Really, the end is the most important part and in many ways it is the hardest part. The question is you now have financial independence, what are you going to do with it? Does this sound easy to answer? Are you just going to lie on the beach every day? I think you will be very surprised that when you get here, you will find that it is a big mantle of responsibility. These are the questions I ran into and I think you will have a similar experience:
Question: Come on? Do I really have enough to be financially independent?
Answer: Well, we always get back to your monthly expenses and your monthly cash flow from assets. If it meets or exceeds your monthly expenses, yes, you are financially independent.
Question: Yeah, but will it last? Come on, this covered call thing looks good and seems to be generating cash but will it continue to put money in my pocket each month?
Answer: Only time can tell. I believe that you truly have to do the covered call strategy for one to two years through both up and down markets before you truly know. Of course the author’s are going to tell you it works. It is just as it is in business. You can do all of the market research you want but you are not going to know 100% until you open the doors.
Question: Okay, should I quit my job?
Answer: I know this sounds like a bullshit answer, but that depends. Do you love your job? Is it the work that you are passionate about? Do you get yelled at every day and hate your life? And you thought you were going to just lay on the beach every day after you reached financial independence.
Truth be told, and this sounds lame, but most people will choose to continue to work after they reach financial independence. So the real question is, are you doing the work you were put on this planet to do? If not, for god’s sake, you are financially independent, it is time to seek out your ideal work. This is really the whole crux of this book and I will address that question in the next section.
Question: I do want to quit my job and pursue my passions and although I can meet all of my expenses with my cash flow, my salary is still a substantial amount. I still have a security blanket with my job. At what point do I take the leap and go after what I want?
Answer: In many ways you are now at the point where you can pursue your true passions (again, you are financially independent) and life is short, so what the hell are you waiting for? Then again, if you want to play it conservatively and you can bear your job for the time being and it does not impede you and your pursuits, then hold the job and continue to build your real work on the side. You will know when the time is right.
Question: Should I just go out and buy a bunch of toys now, reduce debt, take a vacation … what?
Answer: Certainly you should start eating out a lot more if you want, you are financially independent after all. In many ways this is really a personal question. Personally, I cannot fit any more CDs or books on my bookshelf at the moment. Are there bigger toys I would like to own? I can think of a few. Do I want a brand new Ferrari? Hell no. Remember how Warren Buffett views a fancy car purchase … over the long run via the opportunity cost, the car will cost you a million dollars, unless of course it is an antique or vintage appreciating asset. You should certainly have some nice things though … no need to not enjoy your life, live like a miser or not have the state of mind to give money away. Personally, I have also chosen to reduce debt. (remember, Warren likes businesses with low debt.)
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