Trust Fund Babies Are So Lucky...

Jealousies aside, trust fund babies must be the luckiest people on earth.

I wasn't born a trust fund baby - far from that. However, I have been strategising on how I can one day start having real financial freedom.

To me, freedom means having enough assets that will generate enough perpetual cash flow to cover all my living expenses for the rest of my years. I wouldn't owe anyone anything. I would be able to essentially do whatever, whenever by essentially resting on my laurels. LOL.

Depending on what sort of lifestyle you're actually aiming for, financial freedom could probably be achieved by most people.

As much as I enjoy working for my boss when he's in a good mood, I've been daydreaming about The London Luxury Lifestyle for a while now and since I don't want to be all talk and no action, I've been thinking about concrete ways to implement this over the next few years. My London Luxury Lifestyle would not only involve lots of Hermes, but also housing in a fashionable area of London, whatever I feel like eating, taxi rides everywhere, a good spa visit whenever I feel like it, and a holiday every two months if I wanted - basically a very OTT + diva type of lifestyle. Suffice to say, if everyone spent like me, we wouldn't ever be in a recession.

The good news is that I wouldn't need millions in my Freedom Fund in order to get to this lifestyle. If I increase my annual ROI target, a mid to high six figure sum would be sufficient. However, the key is to ensure that your ROI target remains consistent and achievable. In addition, it also involves intelligent use of leverage.

I feel adamantly about not using leverage if you are still learning the market. Leverage should only be used if you actually know what you're doing because it is very much a double edged sword. However, I'm admittedly conservative.

In addition, discipline plays such a key role. Remaining rational is so critical to success. So far, I've been taking time off from the markets whenever I want because I can. If I had to trade full time, would it be so easy to step away from the market?

Since I'm not getting any younger, the pressure's decidedly on.