I often get asked the question of why I am saving so much? What is the purpose? Is there an end goal? The short answer is for financial independence and the reasons why may not be as straightforward. It is the case of reaching financial independence first to secure a financial engine so that it can be used to propel yourself to achieve other goals you have in life. For me, it is about being optimal because going for other goals takes away from building NetWorth first.
How’s it goin everybody this is beat the bush recently i’ve been getting a lot of comments asking why the heck i’m saving so much i have one or two videos that explain specifically why i save so much but i would think this is pretty obvious why i do this first of all this question frustrates me a lot so so when i get a lot of questions asking one very specific
Question i really have to make a video just to explain everything in short i am saving money to build wealth so that i can retire early and when i do retire early it means i can go and do more of the things i enjoy the follow-up question to this would be why do you want to retire you just want to be lazy the answer for me is maybe and you really don’t know what
You personally want once you reach this point when you retired or retire early you’ve set up your finances in such a way so that your investment income completely covers your expenses when this happens some people might just very well turn themselves off and just relax for a really long time or maybe indefinitely you see when you have built enough wealth when you
Have enough money you essentially have a lot more time with this time i plan to do a lot more of my personal hobbies so much so that i feel like i’m probably going to do 60 to 100 hour a week just on these hobbies so in effect it might be harder work than me just going to a regular job so in a sense to some people that might not be retiring at all because you’re
Doing all this work what people aren’t really meant to just laze around and do nothing at all at least when you’re retired you’re doing something that you enjoy or something that you love some some sort of hobby that may are not making money so when you do something that you really like all that much and you don’t really care about if it makes money or not well
Naturally you’re going to try to work on it as much as you can in one full week if you sleep eight hours a day you have one hundred twelve hours of waking hours to spend on whatever you want you can use this on your hobbies or you can divide some of it out of course is spend with friends and family the additional follow-up question i usually get after talking about
This is how close are you to retire and beat the bush i’ll give a general ballpark though because i’m pretty certain i will be retired way before the age of fifty out of all these things i talked about people often ask why are you emphasizing building network so much why not maximize having the most fun the toys the most prestige or the most traveled because when
You try to go for any of those other things you are reducing your networks because you’re spending your money in order to attain those things to me this is more like a life efficiency thing because once you reach financial independence it’s sort of like you’re sitting on a financial engine that would propel you to where you need to be so one of my favorite ways to
Maximize net worth is to buy products with the minimum cost per use you can buy a very nice expensive and durable item all you want but if you only use it once then it’s actually not very well worth it so you really should concentrate on nice durable items when you know you’re going to use it for a really really long time sometimes you might get into thinking that
If you buy a high quality product it’s going to be worth your money but sometimes it’s so expensive that when you average it out on the per juice basis it’s still more expensive so don’t be fooled that you should buy everything that’s top of the line in order to save money because sometimes this is not the case finally i like to address something that’s really
Really far ahead when you have enough net worth to retire early and you have a little bit more on top of that this is when you really should consider using more of that money to improve your quality of life for me i personally do not enjoy yard work or ironing so if i get to such a point i might just hire someone to do that for me so that i can have extra time to
Do more of what i actually want to do on this channel you might believe i’m a really frugal person just naturally and i’m always going to be this way i just want to point out this frugal nessus only temporary until i reach financial independence once you have a good buffer zone you’re going to start having an abundance of wealth if this ever happens to me i might
Just well go buy a brand new car which is something that i advise people to not do this is actually something that people should do if you have an abundance of wealth because it’s a luxury that you can just kind of burn your cash and obtain you can also use your wealth to help others or donate to a cause that adds the most value to other people’s lives as well all
In all this true goodness and this act of trying to build networks as fast as you can it’s kind of like a means to get to financial independence and most people actually need to do this because most people do not have financial abundance i hope you enjoyed this way of thinking don’t forget to give me a like on this video comment down below let me know what you
Would do with your money if you find yourself in financial abundance if you’re interested in supporting my channel you can get a free audiobook by trying audible out for free through this link over here if you find out that you don’t like this audiobook or the service you can cancel it before the trial period ends and you don’t have the only thing you can still keep
The audiobook and still help benefit this channel if you’re interested in supporting my channel directly i also have a patreon over here where i give various perks at for your contribution levels and as always don’t forget to subscribe to my channel and click that fellow icon next to the subscribe button so you get a notification whenever i upload a brand new video thanks for watching
Transcribed from video
Why Do You Save So Much By BeatTheBush