See also ffree ^ envy+FOMO

6 levels of ffree is one of the first articles describing the liberating self-knowledge that “I can retire now if I want to”. Financial independence is based on easy elementary math — Without salary from work, match up your family burn rate against your Savings + Income.

This elementary math has to be a projection over a long horizon, but over long term there are many uncertainties. We tend to overestimate our predictive power on medical, inflation, property depreciation … We tend to underestimate the amount of uncertainty/volatility,  black/white swans. See also NAV 一辈子花不完@@ 4 factors. Therefore, for me financial independence is really a state of mind. I often feel peaceful and reassured by mathematical projections based on

• income — rental incomes + rental spread + CPF-life .. but beware of attachment
• income — shields
• expenses — burn rate … due to detachment
• asset appreciations — Beijing, Cambodia, BGC, SG .. but beware of attachment

Actually for me, “financial independence” has a modified math definition — “without the pressure to work, match up … .” Due to the modification, my peace of mind has another pillar

• I’m capable of, and will enjoy, working till my 70’s

Q: Am I too attached?

Yes to my property assets
yes to my health, which will eventually diminish
yes to my robust career prospect, which will eventually diminish

— Q: Strip away the exaggerations, the superficial, the unfounded, what are the measurable, rock solid, real differences between me and my cohort in terms of ffree ?

• I record/reconcile my burn rate over decades, and have higher confidence in my forecast.
• I have a reliable nonwork income in cpfLife and HDB rental, not counting other rental properties.
• I often feel free to (and actually did) choose lower jobs. I don’t think many in my cohort feel that same level of freedom.
• Based on straightforward calculations and SG public data, I have no worries about medical, retirement income, long-term inflation. I think many of my cohort are not so care-free. These are big components of long-term ffree.
• — Here are some subjective assessments:
• I have no plan to save up USD 300k/child for college
• I say and feel I can stop working any time .. Statement 1
• I say both parents can stop working indefinitely and my family can live a reasonable, comfortable life .. Statement 2.
• I sometimes say that I have more money than I need for my lifetime .. Statement 3.
• ^^^ My circle of a few dozen friends never say these things. Am I serious? Yes. I didn’t say what kind of family lifestyle that Statement 2/3 entail.