You may be aware of Tax Freedom Day which is the day of the year when the average American has worked enough to pay Government tax obligations and can start working for themselves. In Michigan this year, it was on April 17th.
I’d like to introduce Work Freedom Day as the day of the year where you’ve accumulated enough Dividend Income during the year to no longer need to work. For early retirers, that day would be January 1st but for many of us still on the FI Journey it’ll be somewhat later in the year.
My Work Freedom Day
Based on my projections this year, and I’ll revise it nearer the date, my Work Freedom Day will be 20th November 2014 and I can’t wait! Even if I won’t retire this year, it’ll be a nice milestone to celebrate!
How to calculate your Work Freedom Day
To calculate this date, I’ve estimated my projected dividend income for the year and used the following formula:
Day of year = (1 – (Total Projected Income) / (Total Yearly Budget) ) * 365
For this year, the formula gave me a result of 324 which I converted to 20th November using the site http://www.calendar-365.com/day-numbers/2014.html
Update: I’ve made a quick and dirty calculator below
I’m going to be tracking this date going forward and hope to watch it move towards me due to higher than projected dividends!
Quote of the day
Our freedom can be measured by the number of things we can walk away from.