Working For a Living — Or Not
Have you heard that old Huey Lewis and The News song called Workin’ for a Living? Some of the lyrics go like this:
I’m taking what they giving ’cause I’m working for a livin’.
Hey I’m not complaining ’cause I really need the work
Hitting up my buddy’s got me feeling like a jerk
Hundred dollar car note, two hundred rent.
I get a check on Friday, but it’s all ready spent.
That song is basically the epitome of what I don’t want my life to be like. Ever! (Although I suppose $200 in rent is a great deal many places — I’d take that if it were in Hawaii.)
What I really want instead though is to reach what one of my favorite books (Your Money or Your Life) calls the Crossover Point.
According to the book, the Crossover Point is the point in time “where monthly investment income crosses above monthly expenses”. In other words, it’s the point in time where you’ll be financially independent. You won’t have to work for a living.
That doesn’t mean you must stop working for a living — it just means that you can if you want to, because your investment income will be greater than your expenses at that point. In my mind, having a steady residual income that’s greater than my expenses will accomplish this same thing.
Becoming financially independent early is something that’s important to me, because I love having choices. Somehow things are so much more interesting when you’re doing them strictly because you want to be doing them — not because you know you need the money.
How do you feeling about becoming financially independent like that? Is that something you’re striving for in your future?