“Financial Independence is a mental, emotional and educational process” -Robert Kiyosaki
Is money overrated? Most of the times, we tend to think that money is overrated. But the reality is, we live in a world where almost everything is somehow connected to money. Come to think of it, they’re just paper notes that can literally determine if you have the ability to pay the rent or buy a private jet. Yuval Noah Harari was right when he stated, “money isn’t a material reality, it’s a psychological construct”, in his book Money, and that’s why it has more influence on our lives than we can ever imagine or realize. It has the power to affect us and those around us in inexplicable ways. So no, money is not at all overrated.
Talking about financial independence, most people don’t consider it one of the important aspects of life. They tend to think that having a secure job and the ability to buy anything they desire is all that financial independence is about. But they have no idea of how wrong they are. I believe financial independence is much more than that. It’s about understanding how money works, it’s about taking rational decisions regarding money and it’s about understanding the effect it has on you and the people related to you. As Robert Kiyosaki said, “financial independence is about having more choices”. But those choices aren’t confined to the materialistic world, they also belong to the emotional and mental world. Money has an important role to play when it comes to relationships and your mental health. Marriages end due to the differences in money-spending habits, people commit suicide when they go into debts – that’s how serious money is! Amidst all of these things, it’s important to not let money control you. That’s where financial independence is required!
In most countries, concepts like financial management and financial independence are overlooked. In schools, where everything from biology to mathematics is taught, topics related to money are seldom touched. This wouldn’t be the case if we considered it important enough. Every success is measured by the amount of money one possesses. Students are taught so many ways to be “successful in life” from the very beginning. But what is successful if not rich in this world today?! And ironically, no one talks about these issues. Financial independence isn’t something that we can learn only from experiences, so there is no “right age” to learn it. We don’t need to wait for our kids to turn twenty-five; they can learn the importance of it along with their first biology class. Parents need to be more open about money and need to teach their children the correct strategies of various things like money-saving, debts, and insurance. Schools must be held responsible for teaching the importance of financial independence because it’s extremely important! Financial independence has the power to grant us the freedom of decision-making. It gives us the freedom to live and work on our own terms. Living the life the way we want live is highly satisfying, and higher levels of satisfaction and happiness in life are associated with better overall mental, emotional and physical health.
To be a financially independent person, you need to be a financially educated one because both are highly interdependent on each other. You simply can’t learn one without learning the other. So here are some easy ways to be financially intelligent that can help you in your financial independence process:
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Read books related to money
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Read newspapers and magazines
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Visit a financial therapist
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Take a financial literacy class/course
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Use financial management tools
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Listen to money podcasts
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Improve your consumer mentality
All said and done, financial independence isn’t gained overnight. It’s a long process which requires patience, calculated actions, strength to take risks and an openness to make mistakes and learn from them. But it’s equally significant! The world has developed a lot since the invention of money: we’ve come from the barter system to the age of digital money. While we keep evolving, it’s important to enjoy the freedom that comes with financial independence. It’s never too late!