are many ways to do this including buying shares or ETFs, buying a business with an operator or manager (no time required on your part) or building passive income generating assets such as websites or digital products.

Envision your future

Develop a vision of your future and take steps toward it.

Define your goals. Develop a plan. Keep it manageable and low stress, taking small steps.

Take care of yourself

Develop a simple self-care routine. Figure out what you need to do to take care of yourself in a way that is manageable.

Take care of your physical health. Eat a healthy diet, exercise regularly and get enough quality sleep.

Sustain your mental health. Make changes in your environment to minimise stress. Change your thinking to minimise stress.

Make work enjoyable

Figure out how to make work enjoyable, or at least not painful, in the meantime (if a job is painful and there is no viable solution, change jobs).

Choose a work environment that suits your personal style and preferences. This could mean a change of industry or geographic location to get a better cultural fit. Keep in mind there will always be compromises.

Change the role to one that uses your preferred skills. Get yourself into a job where the way you spend your time is enjoyable.

Get the important things right

Figure out what are the most significant aspects of work and life that will most significantly impact your quality of life. Get those aspects right.

There will be compromises.

Enjoy the journey.

With time and intentional living, financial independence is achievable.