The income factor is not the only variable
As an aside, financial independence (or F.I.) is a goal of many people pursuing simplicity. Not so that they can afford more stuff, but so that they can be free from the corporate rat race. When you reduce your reliance upon others for your livelihood, you reduce the complexities in your life - as most people don't have the same goals as you have. The good life for most people involves generous amounts of money, not more time with their families. (Most people won't say this aloud, but if you look at our societal structure, it is obvious.) Achieving FI on a modest income, though, isn't for the unimaginative. It takes some creativity.
FI is when your passive income exceeds your expenses. Common practice is to do all you can to maximize your income, but there is another way. There are only two variables in the equation (income and expenses), yet people often think that the income factor is the only variable. It's not. Reducing your expenses is also a variable, and if you think of it this inverse way, the gap between the two is a lot smaller.
In my opinion, it is easier to reduce your expenses than it is to generate more capital. (For diehards, the deprivation is a game and brings satisfaction, not a sense of woe. "Look kids! A jump rope made out rolled, tied garbage bags! Woohoo!") Plus, reducing your need for stuff is more in line with living simply. Generating more income without scrutinizing your outflow often leaves you on a hamster wheel that is difficult to get off.
posted by Crystal Paine at 1:38 PM
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