Skip to main content

Financial Freedom with Dependents


It has already been shown that it is not that hard to retire young. If the person you marry is also adopting similar lifestyle then it is also easy for both of you to retire young together. But what if you have people who are financially depending on you ? How would you achieve financial freedom with dependents ?

Before I go on, I have to apologize first I don't have an easy to follow solution for this; not like Wealth Pyramid or Personal Finance in 1 picture. Because the answer was already given before this question is asked. And the ability to achieve financial freedom with dependents is really within you yourself as a person, not really a finance issue to start with. Give me a chance to explain ... because most people will not like this.

Through out the whole personal finance concept promoted in MalPF, it has never questioned you how you spent your money. As a matter of fact, the very first thing is to put aside some money systematically and then its up to you what you want to do; But you can only use up to what you have left. MalPF never question you buying that car, phone, liquor, smoke etc. MalPF just want you to do all those things within your means.

So systematically it doesn't really matter how you use your money, not even if they are for your dependents which is a much better cause than above examples. As long as you stay within your ability ( left over after saving ), your personal finance system should continue to work as is.
There are a few common mistakes we commit in practice ( real life );
  1. We treat our dependents as separate entities. While of course we are different people but since financially they depend on us, their expenses are really our expenses. All combined expenses should not exceed what we have left.

  2. We over reach our dependents needs. The fact that we 'allow' them to 'become' our dependents mean there are some emotion connection in between. This 'feeling' always get in to ways affecting our judgement what our dependents real needs are vs their wants.

  3. We ourselves fulfill our own luxury wants before our dependents needs. We can pamper ourself in whatever way we want but we should do it within our means. If there is no money left after settling our expenses ( including your dependents'), then we need to venture into solutions without money. ( There have already been stories shared before how things get done without money )
It was hinted before that young people who has expensive hobby don't get retire early, those who are more creative with their hobbies do. The hobby itself may be the same. Its the way they think about the hobby and what they do about it. Some think they have to BUY, the others try to GET/TRADE/DEAL however way they can come up with. Indirectly, they learn new skills that they can apply in other aspects of their life. Directly they full fill their own wants within their means - and hence did not need to scarify their personal finance system.

Although hobby and dependents are TOTALLY different in all aspects. But our reaction to them are actually similar or relevant. We were 'attracted' to do things beyond our means. If we do that in our early years we will end with less. If we first do it within a control manner (left over money), then perhaps we can do it more often and longer through out the journey.

Its NOT a matter of right or wrong. Its just that you can only choose one. If you decided to go beyond your means NOW for whatever reason, you should also be very satisfy with the price you pay in future. Or else don't BUY it!

Lastly be reminded that income is a pre-requisite in MalPF system. So no matter how you setup your ASS ( Automated Saving System ), increasing your income will increase the chance you can full fill your dependents and your Wants. So instead of letting dependents to push you to go beyond your means, why don't channel those drives into making more income !? Then you may be able to get the best of both worlds.

Ok, I apologized before. Now I have to do it again because I lied earlier. There are actually easy to follow actions you can do to still achieve financial freedom with dependents. But this article is more important than that and further more those easy to follow stuff may only be applicable to some people - and time travel starts to get in MalPF. Yea crazy I know! Thats why I didn't want to tell that story.


Relates stories :

Comments

Popular posts from this blog

Cara Membuat Salad Buah Segar Yang Enak dan Praktis

Cara Membuat Salad Buah - Assalamualaikum Bu Ibu, yang seger-seger numpang lewat ya. Hayoo siapa sih yang bisa menolak kelezatan dari salad buah ini? Terbuat dari buah-buahan segar seperti strawberry, kiwi, melon, kelengkeng, naga merah, semangka dan pepaya yang dipadu dengan dressing yang creamy pasti mantul banget kan. Apa lagi jika dinikmati selagi dingin, endeus! Cara membuat salad buah yang enak dan segar tentu saja cukup mudah. Bahan-bahan yang digunakan juga terjangkau dan mudah ditemui dimana-mana. Selain buah yang sudah saya sebutkan di atas, Anda juga bisa menggunakan buah lainnya sesuai selera. Namun untuk saus atau cream yang akan menemani potongan buah tersebut harus tepat. Tidak boleh terlalu asam, terlalu manis dan juga jangan terlalu gurih. Pokoknya harus pas manis asam dan gurihnya, agar salad buat yang Anda buat enak dan tidak bikin eneg saat dimakan.  Tips sukses membuat saus salad buah yang segar dan tidak eneg adalah gunakan yoghurt plain. Kenapa? ...

New Sabah Property : HOT !

Famous Feng Shui sifu said that new sabah property is going to continue to be HOT for the next 20 years. As a matter of fact, he refers to both Sabah and Sarawak. Some may have already seen that properties development have been on the rise in East Malaysia for some time now especially in Kota Kinabalu, capital of Sabah. Although there have been critics that such a trend has no sustainable growth and therefore they considered it a bubble rather than a living standard up scale. However it doesn't really matter how right they may be or how noble you are, the market doesn't really care. If it continues to have more buyers than sellers then the price will continue to trend up, despite anything else i.e. no one actually utilize those properties. It shouldn't be too hard to understand the rise. First of all, Borneo is an island. Island has limited land. So 'eventually' the price of land will rise. Its been proven in Japan, Hong Kong Island, Singapore and even Aust...

Find out Your Life Purpose in 5 minutes !

Answer these 5 questions Who are you ? What do you love to do ? Who you do that for ? Is it their Need or Want ? How would they change from what you do ? Example:   I write personal finance articles so that anyone can be richer everyday I sell salt lamps so that Asthmatic people can sleep better at nights I drive all the business men in London so that they are always on time I write philosophical topics so online readers can have an inner peace stronger mind. Please write down yours in comments below ~