My Financial Independence Legacy
My Financial Independence Legacy
I am a product of those who came before me. I am second generation FI. My peculiar way of looking at finances, and my path to financial freedom have grown over years of watching and learning from my parents. My skills and philosophies regarding money have been handed down to me from earlier generations. My parents have taught me most of what I now know today. This is my financial independence legacy. A legacy that I hope to also give to my children.
But what did they teach me? What magic formulation did they pass on?
While I couldn’t condense everything into a short blog post, a few key points stand out.
Live to Work, Not Work to Live
Growing up, I had three parental figures. My mother and father (who died when I was eight), and then my stepfather. Although very different people in almost every aspect, my parents shared one thing in common. They all loved their jobs. They were innovators and creators, employers and business owners. Each had a passion for their chosen line of work.
The thing about loving your job, you tend to be magnificently successful. This success takes on a life of its own, and may well lead to financial profits. My mother, for instance, ran her own accounting firm. Towards the end of her career, she actually kept increasing rates to try to slow her practice down. Her clients, however, always agreed to pay more and more.
My stepfather was a business creator and a healthcare innovator. Years after he retired from his formal position running a large company, he still is busily consulting and taking on new projects.
My financial independence legacy is to love my work. If I can manage that, financial independence will always happily be plan B.
Example Is The Best Teacher
You may not believe it, but my parents really never taught me about finances. They didn’t instruct me about investing. Instead, they led by example.
More than any lecture about financial savviness, I watched for eighteen years as my parents deftly maneuvered through careers, real estate holdings, and investing. I watched them create businesses. I watched their successes and failures, hopes and dreams.
By living through their shining example, I learned how to negotiate the business world. If they had tried to teach these lessons more formally, they would have fallen on deaf ears. My adolescent brain had settled on doctoring as my future path, I was oblivious to finances or investing. Yet, I was learning the whole time. I just didn’t know it.
We Always Had Enough, But Never Too much
The financial independence legacy from my parents that I especially hope to pass down to my own children is the notion of extravagance. We never grew up with extravagance as children. Although my parents were generous enough to pay for the basics as well as education, we didn’t live the high life. All of us children had jobs as soon as we were old enough.
There is a fine line between comfortable and spoiled. I believe that the fact that my parents knew the difference was critical for the long-term well-being of my siblings and I.
In Conclusion
My financial independence legacy from my parents is one of the main reasons I am successful today. This legacy was taught over many years, and often without me even realizing. I grew up with the idea that one should love their job, that extravagance is unnecessary, and that I should teach my children by example.
I hope to provide my kids with the same good habits as they grow and mature.
It’s a much better scaffolding for their long-term wealth than just leaving them a pile of money.
It is fortunate not only that you had great examples to emulate but that you also were smart enough to incorporate that in your life as well. Too often kids have examples of how life is done right but still never take advantage of the learning by example and run into trouble later. I also feel really smart kids can become great financially if the opposite is true and their parents are poor examples (I know several who have seen the bad financial habits of their parents and use it as a framework of what not to do and subsequently succeed on their own)
I think we have to be good financial models for our kids. In fact, that’s what tomorrow’s post is about.
You are lucky you grew up in a family of successful businesses. Not all businesses are successful even after the good old college try. My dad tried his hand at business a couple times but economic circumstance intervened. The 60’s and early 70’s were tough, but my Dad made it work we never went without a meal or a roof and even though in the end the business went splat, I worked for him and tried to help make it a go. I was oldest. I learned a lot, like a ton. In the end he became a licensed registered professional engineer and sold those services, similar to medicine. If he didn’t stamp it it didn’t get built. I was never shy to farm my own opportunities. L didn’t live to work I lived to engage and succeed. I always had 2 jobs going on usually a W2 job and a side job like delivering pizza or playing in a band. Paid my rent and tuition and I got free pizza with the pizza job and free beer and chix playin in the band. Optimization. I was also exposed to wide berth of humanity. Our mill was in a small town of 5000 people, but also I came from the south side of Chicago, a neighborhood kid who played hokey in the flooded park in the winter My wife came from Chicago via lake shore Indiana where she worked in a Marina and for a Lawyer before becoming an OT and starting her own private practice. She also always had some side hustle going.
I’ve tried to raise my kids similarly. They have no concept of privilege, and disdain cliques and people who think they are privileged. They’ve been around the world twice but are totally down home peeps. They’ve gotten jobs and started their own businesses. I don;t think either of my kids are headed for big bucks, but they come from a life style that requires only middle class bucks. One daughter just launched and she is employed and finding her way. I’m a little bit involved with her finances. She is incredibly and creatively frugal so I have no fear for her. Not totally independent but she’s only a month in. The other kid is in school and growing into adulthood. That kid is a deal maker. She knows what she wants and she makes it happen. Both are where they should be and succeeding without any nagging from me. Sometimes I have to pinch myself that this is actually working out. I guess just teach them to pursue their lives with some passion, not be aholes, and have their back.
It looks like you have done that in spades. Congrats. It’s no small feat bringing up good kids..
As with so many things, having your parents set a good example early in life can set you up for success in your own journey. My daughters are too young to understand much about money, but I am already trying to set a good example for them. Kids are always learning, whether you are actively trying to teach them or not. As a parent, its important to keep in mind that they will inevitably pick up some of your habits, good or bad.
-Ray
Modeling is very important.
I grew up in a different manner. My Father hates his job. He is an extreme realist and would always shut down our dreams and hopes because they were”unachievable”.
I love my Dad don’t get me wrong. But his example allowed me to see how I didn’t want to raise my own kids. Or how I wanted to turn out.
I would much rather have the environment you were raised in. Supportive and encouraging.
Good read.
-FSD
It sounds sad to me spending your whole life hating your job. I think some sacrifice is worthwhile but there is a point.