Financially Secure > Financially Independent

in LeoFinancelast month

Many of us dream of arriving at this destination called financial independence, where we let loose or break the "work for money" chain.

I think it's a dream that's often portrayed as the pinnacle of financial success and freedom, especially in our current world. To me, it seems like something that's both attainable and unattainable at the same time.

That said, I think that financial security may be a bit more practical and sustainable goal for many of us, especially against the backdrop of a world that's inherently unstable and unpredictable.

For one, financial security is usually about having the means to cover our essential expenses and build a reasonable buffer against life's uncertainties.

Having the flexibility to navigate the ups and downs of the economy and personal circumstances, without being beholden to a single, fixed state of "independence".

In that sense, financial security allows us to take things one step at a time, on an ongoing basis, without losing the main plot of life, so to speak.


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One Hit Wonder

In contrast, financial independence often implies a one-time achievement - a finish line that, once crossed, may not be as easily maintained.

As mentioned above, the world is inherently unpredictable and uncertain, and even those who have attained financial independence can find themselves facing unexpected challenges that threaten to erode their hard-won status.

Already, there are countless stories of individuals who achieved financial independence only to lose it a few years later, either through their own missteps or due to factors beyond their control.

This tells me that portraying financial independence as the ultimate escape from the 9-to-5 grind is frequently presented as a binary state: you either have it or you don't. In many ways, this all-or-nothing approach is detrimental because the reality is far more nuanced.

Yes, achieving a specific net worth or passive income level might provide financial freedom and focusing on a singular destination—that magical number in the bank account—can be a great way stay focused amidst the many distractions life throws at us.

But think of the individual who diligently saves and invests, consistently building their net worth. They may not be financially independent in the strictest sense, but they possess a level of security that allows them to navigate life's uncertainties with a bit more confidence than the person who has arrived and is afraid of losing it all.


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Spill Over

Besides, the pursuit of financial independence of nowadays overshadows many other aspects of life. The relentless focus on accumulating wealth effects personal relationships, health, and overall well-being, which sometimes, when we reach the destination realize that it may not be worth it after all.

What I'm saying is that by shifting the focus from a singular, potentially unsustainable destination to a continuous process of building financial strength and resilience, we can create a more adaptable financial future for ourselves.

Perhaps also, financial freedom is not simply about escaping work like we've been led to believe, but more so about having the autonomy to choose how we spend our time and energy, regardless of external pressures or without being beholden to the elusive and precarious nature of modern financial independence.


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Perhaps also, financial freedom is not simply about escaping work like we've been led to believe, but more so about having the autonomy to choose how we spend our time and energy

This has always been my definition of financial freedom. I think it’s the best way to think of it.

Already, there are countless stories of individuals who achieved financial independence only to lose it a few years later, either through their own missteps or due to factors beyond their control.

The unpredictable situations of life affects both financially independent and secure individuals. On this basis, I think abolition the all or nothing definition of financial independence should umbrella financial security as well. So basically, we should have very flexible definitions and expectations of what either can look like, and not spend our entire lives chasing what the majority of people have painted of them for us.

Right, when we just enter the workforce, we have all these constructs of what things should look like or even the ways to possibly achieve them. And sometimes, we can get so fixated on them to the point that we think they're inflexible definitions or outcomes. I think the process of deconstructing and reconstructing such concepts can help tremendously in not getting carried away by the headwinds of society.

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I wouldn't consider financial independence a point after which you just stop and look at the stars. Things can change abruptly, and no amount of investments or wealth is enough under the wrong auspices. I would consider financial security a step toward financial independence. But for many, it is the step they are happy to reach and maybe don't even dare to think beyond that.

Yes, sometimes, I tend to view it as driving a car, when you reach financial independence, the car becomes semi autonomous, you can sit on the passenger or back seat, but just don't sleep, lest the car crashes.

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I like your analogy! Indeed, that's how I see it too.