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How to achieve financial freedom in less than 10 years starting from scratch

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The term “financial freedom” gets thrown out a lot by personal finance writers (myself included.) But it’s often unclear what the exact definition of financial freedom is and how someone can know if they have achieved it.

Here is my simple Definition of financial freedom: You have achieved financial freedom when you can spend your days doing work that you love without worrying about how you will pay the bills.

The best part of the above definition of financial freedom is that it does not require you to amass a massive amount of wealth. It simply requires you to find a way to pay for all of your living expenses, plus a little extra for retirement savings by doing work that you truly love. …


A rational approach to the rent vs. buy decision in an irrational world

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The decision of whether to buy or rent a home has become one of the most debated topics in personal finance. While some believe that owning an asset is always better than paying rent, others look at the cost of ownership as too high to make it worthwhile.

Luckily, Canadian portfolio manager and YouTuber, Ben Felix, developed a rational approach to answering the rent vs. buy decision that he calls the 5% rule.

Here is how the 5% rule works. Multiply the value of the home by 5%, then divide that number by 12 to get your breakeven point. If the monthly rent on a comparable home is below the breakeven point, it makes financial sense to rent. …


The math behind FIRE contradicts the spirit of FIRE

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In a recent article, I introduced my personal definition of financial freedom; Being able to pay for all of your living expenses doing work that you love.

This simplified definition of financial freedom focuses on income. That puts it in stark contrast with the Financial Independence, Retire Early (FIRE) movement, which focuses on asset accumulation; once you have accumulated enough wealth, you are considered financially independent.

In this article, I’ll compare the pros and cons of financial freedom compared to FIRE to help you decide which goal you want to focus on.

The math behind FIRE

The math behind FIRE relies on two rules of thumb. …

About

Ben Le Fort

Sharing money lessons I’ve learned on my journey from debt to Financial Independence.

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