I had another discussoin last night with my wife about REI, and while the outcome deflated my desire to continue, it hasn't in any way flattened it. Our conversation this time focused on our ideals for my venture (notice its our ideals and my venture). All along, my general goal for doing REI was to invest, make money, reinvest, make more money, reinvest, make even more money, etc., so that in a year (or two or three), I could quit my JOB and concentrate solely on REI. Then I would continue the venture to a point where my passive income from REI would exceed the expenses accrued for my family.
My wife has a different idea.
My wife feels our - our?, I mean my - venture's profits will go toward paying of our debts. In other words, whatever income is produced from REI will go to pay down/off our credit cards balances, my student loan, our car loan, etc. I can understand her thinking as this is how I and everyone else was trained to believe. The only problem I have with her way of thinking is that once things are paid down (or off completely), it is an ever more reason to spend. Unfortunately, she is one of those people who believes that money is for spending - not saving, and definately not investing (that's what my 401k is for, she tell you). And as long as she continues to feel and act this way, I will never reach my two goals (quit my JOB and financial freedom).
Of course, the first thing people will comprehend from what I've said is that divorce is on the horizon, which I'll respond with a humorous NO. While it is yet another barrier I need to start knocking down, it will not be something that will become a wedge in the marriage. I have slowly taken her from total nonreceptiveness about REI to a level of acceptance. So to will her perception of how the business will be ran. and that is how I am approaching it - as a business. It isn't a paycheck I get from working a JOB. Its a venture on the side whose financials are to be kept seperate from our personal finances (at least for the time being).
Oh how much easier this would be, if only ...
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2 comments:
I have to admit paying off credit cards, student loans and auto loans is imperative if your ultimate goal is financial freedom. Too much of our money will be wasted on interest.
If your wife likes to spend, that's another issue.
Saving is huge.
Good Luck
Dozer
I agree wholeheartedly.
I used to be a big proponent of paying debt off first, and then think about investing. The perceived flaws with that reasoning are: (1) realistically, getting debt free can easily turn into a cyclical goal that may never happen (i.e., pay down/off debt and build it back up, which seems to be my wife's thinking - argh!), and (2) having debt is not such a bad thing as long as the majority of the debt is good debt. I read recently where something like 90% of the wealthy people still pay on loans for their properties. A lot of people will tell you to pay off your mortgage as quickly as possible, but that may not always be a best idea. My student loan, for example, I consider good debt. It carries a 3.59% rate currently, but I have probably earned a 500% return on the 'investment' already!
But I agree that to be financially independent, we will need to reduce our debt such that the passive income from our investments (far) exceed our expenses and debt. That is the only way to be truly financially free.
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