SkyHigh

My favorite book in college was Henry David Thoreau's "Walden". I especially liked his thoughts about living financially independent. Another good book is "Five Acres and Independence" Much of my focus since then has been on how to recreate a modern "cabin in the woods" like Thoreau did.

Though today we can't just squat on a vacant piece of land and live on soy beans we can recreate a similar situation even in the city. In my case I decided that rental housing would be my garden and a four plex would be my cabin. Instead of buying a starter house I bought a four plex instead. I lived in one of the units and rented all the rest. The proceeds paid me a small sum and I got to live in my unit for free.

As a pilot it is often difficult to accumulate the assets required for such an endeavor due to the nature of the job. The constant travel, moving and low wages make it difficult to get the financial momentum needed. In fact it seems that the profession leads to employment dependency more than most, though financial independence is still attainable. However, it takes a lot of sacrifices up front and a different mindset.

My advise is to start by reading Henry David Thoreau's "Walden, or my life in the woods".

Skyhigh

HercDriver130

how about this...spend LESS than you make.... save and invest the rest!!!

Ski Patrol

The problem with that notion (although I agree with it) is that pilots (in general) are poor for so long. By the time a pilot reaches a professional wage, they are aching to buy a piece of that american pie and upgrade, upgrade, upgrade.

bryris

The condo thing sounds smart. I bought a house right before the economy dumped and lost $30,000 in value. Unrealized losses as the moment, but it still hurts. The vast majority of household income right now (with me not working) is going towards mortgage interest. Horrible situation!

Rascal

How does one go about when your are getting paid $1300 after taxes? I am not in this situation but I do have Friend from ERAU with $1200 monthly payments on his student loans. Not everyone makes as much as you do.

flynavyj

I feel for anyone who's making a house payment worth of student loans. Diversifying yourself can't be a bad idea for anyone in any situation, if you can find away that your investment (or liability) could make money for you, more power to you. Works for a great situation of you not "needing" income to pay the rent, as long as you keep your properties full. The way things are right now, i've seen several full apartment buildings being sold off in St. Louis County (my old neighborhood that the airport put a runway through). I'd assume the rent is dirt cheap (close to airplanes) and so is the property, which would lend me to believe it'd be very easy to rent it till St. Louis city buys it for noise abatement, infact, best bet would be buy it, and start writing the city commisioner the day off, trying to get him to rehab the place w/ new noise proof windows, etc, let that drive up the value of the unit, and make them pay you the pretty penny when they buy it back a few years down the line.

waflyboy

Sounds interesting. Picking it up at the library today.

SkyHigh

It is a bit more than that but spending less is an important part. Pilots usually know to much about spending less.

Skyhigh

SkyHigh

Thoreau is more about philosophy and the study of nature then actual financial planning but is is a good read non the less.

Skyhigh

SkyHigh

Financial independence means reaching a point in your life where you do not have to worry about money. Your income is completely independent from working for others and usually is the product of financial instruments or real estate investment.

As the pilot profession has gotten worse and worse I began to become increasingly uncomfortable with putting my head in the noose of an aviation career. Originally I saw aviation as a companion to my goals of financial independence however it began to become obvious that it was becoming more of an obstacle. A key component is to be able to utilize your spare time. Most of mine was being spent in a hotel room while I paid others to mow lawns and make repairs.

A path to financial independence needs to build momentum over time. Professional stability and becoming established in one area is important. Flying had me on the move every 6 months to three years. It is very difficult to get anything going when you are expecting to have to move all the time.

Eventually a lay off pushed me out onto the street and I was able to get going in the right direction. I still have a ways to go but I am on the right path. As our national economy continues to change over time I believe that everyone will begin to develop an urgency to work towards FI. Careers just can not provide what they use to. Retirement funds need to last much longer then in previous generations.

Skyhigh