10 Years - Road To Financial Independence

29 years old! How quickly time flies.

This is one of the most "turbulent" year of my life, with many obstacles and down period. Looking forward to the 2 weeks year end leave to recharge and re-organize.

As I don't forsee myself settling down anytime soon, there are few "life goals" I can make aside from financial ones. On the positive note, perhaps that isn't such a bad thing.

Come January, I will officially kick start my 10 years master plan to financial independence.

Having worked for 3+ years,  I have reached a stage of relative stability - No debts, sufficient emergency funds, mini war chest and decent portfolio. I also just completed my first full year of investing, and while the results weren't pretty due to the minor market crash, I have learned many valuable lessons. It's also lucky that I'm experiencing a market correction early in my life.

I have mapped out a plan based on how much I can inject yearly, a conservative yield of 5% dividend and 5% capital gains, roughly based on this calculator. According to my calculations, it'll be 10 - 12 years until I gain financial independence. (Hopefully before I reach 40!)

*All these are based on assumptions that I remain single, don't purchase a property or raise a kid. They also excludes any wage raise, inflation and CPF calculations. Anyway, I shall write in more detail in the year end tabulation.

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What does it all mean then? Am I going to retire then?

Actually, financial independence has nothing to do with retiring. It got to do with the freedom of your life.

I've seen many people around me "suffer" from poor financial status, either minor or major.. They are scared of losing their jobs at 40 years old because they have no savings. They endured humiliation and pain because they have families to feed. They developed health problems but can't take time off to rest. They give up their dreams because their passion can't feed their lifestyle.

I really hope I don't become like that.

Who knows what will happen by the time I'm 40?

Will I still have passion for technology? Will I still have the the energy to do what I am doing now? Will I still be fit and healthy?

Or will I have developed new interests? Maybe I'll rot at home. Maybe I'll travel the world. Maybe I'll just continue working as normal.

The point is that whatever decision I make, money would no longer be a factor in it. I will have total control of my life.