Redefining My Financial Goals
Redefining My Financial Goals
I used to think that financial independence was my goal. At least, my long term financial one. I have talked about purpose, identity, and connection in previous posts. But when it came to my economic situation, I thought it was pretty clear. Until now. As of late, I have been redefining my financial goals. I still have faith in the basic math that has become the dogma of the FIRE movement. Yet, sadly, I’m realizing that math is just not enough.
Besides the logical and mathematical side to this great quest, there is also an emotional one. Until I learn how to conquer these emotions, the calculus of financial independence no longer holds resonance.
Financial independence
I don’t care how you define financial independence. For some, it is having 25X yearly expenditures saved up. For others, it is having passive income streams that provide adequately for monthly expenses. And for a third group, it is simply the possibility of never going to work again for wages.
My point here is not to argue the finer details of what it takes to reach the mountaintop. Whichever mathematical reality you choose is fine with me. But attaining that predefined goal is far from the nirvana that we often make it out to be.
Unfortunately, for me, reaching my preset number didn’t automatically change anything. I didn’t go from being an indentured servant to unrestricted freedom. I didn’t feel any more safe, or more fulfilled, or even less worried about money.
And this is precisely why I am redefining my financial goals. I am not so much interested in financial independence a I am in financial freedom.
Financial Freedom
The two phenomena, financial freedom and financial independence, are not the same. Financial independence is a mathematical model. Financial freedom is actually emotionally separating oneself from the constraints and primacy of money in one’s life.
I am not there yet.
I have enough money to never work again, and yet I still worry about it on a regular basis. Stuck in the accumulation phase, I check my balances frequently and am acutely aware of what is happening in the stock market.
I may be independent, but I’m surely not free.
Why It Matters?
So what? Is the difference not trivial? Although for some it may be, it certainly isn’t for me. In many ways, I am looking for financial peace. I want to neither be the conquerer nor the slave. I want to coexist.
Redefining my financial goals may mean emotionally demonetizing. Letting go of the hit of dopamine that comes with making an extra buck. Being at peace with the accumulation phase and eventually letting go.
Reaching financial independence didn’t solve any problems in my life. My relationship with money was still unhealthy. Having a high net worth hasn’t been a game changer.
Final Thoughts
I am redfining my financial goals. I am going to try to pivot from financial independence to financial freedom. This state, of both mastery and indifference, will eventually require me to divorce my daily activities from earning potential and to demonetize.
In some ways I am already there. In others, I am lacking miserably.
But it is a goal that I am striving towards.
the money means nothing until you use it to enhance life in some way. about 2 years ago we were accumulating like you and charging hard when mrs. smidlap’s office closed for good. at the same time i had opportunity for much better working hours/conditions in exchange for about a 20% pay cut. to most people it seems like this combination would spell disaster, but our reality was different.
2 years later i’m still working and the job doesn’t really bother me as i like having some place to be during the day and still be home by 4:15 every day. i consider it we used all the hard work and accumulation to better our lives. if mrs. smidlap didn’t want to any longer work she wouldn’t need to. it turns out she was able to be very selective and found a 20 hour job that suits her needs and doesn’t ruin her life. we haven’t stopped investing completely but throttled down on the glide path towards retirement. we even sold some stock this year and just dumped it to cash savings in case we want to spend it. for us it’s better than quitting all at once. you’ll figure out your own best glide path i’m sure.
Great Post Doc. I’m also struggling in this phase. I still work part-time but find myself constantly checking the status of my account and my “Am I FI yet?” graph. Like you I haven’t been able to separate away from the accumulation stage even though every measure says I’m good. Will I ever be ready to pull the trigger or should I readjust my expectations and enjoy life as a part–time worker/landlord/dad/husband etc etc.
The question is what is changeable and what is adaptable. Part time may just be an adaption to get around what you can’t change.
I guess I’m Financially Free by this description. I work how and when I want, but could care less about “bonuses” “raises” or “monetizing” my blog. I was surprised to hear all the panic at the end of last year about the stock market decline. I never even saw a decline. If my portfolio even dipped it was minimal and short-lived. I don’t check that often so who knows?
You and I are on a similar career path.
Brilliant post. I struggle with this as I “move the goal posts” back each time I think I’m finished. I add goals related to helping my kids and family and that makes me “not free” when I otherwise should be.
Kid and family goals, at least, are very worthwhile.