Initially, I was planning to live-better by 40 years old. However, my wife mentioned it will be sad for my child to go infant care > childcare > daycare (during primary school), so we decided that one of us will do freelance or part time at 37 year old when my child turns primary 1. This will allow us to pick her up after school and spend more time with her. I proceed to work out my finance and think that it is possible.
From time to time, I asked myself why are we not starting to live-better now? If only finance allows. So, I reviewed and reviewed again.
My financial security (Basic Lifestyle) - End of this year; 33 years old
My wife and my financial independence (Current comfortable lifestyle) - 36 years old
As you can see, my comfortable current lifestyle and my minimum lifestyle are not that different. The difference is actually family related expenses and not personal. For example, budgets for yearly vacation and weekly restaurant meals. I am enjoying every part of my personal and family life.
This is assuming I have not unlocked my premium BTO flat that is beside a MRT. If I have unlocked my premium flat value:
Our financial independence (Current comfortable lifestyle) - 34 years old
Major setback: We are paying mortgage via CPF and if I stopped working, I have to pay my portion via cash or my wife CPF have to cover my shortfall.
With all planning, it is always good to be prudent. So, I have left some buffer which is beyond my financial independence needs:
1) only 2.5% interest for my fund
2) $0 income after financial independence
3) Didn't include CPF life into my live-better fund
4) Assume my child will not provide a single cent to me
5) Not going to downgrade our 4 room HDB flat
6) Not cutting down on lifestyle at any point of time
I think with these cushioning, my finance should be sound enough. In addition, my wife enjoyed her work and may work till 42 years old, to provide more buffer for the family. I am ready to move to walking distance to her workplace any time to support her career and give her more time and convenience.
So when am I going to stop full time employment and live-better? It should be between 34 years old and 37 years old. My gut-feel is 34 to 36 years old. So, the earliest is end of next year.
In addition, I would like to continue generating income by doing 15-20 hours of freelance per week.
What is my secret? My wealth comes from knowing how little it takes for me to enjoy life, be calm and contentment. On the contrary, my wealth don't come from accumulate materials that don't value-add to my life.
Anyway, if you are wondering what is my routine lifestyle of live-better, here is a preview of a possible weekday:
> go for a swim or jog > have an enjoyable slow breakfast and high tea > write a little/do some house chores/do a bit freelance > prepare/eat lunch with my wife > pick up my child > spend time with my child > prepare dinner for my family > watch a drama/enjoy slow walk/chit chat > rest
I will plan outdoor activities during weekdays when most people are away at work and stay at home when most people are not working.
Of course, some of the activities may have variations on a daily basis and every life stages will evolve slightly too, which are part of my plans.
What are your secrets to live-better?
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