Financial Independence
In its essence Financial Independence (FI) means having enough funds, savings, investments, or income so that I do not have to worry about paid employment again. It will eliminate the worry. The worry of will I have a job this time next year, or even next month.
Being dependant on an employer makes me very nervous. In previous roles I have seen first-hand how easy it is for the executive team to cut staff numbers. Even those roles that you would think were essential to a successful enterprise can be cut, slashed, annihilated.
If it will result in the business surviving or to even increase profit, do not count on your job being there for you.
You worked every holiday and stayed late at the office.
Nobody cares.
In work you are replaceable.
Take some sick days because you are ill? You should expect that to result in a black mark against you. You will be thought of as unreliable and not a team player.
Want to spend the holidays with your family after a tough year? No chance, if you want a promotion in the future. The competition for your role or even your next role can be anyone. Companies that “believe in rewarding their long-term employees for their service” will easily hire from outside for the “Dynamic” (young), “Committed” (no life outside of work) model employee (walkover). Chances are they already know that person through a professional network, so if you cannot schmooze you will lose.
To counteract this, you need to be prepared for when the time will arrive when you cannot get another job with a similar package. When the only roles available are far from ideal, or for when you just cannot stand pretending to care about everyone’s weekend plans for one more second of the day. When the small talk and chit chat drives you insane because its just farcical.
I have not yet reached Financial Independence, where my savings and investments will be enough to sustain me for the rest of my life.
I am working on it.
These are the reasons why reaching Financial Independence is important to me:
- I will spend more time with my family
- I will have the ability to choose what I want to work on
- I will not have to answer to a boss
- I will have the time to learn new skills
- I will have more time to spend on my health
- I will have time to read
- I will have the time to travel
- I will have the time to do absolutely nothing if I want
Reasons will vary from person to person. If it is important to you then it is important.
Essentially, I want to be in the position where I no longer must trade my time for money.
So that when I choose to work, I work because I desire it. Not because I must.
I want to be able to choose how I spend my time. Not have it dictated to me because I must work to earn money to pay the bills.
I have a real longing to never be poor again.
To never have to make desperate choices, fuelled with heartache.
In its most simplistic form that is what it boils down to.
I never ever want to be poor again.
How Have I Prepared Myself for This FI Journey?
Unknowingly over the years I have armed myself with the necessary tools.
Worked Hard and Performed Well in Paid Employment
I did what needed to be done, whether that was extra hours or the really sucky jobs.
Importantly I delivered and could be relied upon to always deliver. Doing so meant I progressed to better roles.
Roll forward the years and now I have a good history of employment and an above average salary.
Continued Education
Education is Key. It really is. Even if you lose everything you will still have your education.
After completing my geoscience degree, I took a year off from studying, after which I then attended evening school while working full-time during the day.
I qualified as an accountant, obtained another degree (this time a first-class degree in applied accountancy), became a chartered accountant and have gained valuable professional accreditations. This meant that I could command a higher fee as an employee. I can sell my time for more money. Gone were the days of the £3.35 hourly wage I commanded at 16 years old.
All this was while working full time hours. It was incredibly hard work, finding the motivation to study when I was so tired after a full day.
At this point I now had a good understanding of money and finance, but remained completely clueless about Financial Independence and the FI movement.
Not until I started to explore where I should invest my money, did I find the blogs, podcasts, and documentaries, that opened my world to the idea of not being stuck on this endless hamster wheel, of work, stress, and debt.
Self-Belief
When you believe in yourself you can accomplish so many things.
My thought processes developed and matured. My paradigms changed. I began to replace the I want to I AM.
I am the type of person who saves.
I am a person who invests in my future.
I am going to succeed with my goals.
I am going to reach Financial Independence.
I know the journey is long. It felt endless just to reach this point. The important thing to remember is that the time is going to pass by regardless. Where do you want to be in the future?
If you continue doing the same things you have always done you will keep having the the same results.
Or…
Make the changes you need to make.
Live the life you deserve.
Reach Financial Independence so that you can decide what you want to do with your very own life.
The choice is yours to make the hard decisions that will result in an easy life.