How Vivid is ‘Your’ Idea of Financial Freedom?

“I had a considerable passion to get rich, not because I wanted Ferraris – I wanted the independence. I desperately wanted it.” – Charles T. Munger

Earlier this year I finished the Charlie Munger biography ‘Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger’ by Janet Lowe. It is one of the best biographies I have read. The depth of access into Munger’s life, past and present, is amazing. I always know that a book is worthwhile when I come away from it sharper than when I started. An excellent choice for any of you readers.

While I took a lot away as an investor, one part stood out more than the rest. That is Charlie’s pursuit for personal independence. Many things in our lives are controlled by a paycheck: where we live, where our kids go to school, what kind of car we drive, where we go on vacation, how long we stay on vacation, etc. Some may read that and disagree. Don’t believe me? Then, let’s reverse engineer our lives. Would you still live in the house your living in if your paycheck was 50% more? What about where you vacation? Your car? Freedom allows one to get a paycheck from owned assets, therefore providing freedom of choice.

What is Freedom for You?

I have always been convicted by financial freedom. For Munger, it is his ethos. Freedom is the idea that one can control their calendar and time. Wake up when one wants. Spend time with people of their choosing. Take lunch when their body is good and hungry, rather than when a boss tells them that they should be hungry. Coach a son’s little league team rather than rush into the next board meeting. Attend a daughter’s dance recital rather than mandatory company happy-hour. Enjoy the freedom to focus on what one is called to do rather than what the living expenses demand one do. Freedom is an infinite number of things. I don’t know what it is for you. The beauty is that once achieved, you get to decide.

Financial freedom starts by making decisions today to build an asset that cash flows, thereby putting your future self in a position to reap the passive rewards of that cash stream. I plan to discuss my strategies in later articles but it starts with painting a picture of freedom. What does that look like for you? Can you see it when you close your eyes? Do you have your first day of freedom planned out? Happy painting!


 

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4 Replies to “How Vivid is ‘Your’ Idea of Financial Freedom?”

  1. I am getting close to achieving financial freedom. I think the whole “I want a Lamborghini” is just a part of my image for financial freedom. More importantly, I can imagine myself travelling anywhere in the world wherever I want. I want to be able to do whatever I want, whenever I want, without financial concerns.

    1. Holden Alexander says: Reply

      I want to be the first to offer you a congrats on being so close to achieving FI! That is awesome. I think a lot of us share the same dreams and desires. A Lamborghini would be awesome, wouldn’t it? I concur. The freedom to use your time any way that you please is what makes it “freedom.” Thank you for stopping by!

  2. Thanks for pointing out this book – I’m a huge fan of Charlie Munger and his philosophy on both life and investing, I’ll be sure to add this to my reading list.

    For me, conquering my finances has always been about freedom as well. The freedom to wake up each day and choose how I want to spend it is simply to alluring to not pursue. The idea of being my own boss and being in control of each day to me is the greatest thing money can buy.

    1. Holden Alexander says: Reply

      I could not agree more. The ability to control your time is a worthy pursuit.

      And yes, the book is a great read!

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