Why Financial Independence?
Posted by Cap in Even More Ramblings |Every worthwhile thing in life — in my opinion — will not be easy to obtain. As Randy Pausch said, the walls and barriers are there for those who are hungry enough and wanting it bad enough.
I truly believe that I want financial independence bad enough to climb those walls and get through those barriers.
But why?
Is it simply about retiring in comfort? Having enough saved up so that in my advance years, I can hum around in style, store my infinite supplies of Cheetos in my fancy pantry — that happened to came with my nice big suburban house?
Are we all spending less than our means, saving diligently, and investing wisely, just so that we can live in the future without worries?
For me, those are a part of the reason. I would be crazy to choose a life of worry and financial difficulties, especially in my later years of life. Plus, why not? Everyone always tout that basic personal finance values are common sense. Spend less than you earn. Build an emergency fund. Invest wisely.
It’s entirely boring. There’s nothing sexy about the system, but the math works.
Even so, why follow common personal finance adage? Why should any of us pursue financial independence, which as it turns out, is a very subjective thing? Some of us are fine with a house well-stocked with food. Some of us want the yacht, private jet, and houses with 10,000 square ft. ballrooms. Nothing wrong with either goals in my opinion.
I often debate the subject of why within my own head, but as I grew older, the reasons started to become much clearer and much more focused.
Everyday, I wake up and see my mom heading off to work. And although I don’t get to see him often enough, I know that my dad is doing the very same thing, getting up at six in the morning to head off to work. Many of you reading this do the same thing everyday.
Although our reasons may be shaped with different words and different ideas, I believe the underlying goals are the same as my own reasons for wanting financial independence: it is for the love we have for our loved-ones; for their well-being, for their happiness, and for their comfort in life.
One of my mom’s financial goals was to earn enough money to buy a nice little house in Fountain Valley, CA, so that my grandfather can live his later years in comfort. As the years went on, my mother got closer and closer to her goal, but things came to an abrupt halt when my grandfather passed away due to cancer.
I still remember that day clearly…
My family and I gathered around my grandfather’s hospital bed, and as he passed away, my aunt and uncles started to cry aloud their father’s name. My grandmother clung onto the hands of the man she’s been with for the past sixty years, and I stood in the back of the room… wishing my family wouldn’t have to go through this experience.
Despite the untimely death, my family and I were truly blessed. Tens of thousands of others pass away each day without the surrounding comfort of their family and the care of a modern medical facility.
At the end, all of us being there that day was the founding reason why I wanted to achieve financial independence — to also be surrounded by family and loved ones during some of my final moments in life.
To feel their warmth, look upon them, and know that they will be taken care of. To be comforted by the thought that they will continue to be happy, be well-supported, and be able to somehow contribute to the improvement of this crazy round ball we all live on.
And of course, to be able to smile and ask them, “Did I ever told you guys about this silly, stupid blog I had on the World Wide Web…?”
7 Comments to “Why Financial Independence?”
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March 10th, 2008 at 6:28 pm
Thanks for sharing your story about your grandfather.
Personally, my motivation to to achieve financial independence is that much like you I don’t have to worry about finances, especially later in life. I don’t want to have to stress about where to find the money when an unexpected expense arises or I want to make a splurge. I also want financial independence so that I’m not a slave – I’m not a slave to my day job (gotta work to pay bills), I’m not a slave to my house (gotta stay home because don’t have the money to visit family and friends), and I’m not a slave to regrets (I wanted to have this experience but couldn’t because I bought crap that I’ll never use).
March 12th, 2008 at 10:06 am
Financial independence was never a goal for me. As it turns out, I achieved financial independence but never really planned for it. My parents endured the Great Depression and WWII. As a result, they were extremely risk intolerant. Some of that rubbed off on me. In my youth, money was always scarce. When I latched onto a dollar, I held on tight. I simply could not afford to waste or fumble away that dollar I struggled so hard to earn. Waste not, want not. So saving came to me naturally. About the time I entered college, I received the following advice: One, don’t buy anything you don’t want. Two, don’t buy anything you don’t need. Three, don’t buy anything that doesn’t work. I took this advice to heart, and thus freed up more dollars to save. When IRAs were introduced in the early 80’s, I was able to contribute the maximum — I did it mainly to get the tax deduction — and further build my nest egg. I was never aggressive; up until about 1990 I was content with compound interest. About this time, I began to learn more about investments. I retired from the Air Force (with a generous pension) and landed a job with a company with a 401k. The company match alone was too good to pass up. I began investing in mutual funds thru my 401k. By living within our means, my wife and I managed to pay off our mortgage in 13 years. With the mortgage out of the way and health insurance thru my wife’s civil service, I was able to retire two years ago. I rolled-over both my company pension and 401k into an IRA brokerage account which I manage myself. My wife was downsized years earlier and never went back to work. Today, we live comfortably. It just sort of happened. But looking back, I recognize the keys to my financial independence: my wife and I both worked without a break; my military pension provided an extra income stream; my college education provided for both my military career and second career; my frugality provided for my college education; and, my frugality was provided for by my parents’ example and experience.
I know folks who are addicted to spending. They just have to have the latest everything. And I know some who look forward to dying in debt. Different strokes…
March 13th, 2008 at 2:51 am
This is a great post. I am becoming more savvy financially because I want to have security. I want to have options in life that having a stable account allows. Debt is overrated.
March 15th, 2008 at 11:50 am
Very, very touching.
March 17th, 2008 at 6:05 pm
For me, it isn’t about financial independence so much as it’s about surviving climate change. Seriously, when the levees, break and we have to move, the only things we’ll have with us are what we’ve put away in our cataclysm survival kits. The rest of it, as your blog name puts it so well, is crap. If we won’t need it then, why do we think we need it now?
Downsize this: http://blog52.wordpress.com/2008/03/13/10-downsize-this-baby/
March 29th, 2008 at 9:23 am
Nice post. The best thing about financial independence is you have the ability to say “no.” As your post revealed, time is the most precious gift. I want to spend my short time on earth doing things I want to do, not “working for the man!”
April 13th, 2008 at 1:25 pm
Nice post and great story. As for the financial independence, I am with Jim – the ability to say “no” to work and duties is what I seek. The ability to do whatever I want with my time – as the time is something we can’t produce.