Financial Independence is a Side Effect

Financial independence is a side effect of a life well lived. Or it should be. That’s not to say that I got it right, nor have I found the perfect balance. What it implies, however, is that we have confused our goal with our goal post and have settled on success as the end game. While we can satiate our inner needs for decades with such thinking, eventually we end up with a lot of money but many wasted years. Now, as per my last post, I’m not bagging on sacrifice. As one commenter astutely pointed out, sacrifice if embraced can become part of fulfillment itself. Yet if we set our laser vision on financial freedom alone, I think we lose out on an important part of the journey.

As I have shared before, I came upon the realization of financial independence by accident. That is not to say, however, that my decisions were not biased by financial motivations.

In my estimation, I got it right about fifty percent of the time.

Might my path have been better if I knew what I know now?

Career

Financial independence is a side effect of my career as a physician. Upon embarking on this long journey, I had no consideration whatsoever of the economics. The idea of retirement was the furthest from my mind. The practice of medicine was my passion. By pursuing this passion, my W2 wages naturally led me to financial freedom.

I got this right.

However, as my career progressed, I found myself making more and more decisions based on money. While I gladly wrote about how I progressed in salary to 5X my base pay, I am starting to wonder if I am being to self-congratulatory.

This is no more glaringly true than my choice to cover nursing homes without a backup physician. Early on, I found that my partners often couldn’t handle the sick nursing home patients. What ingratiated me most to the facility was my availability around the clock. This led to many more patients, directorships, and related side hustles. This also propelled my salary forward.

But, I gave up freedom. The number of late night and off-hour phone calls were astounding. I often felt unable to leave town for more than a week at a time.

I might have reached financial independence quicker, but probably enjoyed the path much less. Sacrifice is great when it’s about passion. It’s rather unforgiving when you try to take the world on your shoulders and carry it forward.

Financial independence moved from being a side effect to a direct goal of my actions.

Was it worth it?

Investing

Unlike my career, I made many mistakes in this important aspect of my journey. I looked at investing as solely a way to accumulate wealth and reach financial independence. Blinded by the complexities of the market and busy building a burgeoning career, I relied heavily on a financial advisor to make decisions for me. By loosening the reins and abrogating the responsibility of my own finances, I hurt myself in the long run.

What I didn’t realize, at the time, was that financial independence is a side effect of taking responsibility for my own financial life. As a responsible and intelligent adult, I should have been much more engaged in planning and plotting. Not so that I could reach some pie in the sky number, but more importantly to create an economic framework. The means for which my family could strive and have the freedom to search for meaning and passion. To create safety and security for those that I love.

The goal should have never been a number, it should have been about being responsible and taking care of my family.

Spending

I have never been one to spend much on material things. With a few notable exceptions, I rarely buy items for myself. Frequently, I have made the mistake of thinking that financial freedom comes from frugality. I now believe that financial independence is a side effect of valuism.

While very aware of both the hedonic treadmill and the stoic treadmill, I think we should spend money on those things we value. For some, that may be objects. For others, it may be experiences. Money is meant to buy things. It’s ok to spend even at the cost of prolonging the road to financial independence.

For many, valuism eventually leads to a reduction in overall spending anyway.

Final Thoughts

I’ve spent a lot of time thinking about financial independence in the last 10 years. Thankfully, it was not a prime motivator in my early career.

Why thankfully?

Because financial independence should be a side effect.

It should be a side effect of picking a passionate career.

It should be a side effect of taking financial responsibility and implementing an economic plan for you and your loved ones.

And it should be a side effect of using your money solely in search of value.