In June, in Echo journal I’ve read an interesting article about the perception of French about the monthly revenue and richness. Today on average, a French is considered rich if he/she reaches 5000€ net/month against 6000€ net month before the 2008 crisis. 21% consider themselves rich if they have a revenue between 1000€-3000€ and 33% between 3000€-5000€. See below the graph by ranges and the median. I have today 3000€/month and Mr Bunny 3995€ before annual taxes. We can say that living in Parisian suburb and paying a 2000€ loan for a house and about 2500€ other monthly expenses for sure we don’t consider ourselves rich and far from this. We pay attention to our expenses and we follow closely our monthly budget, as it’s very easy to cross the border and be in red at the end of the month. So even if we do not consider ourselves rich and we do not have as ultimate goal to become rich, this article allowed us to think about the ultimate question: How much is enough? The perception of richness in closely correlated with this question…If you are by nature somebody who spends a lot, for sure you will need a much higher revenue and your perception of richness will be completely different from somebody who is frugal and doesn’t spend a lot. Our objective is to quit our jobs before our 40s and start travelling and dedicate ourselves to our family and personal passions. This decision should be prepared and planned as when you are a parent you need to be also responsible for your kids and we cannot leave our jobs just because we are fed up or stressed or unhappy… Before leaving our jobs we need to know how much is enough and what we can do to get the revenues from our investments and replace the monthly salary. As you know today we have already invested in several apartments and we are starting to invest in stock options, but we are doing this not to be even richer but to replace our today’s salary with the revenue from our investments and TO BECOME FREE!!! Free to work or not to work; free to live in Paris or in Barcelona or in Helsinki or even an USA dream; free to spend time with our kids and offer them our time, which money cannot buy!!! What money can buy though, is our freedom.
As you know I’ve already shared with you our project to do monthly budget follow-up and thanks to this tracking after 6 months of rigorous excel expenses calculation I can tell you that we know How much is enough for us in order to say Goodbye to our jobs – 3500€ per month for the entire family and it’s large. What is funny with this monthly tracking, is that month-by-month we managed to reduce our spend…and do you know why? It’s simple – the more we save, the more we can invest and the quicker we can reach our goal and quit our jobs – it’s like a game. Every week we are following our budget and discuss about what we’ve done to save and invest, even if it’s 10€. You may wonder how I calculated this. In fact I calculated all the expenses that we have today and tried to identify those expenses that will disappear if we were to quit our jobs. It is very simple and the more you track, the more your plan is predictable in reachable.
“Only a dream can help you survive the rude reality”
Since we started to dream about our financial independence, track our expenses and invest, we found a lot of interesting topics to discuss in couple. This common project is a couple therapy. We are more motivated to go to work and succeed, not because we have to but because we want quicker to have a salary increase in order to save more and quicker get the financial independence –It’s a game. We are less stressed as we know that we are not afraid to lose our jobs and we have already a minimum today to survive from our actual investments – How pleasant can it be to be able to tell your BOSS that you disagree and not be afraid of losing your job. Since we starting this blog I can say that we are both more successful in our jobs and we are less stressed and smile more often, while we delivering a higher quality work. It’s simple, when you know that you have to work for another 40 years to get your retirement your motivation will be different from ours, our plan is to work a few more years by giving the maximum of ourselves and we will retire soon. How soon? As soon as we have reached a passive income superior to the amount as per our understanding of ‘How much is enough?’
Just try and you will see that this is like a child game 🙂
And you, in which range are you today? Do you agree with the below analysis.