The following text is a rewrite in English of a text I previously wrote in Japanese.
The first major obstacle and goal when aiming for financial freedom, FIRE, or semi-retirement is to achieve 10 million yen in financial assets.
The age at which you break through 10 million yen in financial assets will determine the fate of your subsequent achievement of financial freedom.
With the development of the Internet, we often feel as if the best people are right around us.
As usual, when you Google successful people in their twenties, you tend to think that this is the standard, but in reality it is not.
The reality in Japan is that in your twenties, it’s not enough to have 10 million yen, it’s enough to have 2 million yen, and that’s enough to be in the top 50%.
When I achieved 10 million yen in financial assets at the age of 25, I saw the world around me a little differently, so I will write about that below.
First of all, people in their 20s with 10 million yen in financial assets are rare.
With the development of the Internet, we often feel as if there are excellent people around us.
As usual, when you Google successful people in their 20s, you tend to think that this is the standard, but it is not.
I simply felt a sense of accomplishment when I crossed the 10 million yen mark.
After all, eight digits have a greater impact than seven digits.
I felt a strong sense of accomplishment the moment the digits changed.
If I had to compare it to a video game, I would say it’s like when you go from level 99 to level 100.
It reminded me of the time when I raised my Barkhun’s level to 100 in Pokemon Gold and Silver. I miss it: ・・・・・・
I also feel the same sense of accomplishment as I do when I write in my diary every day.
I’ve already developed the habit of only investing money in things I need.
When I surpassed 10 million yen in financial assets, I began to feel that if I continued at this rate, I would be able to reach the next 20 million yen sooner.
However, if you think about it, 20 million yen is twice as much as 10 million yen.
If you don’t invest, I think it would not be strange to feel that it would take you as long to achieve 20 million yen as it did to go from 0 million yen to 10 million yen.
However, since I have been optimizing my life in the process of achieving 10 million yen in financial assets, I have already developed the habit of only investing money in things that I need.
Even if I pass by a convenience store or see a delicious looking snack, it can no longer tempt me.
Even if I see a loaf of bread that looks good, I can pass it by and say, “But I don’t need it right now.
This is a simple thing, but I think it’s amazing.
Probably, during the process of achieving 10 million yen in financial assets, you will find yourself saying to yourself
“Is this really necessary for me?
“Should I pay for this now, even if I have to postpone achieving financial freedom?
“Is there a better way to buy this than here and now?
I think I became able to do this naturally because I kept thinking about each purchase action in the form of (1) necessity, (2) cost acceptability, and (3) availability of alternative means.
Because I was able to make these decisions on an unconscious level, I was able to feel that the achievement of 20 million yen was not far in the future.
I believe that this mindset of saving and frugality has been refined partly because I played a financial literacy educational game called Cash Flow Game.
The significance of my achievement of 10 million yen in financial assets is not limited to simply acquiring financial assets as tangible assets.
The ability to make decisions based on decision-making criteria for how to spend money, and to use this ability on an unconscious level, is a lifelong skill that I have developed.
This is a skill that is not easily acquired by those who have acquired large sums of money through inheritance or lotteries without much effort.
It made me realize that I had acquired the capacity to manage money with my own hands.
In a society permeated by a monetary economy, the way a person uses money is a reflection of who they are.
The way a person spends their money can tell you a lot about who they are.
I aim to have as high a savings rate as possible, as shown below.
The higher the savings rate, the fewer years you need to reach financial freedom.
I have gained the peace of mind that I can always buy more.
You’ve achieved 10 million yen in financial assets, and you now have the peace of mind.
Are there people around you who say the following things?
I want a new car, I want a new apartment, but it’s going to cost a lot of money, so I have to work hard to save up so I can buy it.
How many of these people really want to buy a new car or a new apartment?
Let’s say you actually managed to buy a new car or a new apartment after saving up.
How long will that feeling of satisfaction last?
You may feel a sense of happiness and accomplishment only at the moment of purchase, but will that feeling last?
What the person really wanted was to be able to afford a new car or a new apartment, which only rich people can afford.
People who can afford to buy a new car or a new apartment at any time would not buy these things for no reason.
This is because as long as you have enough assets to buy them at any time, you can practically procure a new car or a new apartment from the market at any time, and you feel as if you already own them.
When I myself reached 10 million yen in financial assets, I felt as if I could purchase any small amount of money at any time, so I felt as if I had the status of being able to acquire any item at any time, which gave me peace of mind.
Also, I have enough money to defend my lifestyle, so perhaps that has helped me maintain a sense of comfort.
10 million yen in financial assets is just a passing point.
Having said that, it is also true that the things you can buy with 10 million yen are still limited.
It is also a fact that the wealthy are far from being able to afford it.
It can be said that they are only getting a small piece of freedom.
I would like to continue to steadily collect “pieces of freedom” in the form of financial assets, thinking that when the dust settles, it will be ・・・・・・.
In a small way, I feel that I am beginning to see a path to what I hope to obtain by achieving financial freedom.