Why You Should Care about Financial Independence.

You money or your life, a stickup by my youngest about 10 years ago now....Time Flies

Some people believe that those focused on the FIRE (Financial Independence Retire Early) movement and others who are heavily saving towards retirement don't want to work. Still, there is much more to this idea of financial independence than many realize.

This whole movement started around 1992 when the book "Your Money or Your Life" by Vicki Robin and Joe Dominguez was released. The title itself brings out the important connection and challenge this is posed in the book, which helped to kickstart this movement. Every day you spend working is a day you are not spending doing something else. Now if you truly love your work and everything around it that is great and exactly the way work should be, but no matter how much you enjoy your job, is there something else you would rather be doing? This is where FIRE comes in. It is less about the retirement aspect and more about the separation from the need to work. Every dollar you spend is a dollar you spent of your life earning. Now when you buy something, breakdown, how many hours you had to work to earn the money to buy that thing. This changes how you look at things and pushes the reason that people want to save more and stop being forced to work in the future.

Now, what does financial independence mean and what can it open up for you when you have it?

1) Freedom to choose: That's right when you have enough money to walk away from your job, you have a choice. Many people are working each day to pay the mortgage, the credit card bills, the car payments, you name it. So the loss of a job or a push to do something you do not agree with means you can choose what the best option is for you. It also makes our fears a potential reality. When your company is going through cuts, people tend to get worried about their jobs, and what are they going to do. They may become anxious, depressed, and worse even jeopardize the job they are in. With freedom to choose you can be bold in these times and stand out more when you are not coming from a position of fear.

2) Freedom to take risks: Yes, it is no secret that those with sufficient funds are more risky in their endeavors. I have heard people say they are afraid to move too high up the ladder because they could have a larger target on their back in the event of a downturn. Why? Because those people need their job. What about a new position that is short-term, big risk, and has big potential? What do you do? Well, if you are independent, then you can take the risk, especially if it is something you want to do. As you have a position of comfort, your willingness to take risks and put yourself out there is greater. It is not about retiring early, but more so about opening up greater possibilities for your career and growth.

3) Freedom to live YOUR Life: This goes hand-in-hand with the above 2 points, but overall, the concept is simple, you get to spend your time on the things that are important to you. I have 3 boys, now ages 12 to soon to be 20). Everyone always says that time flies by, but you have no idea till you look back. If you run the numbers you only have 6,574 days...from birth to 18, but when you start to factor in some other things, you will have spent 75% of the time you have with them by the age of 12. I can tell you once they hit those teenage years, things change and the time you spend with them will go down. I even look now, trying to find time to get back to my parents or my wife's parents and it is not easy. Our schedules are pretty full with sports, work, and vacations, so when do you fit in the time? The answer is when you are independent, you choose, prioritize what is important, and avoid the worry that comes along with it.

While the FIRE movement was a good thing, I tend to look more at the FI part of it. It will unlock your life, give you more control, give you peace, and open up opportunities you never knew existed.