By Mr Defy
Sometimes descriptions of financial independence are unnecessarily complicated. In plain language, financial independence (FI) is having enough resources to do what you want with your life. There are many paths to reach financial independence, but the end goal is the same- grow your wealth to a point where you can survive without needing a W2 paycheck. For many people, this means having enough passive earnings (dividends from stocks, real estate investments, royalties etc) to cover your monthly needs.
From this basic definition, FI can expand into being much more. I remember day-dreaming when I was still in high school on what FI could be like. Imagine how the world could open up! I craved the freedom to explore pursuits I would normally not have time for- like cycling across the country or volunteering for months at an anti-poaching NGO. I also imagined the freedom to act within my principles- to never feel like I “had” to do something unsavory because my job was on the line. Or how about being available for my wife and kids, never missing a sports game or piano recital?
“Don’t ask yourself what the world needs. Ask yourself what makes you come alive, and go do that, because what the world needs is people who have come alive.”
-Howard Thurman
I can’t speak for you, but I know this quote is true for me. I used to work at a financial firm that catered to high net worth individuals. I know there must have been people that felt alive and invigorated coming into work most days, but for most of us it was merely a means to a paycheck. I remember finishing more than I’d been assigned by noon one day and then feeling trapped until 5 pm because that was when you were “supposed” to leave. I was living for the weekend, waiting to do the things that truly excited me. And unfortunately in this modern narrative, many of the things that excited me (like applying for a local non-profit or joining a recreational basketball league) were put off or neglected because I was too tired or busy from work. I remember being worried I wasn’t fully enjoying my weekends because part of Sunday was spent feeling apprehensive about going to work the next day.
2008 only reinforced my desire for financial independence. Greed ran rampant in the economy and millions of people lost their jobs, houses and savings. I can’t expect the government to take care of me (unless I’m an executive in something “too big to fail.”), so I need to be responsible for my own situation. Having an emergency fund is a great start, but I want to do everything I can to mitigate the effects of another 2008 on my ability to support myself.
Today the financial independence movement is flourishing. More and more people are flocking to FI ideals. Websites, podcasts, books and blogs are popping up all the time (this one included). People are recognizing that something isn’t right with how we’re living and are trying to find a different way. By no means is FI a full-proof method, but it’s pretty exciting to think there is a version of the future where I can do, be and give more. We’ll create more posts in future about the nuts and bolts of FI, as well as share resources we’ve found exceptionally helpful. At Defy the Joneses we not only want to recount our process to FI, but also show why FI is so incredibly worth the risks and sacrifices.
