How to Make a Financial Freedom\Retirement Plan

Today I am going to tell you my plan for financial freedom and why it is the better option, atleast in my opinion.

So for starters I am planning to live my life as a free man in Bulgaria- my home country. For anyone that doesn’t know Bulgaria is a fairly small country in Eastern Europe. The wages are not very high, but that wouldn’t be a problem for me when I don’t need an income from a job. The good part though is that the expenses are not very high either. Even in some instances they are ridiculously small.

A nice new apartment in the centre of the capital Sofia is going to cost you £250-300. Bear in mind that this is the most expensive option available for a location. If you prefer to go in a smaller city and would like a more quiet enviroment in cities like Plovdiv, Varna , Burgas or Veliko Tarnovo the prices for a nice apartment are anywhere between £100-£300 per month for a double bedroom apartment/house. If you want to go to the countryside you can buy a whole house outright for ridiculous amounts. I have seen huge houses in the countryside selling for as low as £5000. And lived in both Bulgaria and the UK I can easily say that the overall quality of the properties is way way better in Bulgaria then it is in England. Yes of course there are reasons for the houses selling so cheap- for example not many people live in the countyside because of the lack of jobs , but that is not going to be a concern when I am financially free and wouldn’t need a job. Also I would consider my house in the countryside as kind of a ”base” where from I will be able to go wherever I want very easily. The costs of owning a car in Bulgaria are about £200 per year for all the taxes insurances and everything related to the car. With a car you can comfortably go to the nearby Greece Croatia, Turkey or even anywhere in Western Europe if you feel like going for a longer trip. Bulgaria being between Europe Asisa and Africa makes it very easy to go to a lot of places with a plane flight.

All the rest of the expenses around the house are not more than £1200 per year including taxes, utilities, internet, TV, mobile phone plan – all together.

So to cover all my base expenses I am going to need let’s say £30,000 for a house (one time expense) + £1500 annually for recuring expenses for the house and the car. (I am making very conservative calculations on purpose, I would never make a plan where everything is on the edge, it is not the way I like doing things.)

When I take all the basic expenses out of the way it is time to adjust what kind of money I would feel good with to live my life. And remember in these expenses I don’t need to worry about rent,bills, car insurance or anything of that nature. I don’t want to bore you with calculations, but in my way of life I would feel good with £700 per month. And that does not contain living frugally in any way.

I don’t want to stress about expenses when I am financially free otherwise am I going to be really free or am I just going to battle budgets every month?

With those £700 I am going to have a bit more then what my expenses are going to be giving me the chance to save and increase my wealth even after I quit my job.

So in total I am going to need £700×12=£8,400 , but let’s say £10,000 for all my expenses annually + let’s say £40,000 upfront for a house and a car. (These calculations are extremely conservative, but as this is not a super hard number to reach I would prefer to quit my job with a peace of mind. )

Now first lets see how big of a portfolio I need to have in order to achieve those £10,000 annually. First I am going to target all my income from dividends from reliable blue chip US companies. In my opinion this is one of the safest and most passive incomes there is. I would like to target a 5% dividend yield – something not very hard to achieve if you are investing in dividend growth companies who are currently undervalued by the market. The dividend growth is going to protect me from inflation while the price appreciation is going to grow my wealth.

So I need £200,000 for my annual expenses + £40,000 upfront for a car and a house/apartment. If you have read my article https://0tofreedom.com/2019/01/05/what-it-takes-to-become-a-millionaire-with-a-1000/ you would notice that I only need to double an initial £1000 six times.

With £250,000 (not a mistake, just making it a bit more conservative once again ) I would have the freedom to do pretty much everything I would want to with all the freedom in the world. Of course I am not going to ”retire” and just stay at home all day doing nothing. I will most probably have a second income of some sort, probably internet- related.

But this income is not going to be because I need it but because I want it so I will only do something because I want to do it and not because I have to do it. I will not have to worry about bills, taxes, being late for work, waking up by an alarm every morning , questions like ”Am I going to pay my rent on time this month?”, ”Am I going to repay my debt on time? ” etc. When you think about it these are the kind of questions that occupy the average person every single day, including me at the moment.

The moment I clear these out of my head is the moment I will have so much more free time and thoughts. Living in the countryside is going to give me freedom of alot more of the stress surrounding the big cities. Things like traffic jams, grumpy people, lines everywhere are probably not one of your favourite things and neither are mine. I will still be able to go to the city for less than an hour, but that is going to be only when I actually want to, giving me more control over my decisions.

Hope you get the picture of why I want to be free as soon as I can and how is my life going to change by reaching that milestone. And hope you also understand how much easier it is going to be to ”retire” in Bulgaria then it is in the UK or USA for example. As I have lived in England for nearly 3 years now I can say that for the same kind of ”retirement” is going to cost me 5 times more the very least. It almost feels like cheating the system.

Hopefully everything I said makes sense to you as it makes enough sense for me to pursue it every single day. Of course everyone is different and some people might want to ”retire” in London or New York for example. That would need a totally different approach as you would need to be a multi-millionaire to do that.

My way is much more simple, makes life much more enjoyable and gives you much more years of freedom as you would be able to do it much sooner in life. I am currently 23 and if all goes well I don’t see a reason not to be able to retire by 30, maybe 35 years old. That is much better then having to go to work at 65. I am not a big fan of waking up by an alarm clock now, cannot imagine how would that feel after 40 years.

So that is my reasoning behind my financial freedom path and what I need to achieve it. Having a set goal and a finish line makes everything much easier and makes you much more motivated as you know why exactly are you doing whatever that you are doing.

Hope that was an interesting read to all of you and a much easier way for all of you to become financially free. Of course as I said everyone is different and this is just my personal approach. I am not saying that it is the best one, but it is the best one for me.

Thank you all for your time hope you enjoyed reading a slightly different approach to financial freedom, if you want to stay updated on my journey make sure to follow my blog.

There are some pictures of my home country as probably a lot of people have never been there or really even thought about it.

The Belogradchick Rocks in the Balkan Mountain
Bolata Beach in Black Sea
Dam Lake Vucha near my home town Plovdiv
The Ancient Roman Theatre in my home town Plovdiv

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