"The CONSUMPTION is everywhere. It's all around us, even in this
very room. You can see it when you look out your window or
when you turn on your television. You can feel it when you
go to work, when you go to work, when you pay your taxes.
The CONSUMPTION is the world that has been pulled over your eyes,
to blind you from the truth. You are a slave, Neo.
Like everyone else, you were born into bondage,
born into a prison that you cannot smell or
taste or touch. A prison...for your mind....Unfortunately,
no one can be..._told_ what the CONSUMPTION is...you have to see
it for yourself."
-Plagiarized from the Matrix (Thanks Morpheus)
Credit cards, mortgages, car loans, student loans, etc. is just another way to make sure you can't wander off the plantation. Here's the crazy thing. You have the option not to be a slave and yet you gleefully accept the social contract. You think all this shit makes you happier, when in reality you're just digging your own grave.
In a recent article Nassim Taleb explores this not so modern problem with an article at evonomics.com.
Solution: HOW NOT TO BE A SLAVE
Everything you spend above the basic needs of life makes the chains around your wrists that much stronger. Every dollar you spend. Every unnecessarily payment you acquire. Every dollar of debt just adds locks to chains. I'm not saying you can't buy these things. I'm just saying that you can if you're not a slave. How do you not be a slave? It's called "fuck you money". Living your life in the position of fuck you enables you to tell whoever you want to fuck off. It's the most beautiful and heightened level of mental stimulation you can reach. Maslow has nothing on fuck you money!
Here's the equation: monthly expenses < passive income
That's it. That's all you need to know. The more you spend on frivolous shit that you don't need the greater your monthly expenses and the less you can devote to building passive income.
1. Only spend money on needs.
2. Try to reduce the amount of money you spend on those needs.
3. Use as much money as you can to pay off debts.
4. When debt is paid off take that money and invest it to create passive income.
5. When passive income is higher than monthly expenses, walk into your boss's office and tell him to go fuck himself. Or herself...
Experiment: DRY RUN
Now before tell your boss to go fuck himself and lick his own balls while he's doing it (visualize that), test out how well your expenses and income actually work for a year. Live off of nothing but your passive income for a year to make sure you can do it. This has two benefits.
1. It gives you a real life experiment to make sure you didn't forget something.
2. It allows you to save 100% of your current income as a cushion in case something major happens your first few years of freedom.
If you think all of this is too hard. No problem. That cotton won't pick itself. Get to it!