Let me state out this in the first sentence, “I am not an expert on this topic, I am fiddling around and will help you figure what I already know. I am not even 7% of my FI Target and I can still fail to achieve financial independence”
But, I am confident that I will do better than what I was doing earlier (which was nothing), I might be slow or fast but I will get there eventually!
…but if we fail to achieve financial independence, we are screwed!
No, of course there are pitfalls on your journey to attempt to get to financial independence, let us not make it sound easier than it is. That side hustle may not work out, your pay rise may not happen, sickness can happen, repairs, car breakdown, bad investments and so on. There are a million unknowns which may or may not happen, and we cannot control them.
The only thing we can control is, our reaction to them, and still keep moving forward. So here are some postulates we can work with!
- Some saving is better than no saving, it can be 50 EURs instead of 250 EURs you had assumed. It still counts.
- Markets, be it housing or financial, will crash and rise. This is not in our control, but what is in our control is to invest for the long term.
- Health beats any hustle or job, eventually ignoring your health will cost you the very same money you made by ignoring it.
- Missing goals and targets in short term is normal. Don’t sweat it, bad days or weeks or months are natural!
- Inspite of all the money talk here, money is still not the most important thing in life. So, live a little!
So, all I am trying to say is, start now and work towards this hard but worthwhile goal. We might be slow, or not achieve 100% of the target, but we will not even up in mud. Unless you make really serious mistakes, you will not end up broke.
Besides do you even have a choice?
When your rentenversicherung(pension) will get you less than 1k EURs after working for 35 years, and your retirement date will continue to climb up to almost 70, how will you survive? Old age poverty is as real as it can be.
Our current social security system is not sustainable and will be either barebones or collapse completely by the time we age, and we need to find a way to supplement the gaps in our income at that age.
So, as I said it before and will repeat, it is all worth the effort.