Climbing the Mountain of Financial Freedom

Imagine financial freedom, being free from the demands of work, as a mountain. We all start at the base, looking up. For some, the journey begins right after high school. For others, it starts after post-secondary education. But either way, the mountain looms above us all.

The Climb Begins

Those who go straight into the workforce after high school begin their climb earlier. Four years is a long head start, especially for those who go into skilled trades and begin earning solid incomes right away. They’re already gaining elevation while their peers are still in classrooms.

Meanwhile, those pursuing a degree are essentially stationary, loading up their packs with weight from student debt. When they finally start climbing, they move slower, burdened by the loans they carry. It’s a tough start, but the tradeoff is future earning potential. On average, those with a bachelor’s degree earn over $1 million more over their lifetime compared to those without one.

Not All Debt Is Equal

Debt is like weight in your pack, but not all weight is the same. High-interest debt, like 22% credit card balances, is dense, heavy, and crushing. It pulls you down with every step. Low-interest debt, like a 3% student loan, is more like carrying foam blocks. It’s still weight, but far more manageable.

Some people carry a mixture of debt types as they climb. The goal should be to shed the heaviest debt first, the kind that slows progress the most, while learning to carry the lighter ones until they’re paid off.

The Power of Helium Balloons

Now imagine the opposite of debt: investments. These are like helium balloons attached to your pack, helping to lift you up the mountain.

Some investments are stronger than others. A GIC earning around 4% is a small balloon, helpful but modest. Stocks averaging 8 to 10% are like weather balloons, pulling you upward with noticeable force. The more you have, the easier the climb.

Imagine a tradesperson earning $100,000 straight out of high school. With that kind of income and low debt, they can attach a fleet of balloons early on, gaining serious distance ahead of their university-bound peers. With enough investing discipline, their journey can feel almost effortless.

Balance Is Normal

Most of us carry some weight, in the form of debt, and some balloons, in the form of investments. That’s normal. Even a mortgage, while technically debt, is usually considered good debt since it often grows your net worth and builds equity over time.

But it’s important to avoid the dense stuff. Credit card debt is like strapping bricks to your backpack. It stifles growth, limits progress, and keeps you anchored at the base.

Choose Your Climbing Strategy

When you first enter the workforce, ask yourself,
Are you focused on adding balloons, shedding weight, or simply living for today?

Some ignore both debt and investing, choosing instant gratification. But the mountain isn’t going anywhere. Time keeps ticking, and while there’s no minimum time required to reach the summit, there is a limit—our own lifespan.

It’s technically possible to reach the summit by 30, though it’s rare and requires intense effort and sacrifice. More commonly, people reach the top around 60 to 70. But the further you delay the climb, the more painful it becomes, especially if you reach old age and still haven’t summited. Climbing with sore joints, no savings, and mounting medical costs is a harsh reality for many.

Everyone’s Mountain Is Different

Some mountains are steeper than others, depending on your lifestyle and financial goals. But unless all your friends are in the 1%, most of us are facing a similar height.

Just because someone hasn’t started their hike doesn’t mean you shouldn’t. Everyone will eventually look up from their phones and see the mountain looming above. Ignoring it doesn’t make it disappear.

The earlier you start, the easier it gets. A few balloons now, investments in your 20s, can make a huge difference later. Being halfway up with a light pack and a bunch of strong balloons makes the summit not only achievable but even enjoyable.

Final Thought

The mountain of financial freedom is real. You will face it someday. Whether that climb is steep and grueling or smooth and steady depends on the choices you make today.

Start early. Drop the heavy debt. Add a few balloons. Your future self will thank you.

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