True Indication of Wealth

Stereotypical Wealth

Most would think of a large house and fancy cars. Vacations 6 times a year. Eating out at 5 star restaurants while wearing Armani and owning a yacht. Well, yes and it is definitely Wealth and a lot of it at that, but that is the top 1% and not remotely achievable to the average person. But there is another type of wealth that I would argue is even better than all the Bugatti’s in the world and achieved by the common folk.

Financial Independence

When you have enough saved in your piggy bank you don’t need to work. When your paycheck is not a requirement of life and simply existing with all our many bills to pay. Financial independence is, “... a state where an individual or household has accumulated sufficient financial resources to cover its living expenses without having to depend on active employment or work to earn money in order to maintain its current lifestyle” (Wikipedia). It is the ultimate form of freedom and wealth. Sure people with the stereotypical wealth may not have to work, but many of them still work long hours, addicted to progress. 

Working part time or simply working because you want to, is wealth. Having freedom to spend time with your children and not just simply see them at the beginning and end of your day is wealth. Teaching them hands on skills yourself, maximizing the little time we get with them while they are young for such a short time. Think of the hobbies you would start, books you would write and places you would see if you were not tied down to a job for 8+ hours a day.

Financial Independence is the greatest form of wealth and should be the goal of everyone. 

Something to note, *If everyone retired at 30, the world would be in trouble with no working class to produce all the goods and services, but we did not design society so just abuse the fact that it's possible. 

In Canada the average retirement age is 64.6 years old. The life expectancy for a Canadian is 81.75 years which leaves 17 years to actually be retired, not to mention that is when your body starts to break down, lowering your freedom to travel or do physical hobbies. 

Financial Independence, Retire Early (FIRE)

There is a movement that wants to educate others about living life another way within the bounds of our society. It is a program of extreme savings and investment to big up a retirement nest egg much earlier than society dictates. Individuals following the FIRE model have retired in their 30s leaving 50+ for retirement. It takes extreme discipline to minimize expenses while maximizing income but if achieved can radically change one's life trajectory.

The best thing about Financial Independence is that it is not just a fairy tale of the rich. Everyone, the 99% can achieve it. You may lack a fancy car, and a large house. But you will have complete freedom from debtors and employers. You could continue working if you enjoy work, but you have the knowledge that if one day you find your job unsatisfying, you can walk away with no fear of how you will pay your bills. 

That is Freedom, that is Wealth.       

If you found this helpful and would like help budgeting or investing please email me at TaylorMckeeCoaching@gmail.com