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Dec 07, 2018 08:02:49

What is financial independence really about

by @basilesamel PATRON | 268 words | 385🔥 | 433💌

Basile Samel

Current day streak: 385🔥
Total posts: 433💌
Total words: 205089 (820 pages 📄)

Ask random people in the street about what financial independence means to them.

Chances are, they will tell you they need X millions to consider themselves findependent, meaning, you have to earn a lot more than what you are currently making.

There is some truth to it. If tomorrow you earned 1 million dollars, you would have enough money for the rest of your life, as long as you invest it correctly.

But this quest for more is far from liberating. Money becomes your master. You will never attain any form of freedom. Instead, I say, learn to master your money. Money is an universal tool meant to provide a way to exchange goods and services. It should remain a tool.

So, instead of asking "How can I earn more?", you might want to think about "How can I live on less?" first.

People don't want money, they want the freedom that comes with having money. There are but two ways to gain this financial freedom: by raising your income, or by decreasing your expenses. Decreasing your expenses is easier than raising your income, because you can act on it starting today.

Expenses result from daily habits. Consequently, financial independence is a lifestyle.

Financial independence is the lifestyle based on frugality and anti-consumerism.

Start saving. Invest your savings in low-risk funds (eg index funds). Learn about the compound effect.

Chasing money is never a good idea in life. Helping people or solving important problems will not only benefit everyone, but also give you opportunities for revenues later on the road. 

Instant gratification is tempting. Work on the long-term.

  • 1

    @basilesamel

    Brandon Wilson avatar Brandon Wilson | Dec 07, 2018 18:22:19
  • 1

    @basilesamel Great tips! Reducing expenses is such a great way to give yourself a pay raise.

    Brandon Wilson avatar Brandon Wilson | Dec 07, 2018 18:22:14
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    @basilesamel philosophy of minimalism, money automation, long-term thinking come to mind :)

    lowen flowen avatar lowen flowen | Dec 07, 2018 09:55:18
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      @flowen yep that's my kind of drug

      Basile Samel avatar Basile Samel | Dec 07, 2018 10:41:17
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    @basilesamel Good one Basile, a very good one.

    Insightful.

    Seun Oyebode avatar Seun Oyebode | Dec 07, 2018 09:47:16
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