What is Financial Freedom according to me?

When people talk about financial freedom, they often conjure images of vast wealth, endless vacations, and a life free from the daily grind. However, my journey to what I consider financial freedom paints a different picture.

It’s not about amassing endless wealth but about crafting a life where I am in control, where my time isn’t dictated by financial necessity but by my own desires and passions.

A taste of freedom can make you unemployable!

• Naval Ravikant

Here, I’ll share how I’ve reshaped my life to reflect this freedom, especially in the context of India’s diverse economic landscape.

Defining Financial Freedom

Financial freedom, to me, isn’t about having an enormous bank balance but rather reaching a state where I can choose what I do with my time without the compulsion to earn. Here are some of my views:

• Freedom to Choose: It means not doing things out of obligation or necessity. If I want to spend a day reading or playing shuttlecock with my kids, I can do so without worrying about lost income.

• Work as Play: Naval Ravikant, a well-known investor, once said, “Do things that seem hard to others but play to you.” This resonates with me deeply. Work doesn’t stop, but it transforms into activities that are fun, challenging, and fulfilling.

• Earning by Brains, Not Time: Traditional employment often means trading time for money. However, true financial freedom comes from leveraging intellect, creativity, or investments to generate income. Here’s how I’ve approached this:

  • Investing in Knowledge: I’ve invested in myself through courses, books, and workshops, particularly in areas like stock market investments, which has allowed me to grow my wealth without being tied to a desk job.

  • Passive Income: I’ve set up multiple streams of passive income through dividend stocks, rental properties in smaller towns where the cost of living is lower, and a small online venture selling digital products.

• No Timetable: One of the most liberating aspects of financial freedom is the lack of a rigid schedule. I can decide on the spur of the moment whether to work, engage in hobbies, or simply relax.

My Path to Financial Freedom

Early Days

Growing up in a middle-class family in Mumbai, financial constraints were a constant companion. My parents worked hard, and while we were never in dire straits, there was always an undercurrent of financial stress. This shaped my early views on money:

• Education: I pursued engineering, not out of passion but because it was seen as a stable career choice with good financial prospects.

• First Job: After graduation, I landed a job in a tech firm in Bangalore. The pay was good, but the hours were long, and the stress was high.

The Realization

The turning point came when I realized that:

• Time is Finite: Unlike money, time cannot be earned back. This realization pushed me towards seeking a life where I could control how I spent my time.

• City Life Costs: Living in a Tier 1 city like Bangalore was expensive. The lifestyle inflation was real, and it kept me on the treadmill of earning more to spend more.

Steps Towards Freedom

1. Moving to a Tier 2 City:

   • Lower Costs: I moved to a smaller city like Bhopal, where the cost of living was significantly lower. This allowed me to save more and invest.
   • Quality of Life: The pace was slower, pollution was less, and there was more time for family and hobbies.

2. Investment Strategy:

   • Diversification: I diversified my investments across real estate, equity, and fixed income instruments.
   • Stock Market: I learned to invest in the Indian stock market, focusing on fundamentally strong companies that offer good dividends.

3. Creating Passive Income:

   • Rental Properties: Bought a couple of flats in smaller towns, which now provide steady rental income.
   • Digital Products: I started selling digital products related to my expertise, which requires minimal upkeep but provides continuous income.

4. Lifestyle Changes:

   • Minimalism: Adopted a minimalist lifestyle, reducing unnecessary expenses. This wasn’t just about saving money but also about decluttering life.
   • Frugal but Fulfilling: I learned to find joy in simple pleasures - a walk in the park, cooking at home, or a DIY project.

Living the Dream

Today:

• Daily Life: I wake up without an alarm clock. I might spend the morning reading financial news, which I now enjoy, or take my kids to the park.

• Work: When I do work, it’s on projects that excite me or on managing my investments. It’s not about the money anymore but about the engagement.

• Future Plans: I’m considering moving to an even smaller town, where life is slower, and the cost of living even lower, allowing me to stretch my financial freedom further.

Financial freedom, as I’ve experienced it, is less about the money and more about the autonomy over one’s life. It’s about making choices that align with your values and passions rather than external pressures. Here in India, where tradition often dictates lifestyle choices, my journey has been somewhat unconventional, but it has taught me that:

• Freedom is Personal: What financial freedom looks like can differ greatly from one person to another.

• It’s a Process: Achieving financial freedom doesn’t happen overnight. It requires patience, learning, and adapting.

• Cultural Adaptation: While Indian culture values family and community, my approach has been to integrate these values in a way that supports my freedom rather than restricts it.

This journey has been enlightening, challenging, and deeply rewarding. It’s not just about having enough money; it’s about having the right mindset, the courage to break from traditional paths, and the wisdom to choose what truly enriches your life.