As time goes by, we are about to enter 2024, where possibilities are endless. In these times of change, we may need to re-examine the way we live, especially the ones we take for granted. Today, as a veteran self-blogger, I would like to share with you a topic - how much money we need to save in order to truly achieve financial freedom in this new year.
Let's be clear: financial freedom does not mean spending money, but rather that the individual is no longer financially constrained by the income from his work. In other words, when you have enough savings, you can get rid of the shackles of your daily routine and start pursuing what you're truly passionate about. So, what is that number?
Let's take a conservative estimate to calculate. Assuming we can save 100,000 yuan (RMB) per year, this amount is quite considerable in many cities. We need to take into account factors such as inflation, prices**, etc., so we also need to consider an additional factor - an annual interest rate of at least 5%. In this way, after 3 years of accumulation, we can reach the key figure of 500,000.
Once we reach this number, we have already taken the first step towards achieving financial freedom. However, this does not mean that we can completely relax. Because we also need to take into account some additional factors, such as unexpected events, uncertainties in the future, etc. So, to ensure our safety and comfort, we need to raise our savings to at least 700,000.
This number may vary depending on factors such as each person's living environment, spending habits, investment strategy, etc. However, the goal of this number is to provide a clear starting point to help us start thinking about how to better manage our finances.
When we talk about saving, we also have some important details to take into account. First, we need to learn how to plan our spending. This means that we need to be smart about the cost of living and say "no" to unnecessary consumption, while also ensuring that our quality of life does not deteriorate. Second, we need to learn how to invest. Investing is one of the necessary means to achieve financial freedom, but at the same time it is also a riskier activity. We need to choose the right investment vehicle according to our risk tolerance and investment goals. Finally, we need to be patient and determined. Achieving financial freedom is a long-term process that requires enough patience and perseverance to persevere.
There are also many challenges and doubts that may arise along the way. Some people may ask, "Why should I give up a stable job income?" Or, "What if I lose my investment?" "Wait. These problems are actually very easy to solve. Stable job income is guaranteed, but in today's fast-paced economy, there is no way to guarantee that your income will never decrease. Investment is risky, but as long as we treat it rationally and do sufficient research, we can minimize the risk. And, failure isn't scary, it's just part of how we grow up. It is only through failure that we can better understand ourselves, the market, and our lives.
Overall, 2024 is a year to look forward to. To achieve financial freedom, we need to save enough money while learning how to manage our spending and make investments. It's a process that requires patience and determination, but as long as we persevere, we'll be able to achieve our goals. Let's look forward to that day together!