For most of us, the idea of being financially independent is only something we dream of. There is a group of us that really believe this is not just a fantasy but a vision however. We believe that living below our means, maxing out retirement accounts, paying off debt and mortgages, and saving consistently will allow us to achieve freedom. We will be free from money issues, free from our constant struggle at work, and free from holding back on doing what we are passionate about.
Throughout my life, I have been trying to save. There were countless times when I wanted to buy something but at the end did not get it because I did not want to spend the money. From a bottle of coke to that new car I wanted, I stopped myself again and again because I know that buying would mean wasting my hard earned money. I have used those compound interest calculators so often that I can instinctively calculate the magnitude of how much my purchase would be worth in retirement if I just hold off.
I feel bad when I turn on air conditioning. Therefore, I end up never turning it on. Sometimes it is so hot that I keep sweating and feel miserable. Yet I struggle through it, thinking that if I can hold off this one time, I could save that extra few cents that will help me become financially free sooner.
On the other end of the spectrum is my friend. He practices live in the moment and worry about tomorrow later. He has 4 cars in his possession, lives in a very nice house, and goes out to dinner every night. When you look at the two of us, you would think that we were living in different worlds! Maybe he is not worried about retirement, but he is definitely having fun now.
My friend constantly reminds me that although I might have a richer retirement, he definitely lives a richer life than I do at this moment. The fact that he is able to live rich for 20 years should be the same as me being able to live rich 20 years after retirement. He is right in a way, and I sometimes see myself being jealous of how he is now.
There are always pros and cons of everything. Whether it is me or my friend, we have made choices. I am those people that like to tough it out at the beginning, and have a happy ending. If you want to live rich now, be like my friend by all means. No one is stopping you, because it is your life.
I feel like I am better off than my friend, because I feel secure knowing I am working for my future. I know that I’m getting closer and closer to be financially secure, something my friend never was and probably never will be. I know that I will live my later years quite comfortably, because throughout my life I have worked hard to make sure this happens. If you are trying to save diligently and feel burned out from it, remember the following two sentences. Perhaps we are giving up many materialistic things right now for the future, but what we are gaining is piece of mind. We know what we are doing is the right thing for us, and nothing in life can substitute this feeling.
One day, I will declare my own independence day!
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{ 11 comments… read them below or add one }
The fun starts if you stop wanting the stuff you are not buying. I don’t know how I got there, I guess I have always been that way, but I keep finding out that I just have no use for most of the stuff that people around me own. I guess I just don’t understand consumerism. That frees me enormously: where other people would feel deprived, I just shrug and go on. That way, I can save a lot of the money that I earn and be financially independent in four years time when I’m 40. No need to work anymore from there on.
I am not materialistic but my girlfriend & I enjoy our current life while also saving for the future. We don’t buy a lot of junk or waste money on the newest electronic gadgets. I don’t want the clutter in our house. We do take 4 or 5 trips per year. We even save money on trips by staying at hostels & using frequent flyer miles or cheap airfare when we travel. Our cars are 4 & 5 years old but paid off. We do use a/c but keep the house between 76 – 80. So I think everyone needs a balance between the future & the present b/c who knows how long you will live.
fubek: You are almost living in a level “above” us humans
It’s great to hear that you will be financially independent in four years and can “choose” to work unlike us!
marylandterps: You are right in that we all need balance. It is definitely hard to do though since living good now is directly hurting the potential of living good later. Hopefully I can find a balance one of these days since I believe I’m more on the “save too much” side at this point in my life.
Eat, drink, and be merry. For tomorrow we may die.
But what if you’re unlucky enough to live until the day after tomorrow?
As in engineering, life is about trade-offs. In the short run, we have to eat. In the long run, we’re going to be dead anyway. We need to balance between the two extremes, and there is an opportunity cost to our decisions. Time is something you don’t get back. How will the choices we make today balance out over the course of our lives.
Personally, I think the proper balance is somewhere between having four cars, and risking heat stroke by not running the air conditioner in the one car you have.
Engineer: I believe balance is different for everyone. It is important to find what makes you happy with the consequeneces of your actions in mind.
For me, having a financially stable future is “very” important. At this point, it is more important than many other things. This may change in the future, but I can only comment on how it is right now. I may suffer because I don’t turn on the A/C, but I believe it is the right choice because I can in the future. I believe in imporving life over time, instead of having to worry about a degrading lifestyle in the future.
Well, I’m not anywhere above others, on the contrary. Sometimes it feels like I am missing the consumer gene, some kind of birth defect. I just don’t get it!
But it’s true that you have to balance your resources. For me, that is having time now for myself and for the ones I love instead of later, and to connect in a deep way. Work life gets into that way far too often and I have to remind myself to slow down.
I guess everyone needs to find out what’s truly important to him/her and just follow that need without thinking too much about the Joneses.
fubek: Don’t worry about not getting the consumer side of things. The pros of not having that “gene” definitely outweigh the cons.
I completely agree that we need to spend time with love ones. I often get so involved with the things that I do that I end up not spending enough time with my fiancee.
I should spend more time with the people I truly care about.
I really enjoyed reading this
Thanks for the inspiration!
JadeEJF: Glad you like the article!
You cannot forget to live. It is a fine line sometimes. Live life… you may die tomorrow. But don’t sacrifice your future as well.
KMull: Yes it is definitely a very fine line. Hopefully the more we read and write on personal finance, the better we will be able to balance our finances.