How to Achieve Financial Independence Spending $200K Per Year

In all my time writing this blog, I’ve avoided using a lot of concrete numbers when it comes to my own financial situation.

I’ve been hesitant to put it all out there, but with this post, the time has finally come. Right to the point, our family expenses currently total up to more than $200,000 a year.

I needed to know why, exactly, these expenses are so large. So I broke our entire budget down to figure out the biggest factors.

How to Achieve Financial Independence Spending $200K Per Year

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First, there’s the high cost of living in our area. I’m sure Miss Bonnie MD gets me on this one. Expenses directly related to housing account for roughly 40% of our total spending.

My Big Annual Expenses

Second is the fact that we hire help for childcare. Third is the cost of preschool for our children. Brace yourself; it’s over $1,600 per month.

When you combine all of these large items (plus all the other small things that come with living), it comes out to more than $200,000 per year.

Adding It All Up

As I mentioned before, I could be truly financially independent right now. However, my wife and I are not willing to do that at this point in our lives. We love where we live too much.

How I’m Making It Happen

So with that in mind, these are some of the things that play a part in my personal journey to being financially independent – even while spending more than $200k a year.

1. I have additional sources of income, preferably passive income sources. Now, “passive” doesn’t necessarily mean you’ll never have to put any work in. 

2. If necessary, I could reduce my expenses. At this point, I could downsize my house and move a little bit out of the area if needed.

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