It’s been said many times that “there’s no free lunch” in life.
But I’d say financial freedom comes pretty close.
Although there are drawbacks to consider (some of which could be significant), the benefits of this lifestyle, in my experience, far outweigh any potential drawback.
After quitting my full-time job more than three years ago, and after reaching financial freedom more than a year ago, I’ve had some time to experience much of what financial freedom has to offer. Reflecting on that, I wanted to reveal my three favorite benefits of financial freedom.
Creating And Living By My Own Schedule
Creating my own schedule is probably my favorite aspect of financial freedom.
For years, my alarm would blare at me at around 6:00 a.m. or so.
I remember our Chihuahua, Diego, would be startled by the noise, and he would look at me weary and confused. I always imagined this thought bubble forming around his head, saying something like: “Man, you cray.”
Agreed, Diego. Agreed.
“Must have woke up on the wrong side of the bed” is what people think when you stumble into work, very early in the morning, still groggy and sleepy.
But how does one not wake up on the wrong side of the bed when their peaceful and wonderful sleep is interrupted by a screaming machine in the middle of the night?
It’s funny. I still sleep on the same side of the bed – in the same bed, no less. Yet I wake up on the “right” side of the bed every day now.
Indeed, waking up without an alarm clock is one of my favorite things in the whole world. It’s worth almost an unlimited amount of money to me. It’s certainly worth at least hundreds of thousands of dollars, as the passive and growing dividend income my dividend growth stock portfolio generates on my behalf forms the foundation upon which I currently enjoy my alarm-free existence.
I now go to bed somewhere between 1 a.m. and 2 a.m. And I typically get up around 10:00 a.m. or so. If I were a morning person, I’d go to bed earlier and wake up earlier, but I’m a night owl by nature.
One of the best benefits of this lifestyle is that you get to totally customize your schedule to your liking.
You’re able to wake up when you want, work when you want, run errands when you want, relax when you want, hit the gym when you want, go to the beach when you want, and go to bed when you want.
It’s all about what works for you (and perhaps/probably your family), not your employer. And that’s a pretty wonderful feeling.
Choosing And Tackling Challenges Of My Choosing
This is huge.
While some websites out there portray early retirement/financial freedom as some kind of never-ending vacation where you simply travel the world indefinitely or just spend endless days at the beach, my experience indicates that this isn’t a great long-term approach to the lifestyle.
Most people who are built to attain financial freedom in the first place are probably going to be quickly bored without ongoing challenges in their life.
I believe it’s actually the huge challenge that is reaching financial freedom that attracts a certain subset of the population.
But that thirst for bettering oneself and reaching new heights doesn’t end when one reaches the top of the mountain that is financial freedom. Instead, one realizes that it’s just one mountain of many. It might be the best mountain of all (because it allows you to access those other mountains much easier), but the desire and will to climb doesn’t end once reaches the top.
If anything, it’s the strong likelihood that those who reach financial freedom early in life will continue to challenge themselves that makes the “early retirement math” debates largely useless.
Relaxing for a bit after a lengthy career is wrapped up is deserved and sensible. But once one is refreshed, new challenges will naturally be pursued.
And it’s aligning one’s lifestyle and interests/skills with the appropriate challenges at the appropriate time that makes financial freedom so special and amazing.
For instance, I took a CPR class this past weekend, which is part of the training necessary to achieve my personal training certification. It’s a new skill. It was fun. It was slightly challenging.
Part of the personal training angle, in all honesty, is just additional motivation for me to be the best physical me I can be. After all, I’m the kind of person who “walks the walk”. I’m not going to tell anyone to do anything I can’t personally excel at. As such, one challenge I’m really enjoying right now is working out six days/week and seeing just how far I can push my body.
And I’m writing this very article from a Starbucks near my apartment. It’s 1:00 p.m. on a Tuesday. I’m here in “my happy place” doing something I love, just writing away while jamming along to some music and drinking an iced caramel latte.
Writing can be challenging. I’ve been at this for more than six years now. It’s not always easy to conceptualize new ideas and put everything down on paper in a coherent and inspirational manner. But I thrive on the challenge. I enjoy it. And it’s aligned with who I am. Moreover, I’m able to work when I’m most inspired. If I didn’t feel inspired to write this article today, it wouldn’t be written.
I also coach people through financial and/or personal issues that may be hindering them from reaching financial freedom. Every call is a new challenge. It’s a new opportunity to better myself and others around me. And it feels great to be in a position to help others. It’s something I’d want to do even if I had billions of dollars in the bank.
I used to wonder why really wealthy people continued to work.
Why does Warren Buffett show up to 3555 Farnam Street in Omaha every weekday?
Well, I now know. It’s because people like Buffett thrive on the challenge.
But they only thrive when the challenge is right.
That’s the key to the whole thing.
I’m able to choose the right challenges for who I am. And as I change and grow, it’s likely the challenges will change and grow.
Financial freedom doesn’t exist in a vacuum. It’s actually quite organic. It not only allows you to grow and change, but it grows and changes alongside you. It’s like a friend that walks beside you in life, unlocking new doors as time passes and as you become ready.
Having The Opportunity To Change The World Through Philanthropy
One door that will surely unlock for me over time is large-scale philanthropy.
While I give money to select organizations that operate in areas I care about, the money I currently give isn’t very much (at least relative to what I’d eventually like to give).
But as my wealth and passive income grow over the course of my life, I suspect I’ll be able to give away a rather significant amount of money before/upon my death. In fact, I’ve already pledged to give away at least half of my wealth to philanthropic causes.
This world has a lot of issues. Humanity arguably does more evil than good in the universe, but I look at philanthropy as a tool to tip the scales – even if it’s just a little bit.
While this planet would probably be better off without humans, I’m determined to be the best human I can be for as long as I’m blessed to be here. I’m part of this species, whether I like it or not. And so as an eternal optimist, I look at that as a challenge (and a gift) in and of itself. It’s up to humans to improve the human condition.
Moreover, I know that one doesn’t need to be rich, famous, or superpowered to be a superhero in this world. One can effect change all by themselves.
But if one can take action, one should take action. With great power comes great responsibility. And I look at the eventual wealth and income I’ll build over the next 30 or so years as an opportunity to make good on that.
The last 1/3 of my life will be dedicated almost solely to philanthropy, both through volunteering and financial giving/support.
Meanwhile, I get to indulge in minor philanthropic giving here and there as I grow older and move closer to that eventual larger-scale goal.
One of my personal heroes is Charles Feeney. The guy could have spent his billions on yachts, jets, and fancy dinners. Instead, he left a permanent legacy behind and stayed true to who he really is. I can only hope to stay so close to that model.
Conclusion
Financial freedom is what you make of it. You may enjoy the same things I enjoy. Or you may find that it’s very different for you. Every perspective is unique to one’s own eyes. We all experience this world individually.
However, I think most people who become financially independent at a rather young age will find that creating their own schedule, working on the right challenges at the right time, and being able to positively impact the world in a lasting way are three of the best benefits of this lifestyle.
Even if financial freedom offered only these three benefits, it’d be something worth working incredibly hard for. But these are just three benefits of many. How many you personally experience is up to you. And discovering them all is half the fun!
How about you? What are you most looking forward to once you reach financial freedom? Are you already financially free? Do you agree with these three benefits?
Thanks for reading.
Image courtesy of: digitalart at FreeDigitalPhotos.net.
I’m close to five years into FIRE. I’m still making up what it means as I go along. I like it that way. I guess freedom to not have to conform (to standards, schedules, dress codes, whatever) is what I enjoy most.
FV,
I hear that. I also like not having to worry about dress codes, quotas, etc. I guess that’s what I meant by working on the right challenges at the right time. When you’re doing things you enjoy, there are no “standards” to conform to any more. It’s your standard, or you’re not going to do it. You’re the boss, more or less.
Thanks for dropping by!
Cheers.
I’m looking forward to having my own time, and spending time with my family how we want to spend it. Also, helping out others with volunteering work for a few hours a week.
The lifestyle i am most looking forward once i get can say i am financial free is traveling. I love to travel. I always feel like i learn something new about myself when I travel.
another great post. thank you.
FV,
Traveling is definitely nice, if you’re into it. The great thing about financial freedom, as it pertains to traveling, is that you don’t have to worry about rushing through a trip. Even if you’re able to take a full two weeks off from work to go somewhere, much of that time is spent getting ready, going to your destination, settling in/adjusting, and then getting back home. If you can take, say, a month off (or longer) to go somewhere, that actually gives you time to immerse yourself.
I wrote about this a while ago, back on DM, but the typical American’s view on traveling is just going to some resort for a week or so. That’s not really travel, in my view. If you can actually spend a month or two somewhere getting to know the local culture, that’s a much more robust experience.
Best regards!
ooh yes I agree with you. When I take a week or two vacation, I feel so rushed. Thats why when people come back they say “I need a vacation for my vacation”.
Jason,
Financial independence has given me many opportunities to choose but more significantly allows me to be who I should be. I had been working in the industry I had never liked and had been working with/for many people with wrong attitude. I no longer need to worry about them. To put an end to my career, I completely deleted my LinkedIn profile and am no longer found in the industry.
Charles Feeney’s story is amazing. I am still a beginner in the FIRE and need to ensure that we are able to maintain our living standard but would love to donate (return) some of my assets to my university and other non-profit organizations in the future. I strongly believe that investing in the younger generation would be beneficial for our society.
All of the negative things behind now, I just follow my passion (gastronomy for now) and whatever I want to pursue in my life. I eventually want to travel the world for a few years and want to gain some cultural experience.
ER2019,
Yeah, Charles Feeney is a hero of mine. He’s done some amazing things. The guy has no car, lives modestly in SF, and left himself and his wife just $1 million to get by with for the rest of their lives. This is from what was at one time a fortune worth many billions of dollars. But he didn’t want it. He likes a simple life, regardless of the money. I feel a real kinship to that. 🙂
Following one’s passions is really where it’s at. If what you do is your passion, you’re set. However, most people aren’t able to align passion with money, at least not via a traditional job. But financial freedom allows one to make that alignment happen, regardless of the money. What I continue to learn (and write about) is that much of this is all regardless of the money. It’s those who let money control and consume them that end up unhappy.
Best wishes.
J –
Nice share here Jason. What’s interesting is how many of these can “cobweb” into other areas as well. The high level of these three critical reasons is huge. I couldn’t agree more thatn thriving off of the the challenge more than fuels additional challenges afterwards – except – without the 9-5 you are more than likely going to be striving for challenges with a very un-restrained effort. Cannot wait to get to that tipping point. Appreciate the article, as always, go for the Americano though, that creamer will kill you! I kid, I kid, I’m sure working out 6 days a week should allow a few delicious drinks : )
-Lanny
Lanny,
Yeah, absolutely. One challenge leads into another. One opportunity or chance taken can lead to all kinds of amazing things down the road. Yet very few of the things I’m now doing would have been possible (at least not very feasibly) back when I had a traditional full-time job. But once you have those resources at your disposal, you can branch out and put yourself out there. Plus, the fear of failure is scaled way back when you know that you have a parachute to count on (via that large passive income source) in case the leap goes wrong. 🙂
Thanks for stopping by!
Cheers.
Ah, great point on the fear of failure as well. VERY true there.
Loved the article. I’m just starting out on my journey to financial freedom. I pretty much just have one year in. So I have a long way to go. It’s almost hard sometimes to imagine financial freedom. I wonder if I will ever get there. But if I had financial freedom today, I would definitely travel. But I would also spend a majority of my time gaming. I would try to find the time to get skilled at games like Statcraft or role playing games. Plus I would spend the time to learn how to dance. I could do all of those things now but my time is limited because of work. It’s good to imagine every now and again and it’s a good reminder of what I’m working towards.
DP,
That sounds good. One of the fun things about financial freedom is figuring out what it means and looks like to you. We’re all going to take away different advantages and benefits, and we’re going to spend our valuable time differently, depending on our own unique situations. Financial freedom allows for a lot of life customization. 🙂
I do a little gaming here and there. I mostly just play Call of Duty. Even though I don’t jump on too often, my competitive spirit means I take it pretty seriously. My kill/death ratio is over 3, which puts me pretty far up there in terms of global stats.
Cheers!
I’m looking forward to being able to do what I want to do. If I want to work at home one day, I can do it. If I wanted to take an extended vacation, I’d be able to do it. I also would get a chance to give more back to the community.
Jason,
Absolutely. Financial independence allows you to hack your way through life. You’re able to totally customize your schedule – activities, family time, work, etc. It’s all built around what allows you to be the best you possible. I truly believe being able to wake up when you want, work when you want, and do pretty much anything and everything when you want is one of the best luxuries in this world. I’d much rather have that ability than a mansion or a sports car. It’s not even close.
Best regards!
Love hearing about how you’re enjoying FI. I’m about halfway or so. 5 years from now, I should be able to see it happening soon for me too! Going to bed at 1 instead of 10:15 (my current bedtime) sounds wonderful, I’d like that too. Also, I used to write (and record) songs and play my guitar a lot more than I do now. I enjoyed that quite a bit, it’s an amazing feeling to write something good (not very often, but now and then 🙂 so that’s definitely something I want to try again.
Mika,
That’s awesome. Even being halfway there is a fantastic life position to be in. Covering half of one’s expenses via passive income at a relatively young age is something that very few people in this world are able to experience. I’ve talked about this before, but most of the benefits that full financial independence confers start to appear around that mark. I’d say there’s very little difference in one’s lifestyle between, say, 80% FI and 100% FI. So you’re right there.
Definitely hope you’re able to play the guitar and write songs once you’re where you want to be. Allowing your creative side to flourish is such an awesome feature of this lifestyle! 🙂
Best wishes.
I enjoyed my career when I worked full time and it paid me generously and allowed me to retire early financially free. Even saying that I do like my new life of the last couple of years much better. I made the decision to stay involved in the business and political world I inhabited in my previous career to maintain my personal brand. I find a mix of paid side gigs that leverage my network of contacts and volunteer roles that give back to society to be very satisfying and mentally and socially necessary to keep me motivated. I have a brother in law, extremely wealthy guy, who unplugged completely from a major corporate role much larger than mine, and he is constantly regretful that he retired when he did with no clear goals for his future. It really makes a difference if you have a plan for your future.
Steveark,
Yeah, that’s a great point. If you just unplug with nothing going on your life otherwise, that’s not a great spot to be in. But I think that speaks to the problems with the corporate drone life. If all you have is your job/career, that’s not a very rich life. And yet that’s all a lot of people have (even forming their identity by/with it) because the grind can suck up such a substantial portion of one’s resources. There’s something to be said for having balance in one’s life. Balance can come at great financial cost, but I’ve learned that money accounts for very little of one’s happiness/value in this life. Once you see where much of the real value and happiness comes from, you can plan for things way ahead of time and be ahead of the curve.
Thanks for dropping by and adding that!
Cheers.
Great post, Jason!
I’m most looking forward to the having more time to manage my dividend portfolio and blog once I reach FI.
Like you, I’m also looking forward to creating and living by my own schedule. From my perspective, life can be truly amazing when you create your own schedule and personal challenges to work on.
I 100% agree with this post and I’d expect to get more interested in philanthropy if I had more free time to give too. Thanks for the motivation! 🙂
Graham,
Thanks. Glad you enjoyed it!
Yeah, life is really amazing when you kind of go about it as you wish, doing what you want when you want. To me, setting your own schedule is just the best thing. It allows you to start each day off right. Everything else falls into place when you get off on the right foot each day. It creates this great environment ripe for more personal happiness and fulfillment. It’s a luxury that I now couldn’t imagine living without. 🙂
I’m sure you’ll enjoy spending more time with investments and writing once you’re there. And I’m pretty confident you’ll develop/find new passions that you’re not even aware of yet. That’s part of the fun.
Best regards!
Hey Jason,
Great article. I’m close to financial freedom, but unfortunately most of it is in my retirement accounts (Roth IRA, IRA, and 401k) so while I have a large chunk of change there I don’t have access to it for another 23 years until I’m 59.5. My investment account is just shy of 60k now so I’m not financially free, but I’m working on it as I’ve increased it by 20k so far this year after maxing out my Roth. I’m looking to push that up to about 500k before I walk away, which means the rest of my accounts will likely be closer to a million, but that gives me a nice cushion in case the market tanks or health care becomes even more of the roller coaster that it is now. I figure when I retire I’ll probably go your route into personal training as I’ve done it for friends and I genuinely enjoy it. I’ve helped friends lose 60-70 pounds in six to eight months and it was very rewarding for both of us. I do struggle with the whining of some clients as I’m more you’re going to do this and not cry about it because you’ll thank me later. I also think I’ll do a fair amount of reading since I don’t get to do as much as I’d like to now.
DD,
I can imagine struggling with some personal training clients. It’s sometimes hard to sympathize when you’re the type of person to just give it all you’ve got and do whatever is necessary. A lot of people aren’t built like that, which is why there’s a need for personal trainers in the first place. But I’ve really had a lot of sympathy (and even empathy sometimes) for people in the personal finance space, so I think (or maybe hope) that will translate well.
Reading is also great. I spend hours every day just reading all kinds of stuff. It’s a great pleasure. If there was some part-time job out there that allowed me to just read whatever I want for 4-5 hours per day, I’d probably sign up. 🙂
Cheers!