Downsides To Financial Independence

While I have spent much time on this blog  describing my path to financial freedom, I have generally concentrated on the positives.  Money is power.  And power gives you options to control your own choices.  Don’t like your job…quit.   Live in a HCOL…move.  Want to travel hack and roam around the world for a decade?  Well, you get the idea.  But often we forget that there are also some downsides to financial independence.  As silly as it sounds, freedom comes with its own set of shackles.  These shackles, while not unbreakable, require some thought and perseverance to overcome.

I know.  I know what you’re thinking.

Boo hoo! Poor Doc G!  Your life must be so hard!

Believe it or not, freedom takes some getting used to.  Our brains have been programmed since childhood on how to think about such things as self-worth and purpose.  The FIRE philosophy turns most of these preconceived notions on their head.

Here is what I find are the biggest downsides of financial independence.

Loss of Purpose

Speaking as a man brought up in this society, there has always been a strong relationship between choice of profession and self-worth.  I can remember, as a child, being lauded for my aspirations to become a doctor.  How often do we ask school children what they want to be when they grow up?  Rarely do they answer father, or husband, or trustworthy friend.   No, we expect to hear doctor, lawyer, or even fireman.

As we become older, the idea of these professions become steeped in the dressings of societal respect and ability to produce wealth.  We connect our jobs with our value, both intrinsically and economically.

And then you discover that you are financially independent and that you no longer have to grind away at the nine-to-five.  You hightail it out of the office and say goodbye to friends and colleagues.  Returning home, the list of activities you now will have time for is staggering.

Until it isn’t.

You are not your job.  Yet, that’s the lens you have used to define yourself over the last few decades.

One of the biggest downsides to financial independence is actually an upside.  You are now tasked with defining who you really are, and what the purpose of your life should be.  You can no longer dress up your internal resume with that flashy profession.  It was just a window dressing.

What lies beneath?

Loss of Grayscale/Over-frugality

The world is neither black nor white.  For the most part, it’s gray.  To arrive successfully at financial independence, however, we have to be pretty hard-nosed when it comes to spending.  We didn’t get here by being spendthrifts.

These skills we learn, how to spend less, make do with what we have, and conserve, are the fuel to our FIRE pathway.  Yet after we reach the top of the mountain, it can be hard to let go of our overly frugal ways.  This can quickly turn us from financially savvy to financial miser.

My stupid car is the perfect example.  I go out of my way, to the dealership, so I can charge the battery for free.  I make this journey most days of the week.  For something idiotic like saving four dollars a day.  And if I’m too busy and can’t make it, I actually feel like a failure.

How does this make any sense?

FOMO

I never felt like I was missing out when I was busy building my career and wealth.  Sure, I knew others that were doing cool things and breaking the rules, but I saw great value in my path.  No one would look over at me and think I was wasting my life.

It was deeply ingrained into my psyche that working and making money were a large part of building a full life. Of course I was awaking with the sunrise, you bet I was slipping out to the hospital on weekends.  This was expected.

But now that I am financially free and no longer define myself by the daily grind, I feel like I am missing out on everything.  Why not start that new online business venture?  There is nothing holding me back.  Why not travel around the world or write the great American novel?

One of the major downsides to financial independence is that you no longer have a good excuse.  There is nothing standing in your way.  Whether you choose to pursue and opportunity, or let it pass, is completely up to you.

You must not confuse ample financial resources, however, with the concept of having unlimited time or energy.  You simply can’t do everything.

And that’s ok.

In Conclusion

Financial freedom is not nirvana.  There are downsides to financial independence that are both knowable and manageable.  The degree of contentment felt by FIRE enthusiasts may indeed be determined by the ability to jump these basic hurdles.  My advice is simple:

Develop purpose outside of employment.

Drop frugality when it makes sense.

Realize you can’t do everything, and instead focus on what makes your heart sing.