|This is what $20 can buy.|
When I got back to the States, I started calculating the things I wanted in terms of nights in paradise.
A new shirt: 2 nights in paradise
Dinner out: 1 night in paradise
A new backpacking tent: 15 nights in paradise
Skipping a latte for a week: 1 night in paradise
It made me rethink the way that I spent money. Do I want another object that takes up space, or another night in paradise.
It got me thinking, what if I calculated financial freedom in the same way. For every $400 invested into stock A, the dividend produced equates to working one hour of my day job. Therefore, every $2800 invested replaces one 7 hour work day. Put into those terms, it looks almost easy to buy myself out of working. Instead of spending the $2800 on a fancy vacation that lasts only a week, I can buy myself an annual vacation day forever. Instead of retiring at 65, I can progressively retire, one hour at a time.
**I am not a financial adviser. Please seek professional advice before making financial changes or investments.