{"id":174483,"date":"2024-06-24T14:32:22","date_gmt":"2024-06-24T20:32:22","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=174483"},"modified":"2024-09-03T02:54:42","modified_gmt":"2024-09-03T08:54:42","slug":"the-freedoms-that-make-the-perfect-life","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/the-freedoms-that-make-the-perfect-life","title":{"rendered":"The 4 Freedoms for the Perfect Life and How to Create Each"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm\/?e=BIGPOC6730203195\" width=\"100%\"><\/iframe>\r\n  \n\n\n\n\n<p><span data-preserver-spaces=\"true\">Most people drift along life\u2019s current. They work 9-5 jobs, <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.northamerican.com\/infographics\/where-they-grew-up\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">live within 30 miles<\/span><\/a><span data-preserver-spaces=\"true\"> of where they grew up, and don\u2019t change careers often, if ever.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There\u2019s nothing inherently wrong with any of that\u2014if you\u2019ve considered all your options and <\/span><span data-preserver-spaces=\"true\">then<\/span><span data-preserver-spaces=\"true\"> intentionally chose that lifestyle. The problem, of course, is that most people living that lifestyle just fell into it.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I love <\/span><span data-preserver-spaces=\"true\">the notion of<\/span><span data-preserver-spaces=\"true\"> lifestyle design, but it suffers from a bad \u201cbrand\u201d image. <\/span><span data-preserver-spaces=\"true\">People either find it pretentious or <\/span><span data-preserver-spaces=\"true\">they<\/span><span data-preserver-spaces=\"true\"> don\u2019t understand what it means. <\/span><span data-preserver-spaces=\"true\">But it<\/span><span data-preserver-spaces=\"true\"> simply means choosing every aspect of your life proactively and intentionally.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">So let\u2019s scrap that term for today and instead <\/span><span data-preserver-spaces=\"true\">dig into<\/span><span data-preserver-spaces=\"true\"> four types of freedom that most of us want and how to achieve them.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Financial Freedom<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">This<\/span><span data-preserver-spaces=\"true\"> is the big one. It is so big<\/span><span data-preserver-spaces=\"true\">, in fact,<\/span><span data-preserver-spaces=\"true\"> that we have to address it first, even though it <\/span><span data-preserver-spaces=\"true\">really<\/span><span data-preserver-spaces=\"true\"> belongs last.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There are a few ways to think about financial freedom. You can think of it synonymously with financial independence (FI): the ability to cover your living expenses with passive income from investments. <\/span><span data-preserver-spaces=\"true\">Everyone on Earth shares this goal\u2014it&#8217;s how we fund our lives in retirement<\/span><span data-preserver-spaces=\"true\">, after all<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">But that\u2019s too big <\/span><span data-preserver-spaces=\"true\">of<\/span><span data-preserver-spaces=\"true\"> a goal for most of us to <\/span><span data-preserver-spaces=\"true\">wrap our heads around in our day-to-day<\/span><span data-preserver-spaces=\"true\"> lives, which is why so few people pursue FI at a young age. <\/span><span data-preserver-spaces=\"true\">It takes<\/span><span data-preserver-spaces=\"true\"> a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/benefits-of-a-high-savings-rate\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">high savings rate<\/span><\/a> <span data-preserver-spaces=\"true\">for the average person to achieve<\/span><span data-preserver-spaces=\"true\"> within a decade or two.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Consider another, shorter-term <\/span><span data-preserver-spaces=\"true\">way to think about<\/span><span data-preserver-spaces=\"true\"> financial freedom: the ability to cover your living expenses free from financial stress.<\/span><span data-preserver-spaces=\"true\"> That goes beyond clocking into a 9-5 and living on a budget.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">It means having multiple <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/income-streams-you-can-combine-to-quit-your-job\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">streams of income that you control<\/span><\/a><span data-preserver-spaces=\"true\">. <\/span><span data-preserver-spaces=\"true\">For me,<\/span><span data-preserver-spaces=\"true\"> that includes my business, SparkRental, and passive real estate investments that generate <\/span><span data-preserver-spaces=\"true\">income<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Our investment club gets together every month and goes in together on new passive real estate investments. That lets us <\/span><span data-preserver-spaces=\"true\">each<\/span><span data-preserver-spaces=\"true\"> invest small amounts in many projects for diverse passive income streams.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Short-term financial freedom also means being able to change jobs or careers at any time. It means not living paycheck to paycheck. And ideally, it means being able to take full advantage of the other three types of freedom.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Location Freedom<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">When you can earn money remotely, you can live anywhere <\/span><span data-preserver-spaces=\"true\">in the world<\/span><span data-preserver-spaces=\"true\">. I should know\u2014I\u2019ve been doing it since 2008 and have lived on four continents. I currently spend most of the year in Lima, Peru.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">When you can earn money from anywhere in the world, it frees you up to travel<\/span><span data-preserver-spaces=\"true\">, of course<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> But it also frees you <\/span><span data-preserver-spaces=\"true\">to intentionally choose your ideal home city<\/span><span data-preserver-spaces=\"true\">.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Perhaps you\u2019d <\/span><span data-preserver-spaces=\"true\">choose to<\/span><span data-preserver-spaces=\"true\"> live in another state or country where each dollar stretches further. I live a comfortable, even luxurious lifestyle on a modest budget (under $50,000\/year) in South America.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Perhaps you\u2019d ditch the high taxes in your current state in favor of a <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/are-high-tax-rates-forcing-americans-to-move\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">lower-cost state<\/span><\/a><span data-preserver-spaces=\"true\">. Or skip most income taxes altogether by moving overseas and taking advantage of the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.irs.gov\/individuals\/international-taxpayers\/foreign-earned-income-exclusion\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">foreign-earned income exclusion<\/span><\/a><span data-preserver-spaces=\"true\">. Or you could move to live closer to loved ones.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">The point:<\/span><span data-preserver-spaces=\"true\"> You make an intentional choice where you want to live out of all 200 countries in the world.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">3. Time Freedom<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">Whoever said that 9-5 was the ideal work schedule? Maybe you\u2019d rather work 7-3 or 11-7 or <\/span><span data-preserver-spaces=\"true\">work<\/span><span data-preserver-spaces=\"true\"> a few hours before your kids wake up and then another few hours when they\u2019re napping or have gone to bed.<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">For that matter, maybe you\u2019d rather work 55 hours one week and 25 the next.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Or imagine taking a \u201cred month,\u201d where you cross through that page in the calendar with a giant red marker and say, \u201cI\u2019m not available this month; schedule all my calls for the following month.\u201d&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I took a red month <\/span><span data-preserver-spaces=\"true\">in December 2022<\/span><span data-preserver-spaces=\"true\">, traveling around Patagonia with my wife and daughter.<\/span><span data-preserver-spaces=\"true\"> We hiked around Fitz Roy in El Chalt\u00e9n, saw the Perito Moreno glacier in El Calafate, tasted wines in Mendoza, and ate at amazing steakhouses in Buenos Aires.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Time freedom involves <\/span><span data-preserver-spaces=\"true\">being able to earn<\/span><span data-preserver-spaces=\"true\"> money on your own schedule. That could mean owning your own business, <\/span><span data-preserver-spaces=\"true\">or it could mean<\/span><span data-preserver-spaces=\"true\"> doing freelance or other self-employed work<\/span><span data-preserver-spaces=\"true\">. Or it could just as easily be negotiated<\/span><span data-preserver-spaces=\"true\"> with an employer.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">4. Work Freedom<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">If money didn\u2019t matter, what kind of work would you do? In other words, what\u2019s your ideal <\/span><span data-preserver-spaces=\"true\">work<\/span><span data-preserver-spaces=\"true\">?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Sure<\/span><span data-preserver-spaces=\"true\">, for some<\/span><span data-preserver-spaces=\"true\">, that might mean taking a $40,000 pay cut.<\/span> <span data-preserver-spaces=\"true\">But<\/span><span data-preserver-spaces=\"true\"> for others, it might only mean taking a $5,000 to $10,000 pay cut.<\/span><span data-preserver-spaces=\"true\"> You could bridge that gap through better budgeting, taking on a fun side gig, or adding <\/span><span data-preserver-spaces=\"true\">some<\/span><span data-preserver-spaces=\"true\"> passive income from investments. <\/span><span data-preserver-spaces=\"true\">More likely, it would<\/span><span data-preserver-spaces=\"true\"> be a combination of two or even all three of those strategies.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Too many people in the <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/the-dirty-little-secret-of-the-fire-movement-and-why-its-good-news\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">FIRE movement<\/span><\/a> <span data-preserver-spaces=\"true\">slave<\/span><span data-preserver-spaces=\"true\"> away trying to reach <\/span><span data-preserver-spaces=\"true\">full<\/span><span data-preserver-spaces=\"true\"> financial independence, dreaming of a life on the beach. But here\u2019s the reality: Everyone who retires young goes back to work. There\u2019s only so long you can sit on a beach sipping daiquiris.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Yes, everyone goes back to work\u2014but they do so on their <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> terms. <\/span><span data-preserver-spaces=\"true\">That\u2019s great news for <\/span><span data-preserver-spaces=\"true\">you,<\/span><span data-preserver-spaces=\"true\"> because it means you can <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/financial-freedom-at-the-lowest-barrier-of-entry\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">skip all those years<\/span><\/a><span data-preserver-spaces=\"true\"> of <\/span><span data-preserver-spaces=\"true\">slaving<\/span><span data-preserver-spaces=\"true\"> and scrimping, and you can <\/span><span data-preserver-spaces=\"true\">just<\/span><span data-preserver-spaces=\"true\"> make the career shift now.<\/span><span data-preserver-spaces=\"true\">&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">After interviewing dozens of people who reached financial independence<\/span><span data-preserver-spaces=\"true\">, I\u2019ve noticed a pattern<\/span><span data-preserver-spaces=\"true\">.<\/span><span data-preserver-spaces=\"true\"> Yes, they <\/span><span data-preserver-spaces=\"true\">go back<\/span><span data-preserver-spaces=\"true\"> to work, but they incorporate all four of these freedoms.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">Combining the Four Freedoms for Your Dream Life<\/span><\/h2>\n\n\n\n<p><span data-preserver-spaces=\"true\">I don\u2019t consider myself financially independent. I couldn\u2019t afford to sit on a beach for the rest of my life doing nothing at all. And that doesn\u2019t matter one bit because I\u2019m living the exact same lifestyle that I\u2019d be living if I were already FI.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">I do work I love, on my <\/span><span data-preserver-spaces=\"true\">own<\/span><span data-preserver-spaces=\"true\"> schedule, from anywhere in the world, and I don\u2019t worry about bills or my next paycheck. I have all four freedoms, which means I have <\/span><span data-preserver-spaces=\"true\">full<\/span><span data-preserver-spaces=\"true\"> control over my life.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">Start with brainstorming your ideal work. Then start researching how <\/span><span data-preserver-spaces=\"true\">you could<\/span><span data-preserver-spaces=\"true\"> start doing that work, with time and location freedom. Only after writing out this ideal lifestyle should you allow yourself to look at the financial side of the equation. How much could you earn? Is that enough to cover minimal living expenses in your dream city, state, and country?&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">If not, start looking at ideas to supplement your income. Research fun side hustles that allow location and time freedom. <\/span><span data-preserver-spaces=\"true\">Invest <\/span><span data-preserver-spaces=\"true\">for<\/span><span data-preserver-spaces=\"true\"> passive income streams. <\/span><span data-preserver-spaces=\"true\">We<\/span><span data-preserver-spaces=\"true\"> aim for high returns on <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.biggerpockets.com\/blog\/gaining-financial-freedom-using-long-and-short-term-rentals\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">passive real estate investments<\/span><\/a> <span data-preserver-spaces=\"true\">in our Co-Investing Club<\/span><span data-preserver-spaces=\"true\">, typically 15% or higher. <\/span><span data-preserver-spaces=\"true\">And we<\/span><span data-preserver-spaces=\"true\"> go in on them together, so each member can invest small amounts.<\/span><span data-preserver-spaces=\"true\"> I own fractional shares in dozens of properties across the country.&nbsp;<\/span><\/p>\n\n\n\n<p><span data-preserver-spaces=\"true\">There\u2019s no right or wrong ideal lifestyle\u2014it\u2019s unique to you. But chances are, it involves all four <\/span><span data-preserver-spaces=\"true\">freedoms,<\/span><span data-preserver-spaces=\"true\"> and a healthy dose of passive income from investments.<\/span><\/p>\n\n\n\n    \n  <div id=\"visibility-group-block_25d8c4323693cc41ebca875f01185045\" class=\"visibility-group  hidden\">\n        \n\n<div id=\"hero-block_fd33562e44144a6c62f549d24d7424d0\" class=\"first:mt-0 hero-block py-4  alignwide   has-background has-theme-gold-light-background-color has-text-color has-theme-gold-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<p class=\"has-theme-gold-color has-text-color has-large-font-size\" style=\"font-style:normal;font-weight:800\">Get the Best Loan Today<\/p>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-slate-900-color has-text-color\" style=\"font-size:16px\">Find trusted, <em><strong>investor-friendly<\/strong><\/em> lenders who specialize in your strategy. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div id=button-custom-event-block_1afc0b09758a4e0b5b42bd221d90f863 class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/business\/finder\/lenders\" x-on:click=\"window.analytics.track(&#039;Blog Block | B2C Marketplace Lender Finder&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/the-freedoms-that-make-the-perfect-life&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-gold-background-color has-text-color has-white-color\" target=\"_blank\">Find a Lender<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n                <div class=\" first:mt-0 relative h-full lg:flex lg:items-center\">\n            <img decoding=\"async\" class=\"object-cover w-full relative z-20 my-0  rounded-md hidden lg:block\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/08\/Marketplace-Blog-Blocks-Lender-v3.png\" alt=\"investor friendly lender, investor friendly real estate loans\" title=\"\">\n        <\/div>\n            <\/div>\n<\/div>\n\n  <\/div>\n  \n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n    \n  <div id=\"visibility-group-block_64dd31c79f00f\" class=\"visibility-group  \">\n        \n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div id=\"hero-block_64dd2875dba9d\" class=\"first:mt-0 hero-block py-4    has-background has-slate-100-background-color has-text-color has-theme-slate-color\">\n    <div\n        class=\" flex flex-wrap lg:flex-nowrap max-w-screen-xl mx-auto px-4 relative lg:items-center \">\n\n        <div class=\"relative z-30 w-full \">\n            <main class=\"py-4\">\n                \n\n<h3 class=\"wp-block-heading my-0 tracking-tight font-extrabold has-theme-slate-dark-color has-text-color has-large-font-size\">Join the community<\/h3>\n\n\n\n<p class=\"my-3 md:my-5 lg:my-8 has-theme-slate-color has-text-color\" style=\"font-size:16px;font-style:normal;font-weight:400\">Ready to succeed in real estate investing? Create a free BiggerPockets account to learn about investment strategies; ask questions and get answers from our community of +2 million members; connect with investor-friendly agents; and so much more. <\/p>\n\n\n\n<div id=button-custom-event-block_64dd2888dba9e class='button-custom-event'>\n      <a href=\"https:\/\/www.biggerpockets.com\/signup\" x-on:click=\"window.analytics.track(&#039;Blog Block | Acquisition | Free Membership Signup&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/the-freedoms-that-make-the-perfect-life&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\">Sign Up<\/a>\n  <\/div>\n\n            <\/main>\n        <\/div>\n\n            <\/div>\n<\/div>\n\n\n<div style=\"height:10px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n  <\/div>\n  <\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>We all want these four basic freedoms in some way. Here&#8217;s how to earn them.<\/p>\n","protected":false},"author":158586,"featured_media":174485,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[7398,7119],"tags":[],"class_list":["post-174483","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-retirement","category-biggerpockets-daily"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/174483","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/158586"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=174483"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/174483\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/174485"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=174483"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=174483"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=174483"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}