One of the responses I received from “How Much Do You Need to Retire?” was that chasing financial independence is about making sacrifices. The logic behind this comment was that anything you save today is a “sacrifice” because you are not spending that money. I have a different view. Chasing financial independence is not about sacrifice, it’s about prioritization, intentionality and focus. Continue reading “Chasing Financial Independence is NOT About Sacrifice”
To explain why I think financial independence leads to less stress and more happiness, let me tell you a brief story. One day at work my boss called me into an unscheduled meeting:
Boss: “Jason, we are going to have to let go you. The company has decided to go in a different direction.”
HR Woman: “We are prepared to offer you 6 weeks of severance…”
3-Year-Old Son: Daddy, can you play trains with me?
Me: I’m sorry, I can’t play right now, I need to go to work.
3-Year-Old Son: [Sad Face]
Me: One day, I’ll have enough money that I won’t have to work.
3-Year-Old Son: And then you can stay home and play with me all day? [Happy Face]
Unfortunately, by the time I have the money to stay home, I’m not sure my son will want me to play trains with him all day. I expect that he may have other interests by then. I was very impressed by how quick he grasped the concept of doing what you want with your time once you have enough to support yourself.
Once You are Financially Independent You Can:
- Continue working to increase your lifestyle
- Quit a job that makes you unhappy
- Start a business without the pressure of needing to succeed right away
- Spend more time with friends and family
- Spend time on a hobby you are passionate about
- Work to financially support or volunteer for your favorite cause
- You may even be able to do a number of these things, – or thousands of others – the possibilities are endless!
In the Coin Flip Risk Assessment, I presented a hypothetical coin flip as an introspective view of your feelings on risk. Well, one of my readers, (OK fine, it was my wife) put the screws to me and gave me a hypothetical Super Coin Flip Risk Assessment with the same premise as my initial question.