What is financial freedom

To get anywhere, you need to know where you are going.

Once you know where you are going, you need to know why. Knowing your ‘why’ will keep you motivated when the temptation to stop becomes strong.

Today, I am going to explain what financial freedom is and why it is worth pursuing.

 “The purpose of wealth is freedom; it’s nothing more than that.”

Naval continues to explain, “It’s not to buy fur coats, or to drive Ferraris, or to sail yachts, or to jet around the world in a Gulf Stream. That stuff gets boring and stupid, really fast. It’s about being your own sovereign individual.” 

Naval Ravikant is an investor, business owner and philosopher. He is worth an estimated $65 million.

That makes him someone worth listening to. Especially as it pertains to the purpose of wealth and its pitfalls.

My definition of financial freedom is the ability to produce on your own terms.

It means you never have to work for the purpose of earning money again. To reach financial freedom you must have what Nassim Taleb calls “f*ck-you money”. You have enough wealth that generates enough passive income to cover your lifestyle costs. You can say no to whatever you don’t want to do.

Some people believe the height of a good life at this point would be to ‘retire’. That is to consume all day and never do another day of what society describes as work ever again. The evidence shows that this is not the pinnacle of the good life.

Humans are inherently creative. We get deep satisfaction from producing and solving problems. Some people find this in their ‘jobs’ and get paid handsomely for it. 17% of employees in the UK ‘love’ their work. This newsletter is not for them. It is for the other 83% that don’t want to spend their productive years in meaningless meetings, traffic jams and office blocks.

By working toward financial freedom, you will have the space and time to find work that fills your soul with joy. As a satisfied and motivated worker, you will inevitably be more productive. When money is no longer the goal, the work you produce will probably be in service of others.

When you finish ‘work’ for the day you will feel energised rather than drained. Instead of reaching for the convenience of the car and the ‘stress-relieving effects’ of a drink, you will have the energy to exercise and the motivation to cook a healthy meal for your family.

A whole workforce of fulfilled individuals will create a more productive economy. Companies and governments will stop providing products of convenience and stress relief. Instead, more spaces will open for energised and motivated individuals to exercise, socialise and share ideas.

It is an idealised world. Some of you will think it is impossible.

But think back to a time you worked on a project that gave you real purpose and drive. You probably finished work on that project more energised and satisfied than when you started. You felt a real sense of pride in what you had achieved. I would hazard a guess you excitedly told your friends and family about what you had learned that day. If you were lucky, your friend or family member had a similarly fulfilling project. They excitedly told you about it too. That sharing of ideas may have influenced you to take on another fulfilling project.

In contrast, we have all sat down with a friend and bored ourselves chatting about the job we find deeply unsatisfactory. We swiftly turn the conversation onto people and events rather than ideas and sink a few more pints.

I have experienced both and I know which scenario I prefer. I bet you do too.

Financial freedom is the freedom to produce meaningful work and live a life on your own terms.

It is achieved by owning enough income-generating assets to pay for your chosen lifestyle.

It is worth pursuing because life gets better when you have the space to focus on projects that excite you. This will create a workforce of financially-free individuals. They will be more productive and produce work in service of others.

If you believe this life is possible, and you want help to find it, then subscribe below. You'll get all my future articles. They will have the tools you need to reach financial freedom and find work that fills your soul with joy.