UPDATED (22 March 2015): I have changed the linked calculator a little so that it shows the WFD for both those working from December to January and January to December. I had adjusted the text a little as a result. Enjoy!
There are two ways of being happy: We must either diminish our wants or augment our means--either may do--the result is the same and it is for each man to decide for himself and to do that which happens to be easier.... But if you are wise, you will do both at the same time.
Benjamin Franklin (1706-1790)
Those of you who--clearly not getting enough just from my blog--are also
following me on Twitter may have noticed this tweet a little while back:
The idea of "Work Freedom Day"--put forward by
Dividend Life--is really rather neat. As the name suggests, it is essentially the day when your dividend income has, of sorts, freed you from needing to work.
For example, let's say that my expenses work out as £30 per day. If in three months I earn £300 in dividend income then I have earned myself 10 days of work freedom.
On the calendar this would move the needle back to 21 December in that year. In other words, in principle this means I could stop working for the last few days of the year.
Of course, it is (like all such things) not perfect for everyone. But as a general motivational tool I think it is excellent. Indeed, I am planning to start to include the new "work freedom day" date into my monthly dividend income and trading activity updates.
I also think that it can be--with a little tweaking--a powerful tool for helping motivate and track your progress towards financial independence and that all important "crossover point". More on this later.
A little while back I wrote an article on "Work Freedom Day" and how it is a powerful method by which to increase your saving rate and decrease your expenses.