In my therapy session earlier this week, I was telling my psychologist all my grand plans for my business and the financial goals I’d like to accomplish. As I was explaining to my therapist that I have a full-time job, I blog, I’m a landlord, I’ll soon prepare taxes, and somehow manage to run my business, she became concerned that I was taking on too much. I assured her that many of my jobs could be done from home and don’t require a lot of effort. She then asked me why I work so hard, and did I ever think I’d earn enough.
This conversation could have become an in-depth philosophical discussion regarding money and my need for more of it. However, I don’t require more cash or have a goal to reach a specific salary. On the contrary, my life was simpler when I had less, and I miss those times. My goal is to get out of debt as quickly as possible, so I can have the life I really want.
I’ve been carrying a sizable amount of debt for two years since I purchased my primary residence and rental property and took out a loan to expand my business. Though I have rental income, the profits don’t make a sizable enough dent in the principal or the mortgages. Therefore, I supplement them with additional streams of income until I can sell the properties. Ultimately, while I’m single, I want to have a tiny house paid for in cash, zero debt, and a puppy.
My goal is to be completely debt-free by December 2021. This journey will require sacrifice and plenty of extra income. I realize I haven’t been sticking to my budget like I should and prioritizing my debt payoff. I know I have to get back on track to make my dream a reality. Increasing my income is just one part of the equation. The other part is reducing debt, minimizing expenses, and keeping both of those low.
How Much is Enough?
Personally, without debt, I think I could live comfortably on $50,000 annually or less. I don’t want a big house because that means more maintenance, taxes, and cleaning. The type of vehicle I drive is negotiable as long as it has good gas mileage and low maintenance costs. I spend the majority of my income on housing, traveling, and food. I’m single, and I don’t have any children, so my expenses are minimal at this point, other than my debt payments.
Will I Earn Enough?
To answer her question, I think I already earn enough in the grand scheme of things. I have a high salary and several streams of income. I’m working to make more to eliminate my debt and set up my future earnings. If I can invest well, I plan to live off my dividends. If I can make $50,000 annually in dividends with no debt payments, I should be in an excellent position for a simple life.