Why I want my Financial Independence
Hi!
I came across Financial Independence as a concept on Reddit when I was in college. The idea of investing money and then not needing to work till 60 was very appealing for the 21 year old undergrad. I wrote about my experience with trying to save aggressively and as a young’un and how it wasn’t really sustainable. I now invest at a sustainable savings rate and don’t track my expenses anymore.
Over the years my relationship with the goals of financial independence have evolved. With settling down in my career, getting married and parents nearing retirement, my motivations have shifted to expand the sphere of FI to include more folks than just me.
Now in the cheesy spirit of India’s 75th Independence celebrations, here are some of my goals which I plan to achieve through financial independence.
1. Financial security
I don’t want to worry about not having enough money for the future.
I want to be able to spend money for any of my needs without any worry of running out of money when I’m old. This doesn’t mean I can spend extravagantly, but more about me being confident that if any emergency or unexpected purchase comes up, I have money without going into debt. I can then adjust my spending later to compensate of any shortfall.
2. Work for my pleasure
I don’t want to have to work for money.
I want to be able to set my own rules on when to work, and how much effort to put that day. Some days I might be motivated to work, and some days other things might take priority. I might also want to take breaks for extended periods.
I want to be able to spend my time the way I want to.
3. Be independent in retirement
I want a life of dignity for me and my wife all through retirement.
I want to be able to live without financially burdening my child with big ticket expenses to spend on their parents. Healthcare costs are only rising, and it’s unfair to pass on responsibility to take care of us when they’re just gaining their footing financially. I don’t want to force them to take us in if we don’t have a place to stay, or can’t stay without help.
4. Quality education for my child
I want to provide the best education possible for my child
I might not be able to accumulate a large enough corpus that my future generation don’t need to work. So a quality education is the next best asset I can provide to enable them to have a good quality of life. I don’t want them to be stressed about loans right when they graduate, so that they can think about their career more than their income. I want to be able to fund at least their undergrad and post-grad education if they choose to study in India, or their undergrad if they want to study abroad.
5. Life of dignity for parents and parents-in-law
I want to take care of my parents and parents-in-law in retirement
My parents and parents-in-law did not have the resources to allocate their money optimally for retirement. They did not have the financial instruments like index funds, or easy access to financial resources like the internet or good quality financial advisors. They took good care of us and provided us with a platform to succeed, so it’s our responsibility to help them spend their retirement with dignity when they need it.
Wrapping Up
Financial Independence unlocks different opportunities for me to spend a life of fulfillment. It allows me to set my kid up for success. It helps me help my parents and in-laws if they need any assistance when they’re old.
I’ve been lucky with my education and income, and financial security is the least I can provide my family for their well being.
Until next time!