What Does Financial Freedom Mean to You?
How do you want to spend your time on earth?
This post is inspired by these three books, in case you want to look them up:
Financial Freedom; A Proven Path to All the Money You Will Ever Need
Playing with FIRE; How Far Would You Go For Financial Freedom?
Die With Zero; Getting All You Can From Your Money And Your Life
The headers from the websites of the first two books are:
'Money is Unlimited. Time is Not.'
&
'Net Fulfillment over Net Worth.'
I couldn't agree more with both of these statements. As a financial coach, I always hear myself saying that the work I do with clients isn't really about money, it's about their life. This is true- but I can't tell you how much MORE inspired I was about what I do after reading these books.
Why? Because gaining control of your money means gaining control of your time, which we all only have so much of. Our kids only grow up once. Our bodies are only limber and agile, well, until they aren't:) There are certain things in life that, if we don't experience them now, we never will be able to again.
This inspires me because I love helping people stop wasting their precious time in life doing things they don't love or value. I am not anti-work by any means, I love my job. However, I also love supporting people, whenever possible, in working less when they want to, or in making whatever changes they need to in order to spend their working hours doing something that energizes or fulfills them.
We don't know what we don't know
As someone pretty entrenched in dialogue with money, who had read all the blogs and books about frugal living and simplicity when I was younger- I still got so much out of reading these books above. For me, reading about living a life in the pursuit of happiness (instead of money just for the sake of money) was like drinking water when you're thirsty. I have been thirsty for my 'why' lately when it comes to my own savings. Why earn more? What's my incentive beyond a secure retirement and stable, joyful life for my kids?
My inspiration is this: I want to live a life now that is sustainable and joyful, exciting even, while knowing I'm also financially safe in the future. Where I get to garden, eat well, exercise, be a good mom and partner and sister and daughter and friend. Where I have a social life, and also get to enjoy being unplugged regularly. Where I get to be present. I want to feel 'pre-tired,' in that I'm not waiting for retirement to live an authentic and fulfilling life.
Is this too much to ask?
I find that it most definitely is when I'm too busy, especially as a parent. However, I want to challenge myself to continually and intentionally structure my work schedule to be one that supports my life and values.
If you don't currently love your job and how much you work- Do you know that you need to be working as much as you are? If you think so, why is that? Are you worried you're not saving enough for your older self? Are there steps you can take to address those worries, so that perhaps you aren't spending too much of your precious life inside at a computer?
Wasting money is wasting your time
Money = Time spent at work
When we spend money, it represents a certain amount of time we spent at work
(and time getting ready for work, commuting, buying work clothes, etc).
Paying attention to one's spending doesn't mean we should shame ourselves for any or every penny we spend. Rather, it's about noticing when we spend money in ways that we don't really care about, that don't bring us joy, or perhaps that we didn't even know we were spending it on (think apps you no longer use).
Let's say this month you cut $400 off of your typical budget by negotiating your car insurance, cancelling subscriptions you don't use, by not buying something you didn't really need, or getting is used instead. How many hours of work does that $400 represent? What if you could have had a couple amazing days off, where you created memories you would have forever?
Your time is limited. By being intentional with your money, it might be possible for you to work less now and enjoy your time more. Or, save more now so that you can work less later- and do more of what you love.
What is this whole F.I.R.E movement thing?
The Financial Independence/Retire Early movement is really motivating for those who don't especially love their job or career field, and simply crave the freedom to get to choose how they want to spend their time. Many people who achieve financial independence keep working, but they end up doing work that inspires them and that they enjoy. Because they don't depend on it for their survival, their relationship to the work is different.
What does Financial Independence even mean?
It means you have enough money saved where you don't have to work anymore, and you can live off the interest that money earns. You might be thinking, who the hell can pull that off? Well, if you start young, and commit to saving 50% of your income, you can often pull it off in ten years or so. Compound interest is pretty magical. If you struggle with believing in the power of saving and how much it adds up to over time, I strongly encourage you to read the first book linked, Financial Independence.
A common theme among people who figure out how much they need to save in order to stop working is that they realize they don't need a ton of money to be happy; what they really crave is freedom. The freedom to take time off, spend quality time with loved ones, choose how they schedule their week, etc. In order to accomplish this, they get really clear on what they actually enjoy spending money on, and what actually adds value to their lives. This usually means they can live on less, so they don't need as much for retirement savings. Do they need to be intentional when grocery shopping? Maybe. Do they wear rags and have 6 roommates? Mostly not. But they are intentional with where their money goes.
Also, because many of these folks still end up working part-time, they do still have an income once they quit their main jobs- So they don't need to necessarily save enough to support them 100% for the rest of their lives.
What if you don't earn $100K+/year?
Over half of Americans only earn $30K or less per year, and yes, it is obviously a lot harder for people making that income to retire with security, not to mention to retire early. However, we all have (some) choices in life. While I made 30K/year (which was for quite a while), I did manage to save half of my take home pay. I had big goals, and so I was willing to not spend much going out to eat, or on alcohol, and I was crafty and scrappy about getting things I needed off NextDoor instead of buying them new. The effort was worth it to me, and it's how I was able to save for a house. However, I didn't yet have a house, or kids, or major health challenges, and so that was easier for me to do.
I want to acknowledge that yes, if you are earning a ton of money it is far easier to save enough to retire early, or in ten years. However, it is still possible to make life choices that support a less expensive lifestyle, so that your savings affords you a certain amount of freedom in life.
So... Saving money is about freedom?
Yes! It's about owning your time. If you want to watch a funny video (with adult language), here's a spoof on a scene originally with John Goodman from the Gambler, but with J. L. Collins who wrote the Simple Path to Wealth, about F*** You Money.
P.S.
As many of you know, the first step in working with me is a Financial Clarity Intensive, which is a deep-dive into your goals, values, and how your money can support you in honoring those.
However, some people need a little more support and processing in order to gain a hold on their financial situation, determine their 'why,' and make a financial plan to manifest that. If you know anyone who might need a personal Money Retreat, feel free to put them in touch with me.
Who is this good for? An overwhelmed individual, business owner, or perhaps a couple who wants support as they start working toward goals together. For these I plan to block out my schedule for an entire day at my home office/cabin and hold space for whatever it is they need.
As always, I hope this was helpful, and I love hearing your feedback about what these little snippets bring up for you. Thanks for reading:)