Are we there yet? Dividend Lover Finacial Freedom Self Test

We all dream of the day when we can finally quit the rat race, so here is my universal test for are you there yet or not.

Say you quit your day job. That means your salary will stop. You are claiming that you would be able to live a certain life style using a standard you see as acceptable for the rest of your life.
Before you go around the office and tell it like it is to everyone from the ceo to the janitor. I suggest going through the Dividend Lover Financial Freedom Self Test.

For the next 6 months, you are going to pretend your salary does not exist. You are claiming you can live without it. Okay then let’s see you live without it. Take you salary all of it. Not 75% not 90% of it, all of it, and deposit it into a savings account for the next 6 months.

If you can live off whatever alternate income streams you have put together for 6 months, then you have earned your financial freedom, and have build up a nice emergency cash cushion to set you off on your way. Congratulations you have crossed the finish line and beat the rat race.

If you can't pull off 6 months of 100% saving your salary, then my friend you are not ready yet. Get back to building alternate income streams; dividend investing etc. you still need your salary. Try again next year.

Some of you may not agree with the 100% savings rate because of claims that for example my transportation costs will be less, I will spend less on clothes, I don't have to buy those expensive lunches at the office cafeteria, well I disagree, you have to save 100% because you will drive your car around when you quit, you will wear clothes, you can't be naked all the entire time. And you will eat out in restaurants instead of a cafeteria.  That and you need the extra safety margin for unexpected expenses ( or expenses you forgot to budget for )

Even if you fail the test don't be discouraged. you now know how close you are to your target. Say after 6 months you managed to save 50% of that salary, guess what you are half way there.