You feel stuck in your 9-to-5 routine but love the paycheck. There are times when you contemplate doing something on your own. You don't want someone telling you you have to work 9 am to 5 pm every day and put in those hours. Financial freedom is never about the money. It is about time. You want to be the master of your own time.
The idea is to pursue the dream that also takes care of you and your family. Many founders who made fortunes started with that idea.
You can take a calibrated approach to the life you dream of.
Your 20s
You could be at the start of your career with a modest entry-level salary. You will soon realise that expenses mount at a faster clip than the money you make. If you have zero generational wealth, you have no option but to value your paycheck and wonder if freedom is possible at all. With age on your side, you need to adhere to a financial engine that automatically treats investments as fixed bills on your payday.
It may be hard at first. But once you start to live within the amount left after monthly saving and investing, you are learning the art of living within your means. Most of you will fail. You may need regular bailouts from your parents, if possible. If you show the right intent, they may support you. However, if self-respect is what you have, then you need to take a leaf out of American author and writer Ramit Sethi’s book ‘I Will Teach You to Be Rich ’. He recommends a ‘conscious spending plan’ through automation of investing. A simple, systematic investment plan in an exchange-traded fund, index fund, or mutual fund can quietly accumulate wealth in the background. You don't have to be too involved; use your spending power to build your career skills.
Your 30s
You probably have mid-career stability now. You have some specialisation at work and are probably earning well. The trouble with your 30s is that spending soars. Keeping up with a lifestyle that suits your peer group, plus heavy responsibilities around housing loans, eldercare, and other dependents, can suck up all your surplus. That assumes you have maintained automated savings and investing through your early career.
Drawing wisdom from Morgan Housel’s famous book ‘The Psychology of Money’, remember that doing well with money has a little to do with intelligence and a lot to do with behaviour. Accumulating wealth while working for someone else isn't about flashing status symbols. It is about buying the one true luxury freedom affords. That is your control over your time. As a result, when your dream opportunity knocks, you have the financial runway to answer.
Your 40s
You are probably at the peak of your earning ability. The surplus you have in your 40s will push you to seek personal fulfilment. This is the time to leave the corporate nest and get into the vocation that matters to you the most. Consult independently, launch a boutique firm, or dedicate the time ahead towards creative stuff. In the book, ‘The Almanack of Naval Ravikant’ compiled by Eric Jorgenson, he argues that happiness is a choice. To get rich, you cannot just rent your time. You will have to use the safety net for sovereignty. Your work must be closely connected to your soul.
Money can buy the absolute freedom to choose how you spend your days. By respecting the structure of a regular job while quietly engineering your escape. You are nurturing habits and building courage so that you can turn your ultimate dream from a distant wish into a scheduled reality.