Friday, March 09, 2012

Don't be obsessed over financial freedom

The title says it all. Do not be obsessed over financial freedom. Financial freedom is for the future, but in order to have a future, you need to have a present. What if one day, your present situation changes, would the financial freedom that you have in the future still be meaningful? For example, you planned nicely for a nice retirement at age 45 with a cash flow matching your expenses, but suddenly your life situation changes - your spouse left you, you lost control of your limbs etc - would the financial freedom that you crave for in the past still meaningful? I doubt so.

So, while it's good to plan ahead for the future, it's never too good to be obsessed over it. What do I mean by being obsessed? Like forecasting every bit of income that streams in to the cent, like controlling your expenses now so that you can save a few thousand dollars in order to put in the stock market for the 'long term' for retirement etc. Live a life. Ultimately, you only live once and your friends and your family are only beside you for a limited amount of time. Once they are gone, they are gone, with only wisps of memory left for you to regret not spending more time with them. Youth will be gone in a blink of an eye too. Once you pass a certain age, your body will start deteriorating. The perfect travel-around-the-world vacation that you always wanted after your retirement might not be so perfect when you have to climb mountains and walk around with a weakened heart and a painful knee.

Hedge your life now by spending excessively sparingly. Always spend on things that you value, not what other people value. You never know when you are going to exit hotel earth, so hedge your life by living it, not merely surviving it. If you think buying a handbag will contribute greatly to your life, go ahead and spend the few k on it. Again, spend excessively, but sparingly. If you always keep a portion of your income as savings, there's no guilt to spending future retirement money away.