5 Misconceptions About Financial Independence

I’ve done the mistake of talking about my early retirement plans and pursuits with people who were not ready to hear them.

How does that happen, you might ask.

Usually, a person expresses a seemingly sincere interest into what I do in my spare time, but once I start opening up about financial independence, without even challenging their views, they put a guard up and start dismissing the ideas using counter-arguments in a conversation that’s not even supposed to be a debate. That’s the point where I back-off, but I’ve been usually stuck with a bad feeling.

And most probably, as a FIRE enthusiast, you’ve been there too. At least I’ve heard similar stories from multiple FIRE bloggers. But let’s face it, financial independence is a field that is hard to grasp at the beginning. Especially for those who haven’t thought about what being financially free actually means.

By many people, financial freedom is easily confused with having a high salary, consumerism, or possessions – none of which directly correlate with being rich. You get the point… I’m talking about people with low to no financial literacy who, more often than not, obey the doctrine that time is money.

Anyway, this post will cover some of the misconceptions these people have about financial independence and some common arguments I heard against it.

Enjoy.

1. I like my job

No doubt. I see your point and I believe you. However, I can easily spot some pitfalls here. Let me illustrate.

First of all, I understand that you may have a sincere interest in your field of work. But try to make sure that you’re not confusing it with your job that you’re claiming you like.

Does it make sense?

No?

Okay, let me try to make the distinction between your interest and your job a bit clearer. See how many of the following statements are applicable to you:

• On the first day of every vacation I’m eagerly looking forward to returning to work.
• I enjoy every second of my daily commute.
• There was not a single instance where I remember preferring being somewhere else rather than at the office.
• Having a meeting feels a lot better than having a breakfast with my family.
• I would put my vocation as a middle name.

Did you get all 5? Then you really love your job and you should stay away from FIRE. Make sure not to get fired though, because you’ll need the exact mindset you’re trying to abandon in order to handle it.

Lastly, if it’s only about nurturing some passion you may have, nothing is stopping you from exercising it without being paid for it. Believe me, things are way more pleasant when you’re not doing them solely for the sake of a paycheck. But I doubt that you would use your spare time to follow vague requirements, obey abstract regulations, fix mistakes in spreadsheets, or lock yourself into a room when you’re feeling like taking an afternoon off… But you can’t because it’s Thursday.

So what’s my point? It’s simple, I can comprehend having interest in your work, but that’s far from liking your job. You see, when it’s about your work, the relationship is more intimate – it’s between you and the field you have interest in. But when it comes to your job, there are way more parameters to consider: there is the human factor, the distance to the office, the flexibility of the working hours, the amount of time you can’t spend with your loved ones, the opportunity cost of being unable to pursue things you really believe in, etc.

But no doubt that it’s tolerable. Just don’t confuse “I like” with “I can tolerate“. That just strengthens the chains on your feet.

Bottom line: I’m not saying that there is not a single individual on this planet who likes his job. But I am saying that liking a job is not mutually exclusive with not depending on it. You can always continue working with the same pace even though you don’t need to.

But I doubt that you would. And you know it too.

2. I don’t want to sit around all day

First and foremost I have to express my sincere feelings about this. It’s both sad and heart breaking witnessing how small and overworked souls have lost every sense of self. And I’ve heard this misconception way more often than I’d expect.

I hope that you’ll find a point in life greater than your job, otherwise you’re headed towards a retirement full of regret in which you’ll keep asking yourself if it was worth it. Especially as an old retiree, when the social status that once came with your title will fade away and there won’t be a job that gives you that sense of purpose.

Please, in all honesty and with the best intentions, don’t confuse your job with your life. Not having a job doesn’t mean sitting around all day. Revolutionary ideas don’t come from putting in a 9-to-5, but from a real passion and burning desire to research, create, develop, or accomplish something.

But you already know this! Did meeting your significant other felt like “sitting”? Did raising your children felt like “sitting”? You see? The alternative to working is not exclusively “sitting”.

Bottom line: it’s completely fine to build another man’s dream if you don’t have one. But don’t forget that it’s just a mean to an end. Don’t forget about yourself! As in the previous point, you can always continue working after reaching FI if that’s what not sitting means to you.

But I doubt it does… And you know it too.

3. I want to contribute to the society

Great initiative! Go for it.

That’s it?

You want to be useful for the society and that’s your counter-argument against financial independence? Okay, I’ll just accept it. But I wonder what your job might be if you think that you’re irreplaceable or if you think that you’re making some great contributions during your working hours.

Ah, I see, you pay tax! Let me list a few ways that you can contribute to the greater good without having to exchange your single life for money:

• Volunteer or start a non-profit and help the less fortunate;
• Think;
• Donate to charities of your choice;
• Teach;
• Make people feel good and scale it as much as you can;
• Start a business and employ people;
• Raise good children;
• Vacate your job and let someone who needs the paycheck more take it;
• Think of a way to solve what your fellow citizens worry about and propose it to the government;
• Start a political party and implement the contributions you have in mind using the taxpayers’ money.

And I was just getting started. If I had a full post I could list at least 50 ways in which you can be useful to the society. And if you’re not lying when you say that that’s the purpose of your job, I’d highly encourage you to at least consider the other options as well. The fulfillment you’d receive when you sincerely help someone is incomparable to paying tax (which I doubt you really enjoy, but anyway).

Until then, the only think you’re useful for is your boss.

By the way, all of us have a particular place in the society and I don’t want to take anything away from anyone. However, I want to point out that contributing to the society can be done while financially free as well, so it’s not an argument against financial independence.

Bottom line: we’re all replaceable in the workforce. The wheel will continue turning regardless of whether some small cog gets rusty and needs replacing. That being said, you can always continue to “contribute” after you’re not forced to. You can also voluntarily send more money to the tax authorities today, actually.

But I doubt you will. And you know it too.

4. I like being told what to do

Me too, especially while I’m at work. Every time I have more responsibility without the adequate increase in compensation, I feel like not doing it.

You see? I understand you. We’re both lazy and dead inside. Great job!

Now let me challenge your views. Let’s say you’re planning a month of vacation. Who would you prefer to pick the destination and the people that will come with you – yourself or your current boss?

Exactly. And that’s my point – similar to the other misconceptions, this one boils down to seeing your life only in the context of your job. And that’s not a healthy perspective.

Yes, you want to be told what to do and let other more capable people take care of the decision making and handle the responsibilities, but that’s your job! The life continues after 5PM and that’s the part where you don’t want a superior telling you what to do, how to raise your kids, or when you’re allowed to talk to your wife.

There is more to life than your office. You know it as well, but got side tracked after decades of service.

Bottom line: you can always enjoy the privilege of being a marionette after reaching FI. You can continue being mistreated, put in the least advantaged positions, and cleaning up after the deity that your current owner calls client.

BUT! I doubt you would. And you know it too.

5. It’s impossible

Yes, many people claimed that not having to work for money is impossible.

I’m quick on my feet to give an example of a person they know who married into money. They’ll say “but she married a rich guy“.

Okay, fair. I’ll jab with an example about someone who wasn’t born into money but enjoys government benefits and gets by. They’ll say that he’s just a slacker.

Lastly, the right straight is an example of a person who actually has a passive income stream. They’ll say that he put in years of effort and made a lot of money first.

And that’s where it becomes obvious: these people don’t actually think that it’s impossible. They’re just trying to disapprove of everyone’s good luck, smart investments, or proper planning just so they can feel better about themselves.

Here is the point where I left them be…

And they know it too.

Conclusion

So, the question remains, what should you do in situations like these?

Here’s the simple answer: nothing.

Don’t talk about plans for the future, but if you’ve already planted the seed, forgive yourself and don’t try to persuade anyone to see your point. The counter-arguments worthy of taking into consideration will be easily distinguishable from the noise created from the naysayers. I guarantee.

Also, try to understand that people need something to feel good about themselves. You can also contribute to society by not pointing out that they’re victims of biases such as the self-serving bias, choice-supportive bias, and confirmation bias just to approve their position and, for some reason, convince you too. Remain silent so they can feel good about themselves and you can feel good about not debating (which has a great contributions to one’s will being).

Unlike most people, I’m strong enough to admit when I’m not impressed by my current situation. And that’s the biggest step towards improving the position we’re in.

So I’d highly encourage everyone to think again if they like their job or just their profession.

If they don’t want to sit all day or they brought themselves down to the point where there’s not much to do apart from sitting.

If they really want to contribute to society or paying tax is the pinnacle of their existence.

If they like to be told what to do or they’re just lazy.

And lastly, if something is really impossible, or they’re just afraid.

FIRE is not an easy path… It’s fine to be afraid.

But comfort is what hinders progress.

And fear is best managed by taking the first step towards improvement.