I came across this interesting person's site: www.scotthyoung.com
And I kind of like one of the points he raised, in his take on the three aspects to financial freedom. Let me just brutally copy and paste his writing here:
A Low Poverty Threshold
The poverty threshold is a term I use to describe the minimum amount of money you need to enjoy a comfortable life. Some people require $70,000 per year for comfort. Other people need less than $10,000.
A low poverty threshold means you could be perfectly content with a bare minimum of material conveniences. If all your savings were stripped from you, and your income was reduced by 80%, could you still enjoy yourself? Or would you be miserable having to adjust to a lower level of income.
Your poverty threshold is psychological. It’s not about actually having to survive poverty. Having a low threshold simply means you’d be willing to sacrifice more to make bigger changes. For example, iimagine your poverty threshold was roughly $50,000 per year. If you had the opportunity to switch to a more exciting career, but the starting pay was only $40,000, you wouldn’t be able to make the switch. A lower threshold is freedom.
Building a low poverty threshold is about occasionally conditioning yourself to go without. Go an entire week without spending any money. Travel for a month and stay in hostels instead of nice hotels. Go without your car for a month.
Experiencing mild poverty in small doses allows you to lower your threshold. It’s just like dipping your feet in a lake to get used to the cold water. Occasional splashes keep you from being afraid to dive in when you need to.
I think this last element of financial freedom is the one most away from current advice being given today. It has nothing to do with money, but entirely your mental disposition towards money.
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This point actually reminds me of Paul's saying:
I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.
And I imagine Paul paused for a moment, before he took a long meaningful breath and said the following with perfect conviction:
I can do everything through him who gives me strength.
- Phil 4:12-13
And that.. my friend.. is freedom... Hallelujah!
And I kind of like one of the points he raised, in his take on the three aspects to financial freedom. Let me just brutally copy and paste his writing here:
A Low Poverty Threshold
The poverty threshold is a term I use to describe the minimum amount of money you need to enjoy a comfortable life. Some people require $70,000 per year for comfort. Other people need less than $10,000.
A low poverty threshold means you could be perfectly content with a bare minimum of material conveniences. If all your savings were stripped from you, and your income was reduced by 80%, could you still enjoy yourself? Or would you be miserable having to adjust to a lower level of income.
Your poverty threshold is psychological. It’s not about actually having to survive poverty. Having a low threshold simply means you’d be willing to sacrifice more to make bigger changes. For example, iimagine your poverty threshold was roughly $50,000 per year. If you had the opportunity to switch to a more exciting career, but the starting pay was only $40,000, you wouldn’t be able to make the switch. A lower threshold is freedom.
Building a low poverty threshold is about occasionally conditioning yourself to go without. Go an entire week without spending any money. Travel for a month and stay in hostels instead of nice hotels. Go without your car for a month.
Experiencing mild poverty in small doses allows you to lower your threshold. It’s just like dipping your feet in a lake to get used to the cold water. Occasional splashes keep you from being afraid to dive in when you need to.
I think this last element of financial freedom is the one most away from current advice being given today. It has nothing to do with money, but entirely your mental disposition towards money.
******************************************************
This point actually reminds me of Paul's saying:
I know what it is to be in need, and I know what it is to have plenty. I have learned the secret of being content in any and every situation, whether well fed or hungry, whether living in plenty or in want.
And I imagine Paul paused for a moment, before he took a long meaningful breath and said the following with perfect conviction:
I can do everything through him who gives me strength.
- Phil 4:12-13
And that.. my friend.. is freedom... Hallelujah!
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