Do Not Fall In The Trap of Setting Financial Freedom As Your Goal... (Find Meaningful Work Instead).
Updated: Jun 8
According to Wikipedia, "financial independence," or as others like to call it, "financial freedom," is the status of having enough income to pay one's living expenses for the rest of one's life without having to be employed or dependent on others.
Passive income is commonly referred to as income earned without having to work a job.
This idea can be very compelling to many... including myself.
But here is why it’s a trap and why you should think twice before setting financial freedom as your goal.
1. MONEY PROBLEMS DON'T GET RID OF ALL YOUR PROBLEMS.
Money only solves money problems...
- Alex Hormozi.
Many people believe that obtaining financial freedom is the key to getting rid of all of life's problems.
The reality is that money is only one of the four pillars of life.
Wealth (career, money and finances)
"Yes, money can help you pay for better doctors, procedures, vacations, gifts and experiences, but it can never help you get rid of your addictions, toxic relationships and unhealthy thought patterns."
2. FINANCIAL FREEDOM DOES NOT EQUAL HAPPINESS...
"Desire is a contract you make with yourself to be unhappy until you get what you want... Happiness is being satisfied with what you have."
- Naval Ravikant.
"Most people believe that financial freedom will give them happiness... But when it comes to happiness, less is more."
If you want to achieve financial freedom, you have to be driven to do so...
To be driven, you have to be unsatisfied with your current situation and demand more from your life. True change comes from unhappiness... if you were always happy, why change?
Setting financial freedom as your goal looks something like this...
It starts by accepting the realities of your financial circumstance. For example, bearly surviving financially, paying bills paycheck to paycheck, going into debt, etc...
Then it turns into needing to make changes in the way you live. Example; Reducing costs, increasing income (getting a better job, working more hours or working more jobs).
And finally, aim for the desired outcome. The ultimate goal is to obtain financial freedom to have enough income to pay one's living expenses for the rest of one's life without having to be employed or dependent on others.
"That's the path towards financial freedom... but that is not necessarily the path towards happiness or fulfillment..."
So, where is happiness in this whole equation?
Happiness comes from being satisfied with what one has and not looking for more... I know that sound disappointing but is true. But what if there was a way to be happy and rich?
Well, there might be one other path...
Make your "work" something you like. (find meaningful work).
Always show up for work. (consistency is everything).
Financial freedom does not equal happiness. But you can work towards having financial freedom while feeling fulfilled...
Happiness comes from being fulfilled by your daily routines...
After all, what is life but a series of days that turn into weeks, months, years and decades.
"You can feel fulfilled by chasing something you want, as long as what you want does not equal happiness."
3. TRUE FINACIAL FREEDOM.
When it comes to obtaining true financial freedom, there are two main ideas that are very important to understand.
Money is how we transfer time and wealth.
You will never get rich renting out your time.
When people think about having enough money to never work again, they think about the day that they are finally able to be fulfilled and happy.
"But fulfillment does not come from NOT doing the work, it comes from DOING meaningful work."
If you genuinely find meaning in your work, you may never feel like you want to quit.
Choosing not to work is an option that most people will never get to make. That's what true "financial freedom" gets you.
But if you find meaningful work, choosing to never work again might not be an option.
"Stop chasing financial freedom as your goal and start focusing on finding meaningful work instead."
This was the first blog of a series of original ideas that are coming soon...
That being said, "How To Find Meaningful Work" might be the second part of this blog.
(side note: the only passive income that does not require real work might only be using earned money and investing it to gain interest while using time to your advantage by waiting long enough for it to compound).