Financial Independence (Freedom)

This term, albeit popular these days, has become another great misnomer within American Society. From the growing number of new businesses established in America, to the Great Resignation Era, the phrase "Financial Independence" has become very popular among the newer generations.

For some, "the long race to the end" paradigm that is associated with corporate America has lost it's luster due to various reasons. Inadequate leadership, as well as insufficient growth opportunities, have resulted in many working class Americans finding more ways to place bets on themselves.

Having completed one term of lengthy corporate growth, I would caution those who don't find the value in this model; as it provides structure and protections that we may not be in position to provide for ourselves.

Furthermore, I would caution those to truly understand what it means to be financially free, and what it requires. Does one become financially free and remain there? Does one truly understand how to measure financial freedom when establishing this as a goal? Does reaching financial freedom have to co-exist with a resignation from a job; or does a deeper meaning exist between this correlation?

Here at The Jones Group Of Western New York, the following aspects of Financial Independence are examined when discussing this with clients:

1. SGI (Sufficient Guaranteed Income): One cannot have financial freedom until they have guaranteed income that is earned in the nature that involves little to none of sweat equity. Furthermore, just having this guaranteed income does not assure one's financial freedom. This guaranteed income will need to be sufficient to pay any debts/bills on time and also provide one a means to continuously grow their net-worth until Death. Yes, until Death. The race isn't won when one steps out of "work". I have seen many fortunes snatched away in nursing home bills and hospital bills when one has gotten sick and did not put into place proper protections of their assets.

2. Independent Heirs: Once you have crossed the finish line, you have to be ready to unplug the vacuum cleaner. As a parent, it is never easy saying "No" to your child's requests. I have also seen in my life and professional career that the duty of this parenthood lasts over decades. Ensuring financial success in your children's lives, such as, starting a college savings fund or introducing them to the world of sciences much sooner, protects you financially. Your wisdom will optimize the amount of legacy you leave to your heirs, only if your children do not unnecessarily impose on your plans, especially in their adult years.

3. ROI (Return "Of" Investment): This section is certainly not what you think. In my time building relationships with those who have reached financial freedom, I have discovered that the quest for money and large gains can become mundane; particularly when sustained success has been reached. They have built a machine that requires little fuel to operate, and therefore, they are successful during good and bad economic conditions. In light of this, many have sought to join some meaningful efforts in life because they have understood that their money cannot change the world. Whether it's building an all girls school in India, or traveling to an earthquake site to help locate survivors, being very active in philanthropy is a duty that many of the affluent take on given their independence.

The road to reaching Financial Freedom does not mean one has to leave corporate America and work for themselves. Often, this association has led to the misunderstanding of what it truly takes. Having businesses of your own is certainly valuable and could expedite one's journey in reaching Financial Freedom. Simply associating owning a business with Financial Freedom discounts the grit, structure, and prudence one must invoke when starting their business endeavors.

Start today by proving it to yourself in your own career. Even if you adore your organization, change your perspective to understand that it's still about "YOU INC". Financial Independence requires a long term commitment, simply put. It's cliché and boring, however, it continues to be a growing desire for many.

If you wish to put yourself first and love the company that you work for at the same time, please click below for a Discovery Session.

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