I believe that I have been misusing “financial freedom” to sum up my goal–thank you. I started regularily checking out your blog a few weeks ago, and have already sent the link to several of my friends and colleagues. Cheers.

A jet is an expression of how much money you USED TO HAVE before you bought that jet.

I agree that many people have allowed their jobs to “destroy their personal lives”, and all they’re looking foward to is retirement so they can do what they actually wanted to do with their days.

I don’t know what monogamy has to do with anything :) but sex definitely determines happiness levels more than money. That’s what most guys do with their money anyway… “buy” sex in one format or another, including picking her up for that date in the Porche and taking her out for that expensive dinner.

Financial freedom is very simple…

spend less than you earn

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Bill,
I like your definition of financial freedom - I have to think about that.
And about buying sex: The research that shows that sex increases happiness shows that this correlation only appears when you have a consistent, committed partner.
Penelope

I’ve been reading your blog for a few months now. I think you have some good things to say and I’ve been enjoying it, but you seem to be repeating yourself.

1. Do you think maybe you’re a little stuck on lumping the “baby boomers” into one large category and declaring them the cause of all evil? I’m 45 and don’t know where I fall in your generalizations about this.

I have always been more interested in work/life balance than the culture at large seems to be and have taken time off to do other things besides have a conventional work life - including a 6 month period living at a yoga ashram and 2 month trip to visit friends and wander around Italy. I have friends my own age and even (gasp) a few years older who also have not lived the more work at all costs oriented life you seem to be attributing to us. I like the way you also declare that no one “now” works too much at the expense of their personal lives.

2. You seem to be in a rut repeating this same data about positive psychology and this statistic about sex making us happy, etc. I feel as if I’ve already read the second half of this post a few times before on your site. Yes, positive psychology is trendy right now.

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Sarah,
Thank you for the thoughtful comment. I responded on a separate post, here: http://blog.penelopetrunk.com/2006/12/22/searching-the-soul-of-the-blog/

Penelope

Penelope! As always: a very good post! Your topics are always inspiring. And the part about happiness and a consistent, committed partner is great news! That’s what I call base-camp right there.

I want to take this opportunity to wish you a Merry Christmas and thank you for all your insightful posts.

Hey Penelope. I just wanted to comment, because when I started reading this post, I felt myself tense up a little and get defensive. I thought I would disagree wholeheartedly with this post, because I have spent a lot of time wishing for financial freedom, especially in the last year and a half.

But a funny thing happened as I kept reading… when you wrote that financial freedom is not a prerequisite for finding a job you love, and that we don’t HAVE to achieve financial freedom, I actually felt relief. Very unexpected. It’s fun to imagine what life would be like if you never had to worry about money and could spend what you want, but it also creates stress and negativity because it makes you focus on what you don’t have rather than what you have. And if you dare to set financial freedom as a goal, that’s a big whopping goal and it’s overwhelming to address it. I just wanted to say thank you for giving me permission NOT to achieve it. I didn’t realize how much pressure I was putting on myself.

To me, “financial freedom” is freedom from money, NOT freedom to buy whatever the heck you think will make you happy. And I agree with you, too, about the power of an optimistic approach to life’s challenges.

I believe there is a certain wisdom in the “minimal living” concept. Why buy a gigantic mansion when you can live comfortably in something much smaller if you just toss out all the crap you’ve accumulated? I know this is a little bit of a tangent, but I think many people don’t realize how happy you can be withOUT all the accoutrements of the “good life.” Are the only happy people the ones with flat-screen TVs?

My current goal is financial STABILITY, viz. the ability to pay for things that I need (a place to live, bills, food) with some left over for savings and the occaisonal indulgences (new clothes/shoes when the old ones start to get ratty, new appliances to fix the ones that break all the time, etc). I don’t want to throw myself into debt trying to live beyond my means. I know I’d be *much* happier just being confident enough in my finances so that I DON’T HAVE TO WORRY ABOUT MONEY. Having that financial confidence would be the greatest luxury imaginable. Sure, if an emergency comes up (natural disaster, life-threatening illness, etc.) almost everyone (excluding the fabulously wealthy or the ridiculously well-insured) will have to worry about money.

Hi Penelope,

Great article once again, network marketing and insurance sales (which I used to do), often stessed the importance of financial freedom. But I have seen many people chase financial freedom down the wrong alley and some end up cheating their clients or spend so much time chasing it that they neglect the people that they are earning the money for, their love ones. That is 1 reason I left insurance sales.

I do believe that earning $40,000 a year is quite optimal to lead a meaningful life, and my work philosophy has changed to making sure my work does not engage in activities that disadvantage others directly such as use of child labour and harming the environment etc.

I think financial freedom in my dictionary would mean contentment and the ability (time) to spend the money that I earn on the ones that I love.

Eric,
I write all the time about all the research that says that $40,000 a year is enough to be happy. And eventhough I really believe that, (based on my own experience) I only hear complaining from people that $40,000 is a crazy-low number. So it’s nice to hear that someone agrees. Thanks for the comment.

-Penelope

Penelope,

I’m a big fan of Seligman’s work. Here’s a link to a wiki where I’ve published a summary of “Learned Optimism”.

http://bookoutlines.pbwiki.com/Learned%20Optimism

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Chris,
Thanks for posting this URL. I took a look and it’s a great resource for understanding optimism and why it’s so important.-Penelope

much like a few above, i started reading a few weeks ago (after one of many LifeHacker links).

anyways, I agree with pretty much your entire post — can I borrow a couple grand? :)

I definitely agree with what you’ve written, and saying this stuff helps, but the problem goes farther and deeper. I’m a person who’s been saying this for some time (and more recently in a blog), but it rarely seems to affect people. Generally, just living that way and telling others that’s how you came to be in such a good position has more affect then telling (show don’t tell - always good advice), but even that doesn’t seem to impact as much as one might like.

Your mentality is your greatest determining factor in just about anything including money matters. I think people have such a hard time changing that and becoming optimistic because money issues seem so immediate and optimism is so not now, especially if you’re one of those who has trouble paying for essential needs. People breaking the magical $40k mark on the other hand, tend to see those above them, typically baby boomers, who are the “successful” people in their world, and they see workaholics who chase money over family and friends (generalizing as there are exceptions). So, these very comfortable middle classers follow their models, who are also many times their parents.

Added to that is a typical drive for better by gen X and gen Y’s taught to us by our baby boomer parents. In figuring out what better means we look to those before us, who more than likely got it wrong, which is why they taught us to be different. Striving for better is great, but often misguided. Figuring out how to give a better direction starts with this post on optimism.

Penelope,you are once again affirming your own choices to the detriment of fairness or reality.

Financial freedom means being free from having to work. Your income from Assets cover your expenses. Some people are lucking in they find a job they love. But alot of people out there don’t want a boss to tell them when to come in and leave and what time to eat. This is where the term financial freedom comes. I love psychology but I don’t want to be a psychologist. I love buddhism, but I do don’t want to be a monk and have my entire life dictated to me in a monastary. Basically financial freedom means I don’t have to work. I can work on my own if I chose. That’s it, it’s not complicated. It does not mean you are rich.

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Hi, Robert. 

Penelope

I think I understand where you are coming from - I experienced a similar ‘Eureka!’ moment when I read ‘Die Broke’ for the first time.

Based on my genetics and family history, I will probably live to be 90 years old. I am now 37, which means that in addition to paying hefty Social Security taxes for current retirees, I am almost guaranteed not to get those benefits myself. If I had the idea I was going to spend the last 30 years of my life not working, and furthermore actually be able to do FUN things during those last 30 years, I’d pretty much be wasting my life right now, working my butt off to try and save up the massive fortune that would require.

But I gave up on the idea, and it was a tremendous relief! I quit worrying about saving up so much money for my old age, and although I do live without debt, I am spending my money now and enjoying life - right now. As long as I am willing to live within my means and do something (at least part-time) to earn a paycheck throughout my life, I can relax.

I had cancer and now I’m living with huge medical bills for the rest of my life!

My “good” medical coverage doesn’t come close to covering my bills!

My New Husband didn’t realize ( I was just into remission so I didn’t realize the lifetime expense) marrying me meant on HIS CREDIT RATING!!!!!!!

My advice is I would have never married him if I knew what my CANCER BILLS would do to his credit rating!

This is very weak thinking that is based upon two false premises:

1. “…the idea of “financial freedom” means freedom from having to do a job you don’t like. But this thinking comes from the baby boomers who felt compelled to climb ladders doing jobs that destroyed their personal life.”

2. “Today you can hold out to get a job you love at the beginning of your career.”

Nonsense. The entire article is based on two assumptions that were created out of thin air. Both are sweeping, false generalizations without any basis whatsoever. Both are remarkably simplistic and naive, and the second is downright pollyannaish.

I achieved financial freedom at a relatively young age (51). I can assure you that it has been an incredibly positive, life-changing experience. And you can get there without “destroying your personal life”. In fact, the steps one takes to get there generally IMPROVE one’s personal life. And you can get there while working in a very meaningful, average paying job that contributes to society, and without any need to “climb ladders”. I know, because that’s what I did. And the people I know who have achieved financial freedom are among the most highly optimistic people I have ever seen! That’s why they were able to achieve financial freedom.

The person who wrote this article wouldn’t know any of this, of course, because she hasn’t achieved financial freedom (which certainly doesn’t stop her from claiming to have expertise on the subject). But if you want to learn something about financial freedom, ask someone who has done it.

Bottom line: Don’t believe a word of this nonsense about financial freedom being outdated or undesirable - or that “optimism” is somehow a replacement for freedom. It is a real contradiction to declare that “optimism” will somehow enable one to embrace the specter of dying at one’s desk. What is being peddled as “optimism” is actually defeatism and negativity.

There is an incredible world out there for those who have the time to embrace it. Take it from someone who is living it… never underestimate the desirability of financial freedom.