Achieving Financial Independence

[Phil Nilsson]

How many of you are totally committed to financial independence and if so what are you currently doing to achieve it? Ups and downs or trying to "make it" ? ... getting sidetracked, the setbacks, the victories, finally "getting there"? Should be some interesting stories in courage to hear about. Please tell us about your journey and where you are with it at this time.

Phil Nilsson
Green Industry Consultant
nilsson.assoc@snet.net

[RRS]

Ever since the day I put together a business plan, personal budget, and business budget I've know excatly what my personal and business standings would be for the next 10 years.

If I stick to my roadmap I will have nearly $350k in personal wealth ten years from now. I guess it will depend on what my standard of living is at that time. If I continue to live a somewhat modest lifestyle, and invest right, it's possible I would never have to work again 10 years from now. We all know how tough that is though. At that point I'll make a new 10 year plan.

I'm the type of person that must follow a structured financial plan. Last year I had my accountant (family member, self-made CEO of fortune 500 company) help me with my finances. I feel very comfortable for the first time in a while. I love what I do for a living, it doesn't even feel like work. It's my life exactly as I want it to be. (sweet!!!)

[clclawn]

to me finacial independance means on thing feedom. To have enough money to do what you want. The only way i see this as a possibility is to be debt free. when you don't owe any money you decide what you need to make and when. You have the ability to buy what you want and do what you want.

[dave072]

well said clclawn. I am currently doing everything possible to become debt free. Living on beans and rice. I am living like know one else right now so that later in life I can live like know one else (qoute by Dave Ramsey). If you are not debt free, you need to check out www.daveramsey.com. (recently seen on 60 min.) His principles are simple, but very good.

[KenBrown]

Being debt free is not the definition of financial independence. Financial independence is achieved by getting your passive income (money generated from assets, not your time and labor) to exceed your monthly expenses.

I'm far from reaching that goal as I have just begun my journey.

[lclandscapes]

Similiar to Casey, after business plan, setting goals, personal expenses, I knew what I had to do and how to get there. Right now I do not live a lifestyle that I would like to live, however in 5 years I will be in a very good position. I carry no credit cards (one more year and they are all paid off), have refinanced my home in SC to intrest only loan (cut payment by 55%) with no pre payment penalties, but still pay what my old note was, did the same thing on my rental home in TN (take all of renters money and pay interest + $450 towards principle every month) and will buy another rental home, or land tract in SC late next year.

As far as growing business to help achieve these goals, have a very structured plan. Note books and databases of phone calls, builders, and cold calling list that get an average of hour and a half a day. Most of that time is utilized during drive time, and when crew takes lunch. I have my father (who has been CEO of several companies and a private bankruptcy consultant) look over my books and give me ideas to better manage my company, and yes I do pay him a modest fee for his time. My wifes paycheck goes staight into the savings account and we dont touch it. Actually I dont think we even know the account number except for when statements come in. We set ourselves on a very strict budget and stick to it. If things go well, will hopefully be debt free in 5-7 years.

Good topic Phil.

[Phil Nilsson]

Great feedback so far ...

[J&R LAWN SREVICE]

After 22 years in this work. Home paid for money in bank no debt. To me were i can say i have met my goals. I was able to give my to sons there down payment on there homes.

[Phil Nilsson]

After 22 years in this work. Home paid for money in bank no debt. To me were i can say i have met my goals. I was able to give my to sons there down payment on there homes.

Both those boys are off to a great start in life because of you ... and you know too it didn't have to go that way ... took a lot of steady, hard work and keeping the faith.

[clclawn]

Being debt free is not the definition of financial independence. Financial independence is achieved by getting your passive income (money generated from assets, not your time and labor) to exceed your monthly expenses.

I'm far from reaching that goal as I have just begun my journey.

How can you call that independence. Bebt free is the only way to become independent. If you are required to make 10,000 a month to just pay the bills, and you make 12000 you are depending on whatever source of income you have just to get by. If you are debt free you tell your money what to do, When you have large amounts of debt, the money tells you what to do.

[KenBrown]

How can you call that independence. Bebt free is the only way to become independent. If you are required to make 10,000 a month to just pay the bills, and you make 12000 you are depending on whatever source of income you have just to get by. If you are debt free you tell your money what to do, When you have large amounts of debt, the money tells you what to do.

You will always be dependent on some source of income and you will always have expenses (even when you're debt free). Most people, including myself at the time, depend on their labor and time to pay for their monthly expenses. Once your assets pay for your monthly expenses, you are then free to do what you please with your life.

That is financial independence. At least the way I see it Nice topic!

[dancom]

Next year I will be starting my 6th season. For the first time I will not have to work on a truck, my crews will do all of the labor, all I will only have to do is manage the business. Not that that is not work because we all know it is. I like doing the bidding and the selling of the services, getting out and talking to the public. I can take off and do things with my family for the most part when I want life is good and keeps getting beter.
My wife and I are taking our first vacation, just the two of us, in 14 years next month. Going to vegas for a week.

[lclandscapes]

Phil,

How is the new COMS program coming?

[clclawn]

You will always be dependent on some source of income and you will always have expenses (even when you're debt free). Most people, including myself at the time, depend on their labor and time to pay for their monthly expenses. Once your assets pay for your monthly expenses, you are then free to do what you please with your life.

That is financial independence. At least the way I see it Nice topic!

I agree you will always have living expences, but living expences are an adjustable figure, If your income gose down, you adjust your living expences, If you have 20,000 in creadit card debt and your income gose down, you screwed.

I agree if you are making a few 100k a year, and have a little debt your just fine, But if your 50k a year and have debt, that is not independance.

[DoubleT]

clclawn, Ken Brown is right..... read Rich Dad, Poor Dad by Robert Kiyosaki his books will define this principle. Also, the book One Minute Millionaire will show you how to have multiple streams of income in order to reach a passive income life style.

These are great concepts that I am still working on but, I have many friends and family that have proven that they work. Great discussion!