What is WealthyBy40?

This first post summarises the purpose of this blog – to attain financial freedom and happiness.
 
This blog really is a challenge I’ve set for myself: I am currently 28 years old and I aim to become wealthy by the age of 40. There are many definitions of being “wealthy”, each with their own pros and cons. I will define mine as the following:
“By the age of 40 (i.e. 12 years from now on), I will attain at least 3 sources of income streams, generating a total monthly non-employment based income of £60,000 or more.”
 
Being wealthy increases the likelihood of attaining financial freedom
The connection between wealth and financial freedom are two interlinked yet drastically different concepts. Wealth is a measurement of your asset (everything you own) minus your liability (everything you owe). Financial freedom is when your total income in a given time frame (usually monthly) exceeds your total outgoing within the period.
 
Generally the wealthier you are, the higher your income will be (wealthier people own more assets, which can generate income) and the thus being wealthy increases the likelihood of attaining financial freedom.
 
However don’t be fooled. Some wealthy people live way beyond their means and thus fail to reach that freedom. I know a couple whose net worth (a synonym of wealth) is in excess of £5 million and yet their outgoing significantly exceeds their income, mainly because most of their wealth is tied up in the house they live in, which is very expensive to maintain.
 
Financial freedom is a key contributor to your happiness and well-being
The reason why I want to be financially free is because financial freedom is a key contributor to my happiness and well-being. Imagine when you wake up each morning with a crystal clear purpose in life and able to to pursue such purpose without any worries about the next mortgage / rent instalment. Imagine when you decide to fly to Bora Bora tomorrow and take a month-long vacation there because you are fed up with the British winter. You would feel pretty damn content about your life, right? The most important gift of financial freedom is the freedom of choice and that is what I intend to attain by the age of 40.
 
Good luck to me! To those of you are are kind enough to be reading my blog and would like to join me on this challenge, good luck to you all!