Financial Independence Losses
Financial Independence Losses
We love to talk about what we have gained with financial independence. The list is oft recounted on blog after blog. Some have suggested that we even have gained time, though I doubt that. We have definitely increased our freedom to pursue the deeper meaning in our lives. Released from the money mind meld, we search to build our best selves. These life changing attitudes towards our relationship to work and money are nothing short of breath-taking. They are one of the true benefits of FI. We tend to forget, however, that with all these gains there are also a number financial independence losses.
Although not always negative, these losses are just as profound and life altering as any of the gains. They are the forgotten guide posts on the path of financial freedom.
Money Apathy
If nothing, managing finances adroitly will definitely lead to a change in your relationship with money. Once a large goal of your daily work, the intensity and worry dies down. The tell-tale sign is letting your mint and personal capital accounts go awry. The passwords change or the accounts need updating and you lose the energy to correct them.
This sense of money apathy is the first of many financial independence losses. The ups and downs of your net worth lose meaning in the daily hustle to keep yourself busy. You stop checking your brokerage balance and may even ignore the stock ticker from day-to-day. Market apathy is soon to follow. Once you realize that Mr. Market is a convoluted and schizophrenic bedfellow in the short-term, your interest fades.
Employment Apathy
Not every financially independent person decides to retire early. For many, there is a certain satisfaction in the day-to-day reality of W2 employment. Although the process of downsizing may begin before leaving totally, there are many wealthy people who still take pride in their jobs. This pride spurs them to wake up every morning and manage the commute to the 9 to 5.
The relationship to work, unfortunately, can not remain what it was before. The financial independence losses are no more evident than when viewed under this microscope. No matter how dedicated you may be, it is hard to fight the sense of apathy that comes with financial freedom.
Why stress about work if you no longer need the income? Why lose sleep? The concept of FU money (having enough money to quit at any time) is wonderful but it also has a dark side.
You tend to have less skin in the game.
Dream Apathy
May you never reach your dreams fully.
This is one of my favorite sayings even though I get a lot of funny looks when these words role off my lips. Nonetheless, I think there is a certain beauty and sense of belonging that comes with striving. We are most happy when we are making progress in attaining a dream. Not when we actually reach the finish line.
One of the most feared financial independence losses is the loss of purpose. Financial freedom is a big, audacious dream that often feels far out of reach. The danger to reaching one’s goal is forgetting to move the goal post.
Life is about growth. In order to grow we have to dream. Dreams attained need to be replaced with bigger, scarier, more complicated ones.
Final Thoughts
With all the wonderful gains, there are a number of financial independence losses. The biggest stumbling block is apathy. Whether it regards money, employment, or dreams, these pitfalls can be overcome with thought and intention.
Money and employment apathy can be replaced with new dreams and goals. Financial freedom must never be looked at as an end.
It is more appropriately classified as a new beginning.
Also, I was on the Countdown To Fi podcast this week. Take a listen by clicking on the image below.
Al real but all mitigatable. In a way your last item drives the other two. Your purpose should ultimately bring intrinsic motivation. The other items are more extrinsically focused.
True. If your are mindful all these losses can be managed in stride.
My biggest FI loss so far has been the sharp downturn in interest I experienced when the frenetic motivation accompanying the start of any new and exciting project came crashing down like the end of a sugar rush. It took a few months of general apathy, but I have since moved on to the dedication and discipline aspects. One foot in front of the other, right?
Right. To get to deeper meaning you have to get through the crash first.
I worried about “loss of purpose” when I retired. I developed a new purpose, teaching personal finance to doctors, and that kept me busy. Combine that with travelling 50% of the time and my life seems fulfilled.
Dr. Cory S. Fawcett
Prescription for Financial Success
Cory you continue to be a shining example us Docs strive to emulate.
Doc G,
Thanks for the encouragement.
Dr. Cory S. Fawcett
Prescription for Financial Success
Employment apathy was the big one for me. I didn’t care about work at all after I became FI. I just wanted to leave. Now, I work a bit on my blog every week, but I don’t put 100% into it. More income and more work don’t hold the same attraction as they did when I was young.
Money apathy isn’t as bad for me. I still keep track of our investment and monthly cash flow.
Employment apathy is setting in with me slowly. I have much money apathy though.
I have several consulting side gigs that challenge me mentally and require me to attend various meetings and study complicated documents, generally a day or two a week of activity. I also kept my volunteer work chairing a college board and a charity board. While these activities do tie me down somewhat they add value to my life and have kept my brand alive and my resume current. I am not sure what value that constitutes but it does prevent me from struggling with any “who am I now?” questions because I’m still very much a public figure. I find being slightly employed is a cure for employment apathy without the grueling costs of a 9 to 5. I also consult from time to time with my former employer which keeps my network of former coworkers alive. I really think this is much better for me than going cold turkey and just filling my life with travel and recreation. I have time for four or five days a week or more of recreation and travel and two or three days of paid and non-paid work. The money is substantial but unneeded but earning in retirement still feels good in spite of my knowing it is irrelevant to my financial situation.
Being slightly employed or downsizing is tge right path to me.
Indeed, Financial Independence is the beginning not the end! That’s the whole point of reaching FIRE isn’t it? To have time for all the things you want to see and experience in this beautiful world? It’s another chapter in the book of life. As long as you keep being curious and excited there’s always another chapter to explore.
Definitely agree. It is a new chapter with blank pages for you to fill.
I would consider money apathy a big-time financial gain, not a loss personally. And I’m glad that I have it for the most part, but with health care I still have some lingering money concerns that will probably never go away
Health care still remains the main sticking point for many.
For me, FI is all about that climb rather than the destination. I enjoy setting goals and then running past them. People need a reason to get up in the morning, and all the money in the world can’t replace a purpose driven life. I have faith in your ability to keep setting new goals to work towards.
Goal setting is important. Especially non money goals.