This is what financial freedom means

[Portia]

Hello MMM Community,

I have been reading the MMM articles for many months now, although this is my first time posting on the forum. I am posting this because I feel that I’ve experienced something very profound that I wanted to share with you. A manager at my company just passed away this weekend from cancer. He was 66 years old. I remember him as a very nice man, and although I feel sad for his death (my eyes are welling up as I type this) I feel sadder for the things that (to me at least) it seems he missed out on. I see someone who had many opportunities that he could have taken, but didn’t.

Last year, before he got sick, he had booked a trip to South Africa; however, due to a miscommunication with the new Head of our Department, someone else was given time off and his vacation request was denied (although his vacation time had been approved by the old Department Head before they left). Rather than rock the boat with the new Head and risk jeopardizing his job, he cancelled the trip and, by doing so, incurred a $1,200 penalty fee from the airline. A few months later he was diagnosed with cancer. What is sadder than the loss of money is 1) the fact that he felt so fearful and tied to the job that he would cancel the trip of a lifetime and 2) he will never get to take that trip now.

But what I am also grappling with is WHY this man felt such a slave to the job. The managers at his level are very well paid – an average of $150,000 per year. And this gentlemen had been a manager with the company for 25 years. I think of how, at that level of pay, he could have easily earned his freedom long ago, even if he didn’t start out making 150K, 25 years ago. Maybe he didn’t realize that was even an option. Maybe he was caught up in our consumerist culture. He could have told the Dept Head to stuff it when she ordered him to cancel his trip (which the company did not compensate him for). Many people are still stuck working to 65 or later. But you never know what life holds. Even if he had retired happily at 65, he would still be dead today, with only one year of doing what he wanted to in life.

Now, all the stuff I’ve been reading on the MMM site started to CLICK, and I began to see exactly WHY financial freedom is so important to achieve. Because you never know when the next trip you book, or the next ball game or concert or whatever you attend, will be your last. Because there are bosses out there who just don’t give a damn. I am realizing now that financial freedom is not actually about the money – it’s about YOUR life, and being free to live it how you choose, without fear of consequences, or a pink slip. That, in itself, is precious and priceless.

[frugalman]

I'm 64 years old, and going to retire on November 20. I was a profligate spender for decades, trips to Vegas, home equity loans etc. 5 years ago, I could feel that I would not want to work forever, so, with total debt of about $250,000 and little savings, I embarked to turn it around. I found MMM about 3 years ago, and YNAB about 2 years ago. I now have a paid for home, and no other debt. And over $300k investments, accumulating fast, and a $50,000 travel fund besides. So 5 years of hard work has paid off. Dear wife and I plan to use that travel fund as soon as possible. I'm in good health, but you never know.

Thanks for posting this, Portia, it's a lesson to all of us that we don't want to have to be a slave to The Man forever..

[Luck12]

Yep, freedom to do what you want when you want to and not live with fear of what the corporate overlords will think and do.  Eff U money! 

[GizmoTX]

In 1973, several important things happened to DH & me. We'd been married 4 years, both with good jobs, & had grown up with frugal families. We finally decided to take our first big vacation trip & chose Hawaii, 5 days in the Honolulu area & several days each in Kauai, Oahu, & the Big Island. This was a big deal for me, as my family never went on a vacation & our honeymoon was very low key by choice. On each island, we were part of a half day bus tour to see the highlights. This was an epiphany: 80% were seniors doing their trip of a lifetime, & a significant number of them could barely move or hear what was being said. They couldn't fully experience their dream trip. We realized then & there that we didn't want to risk missing travel experiences by putting it off to a future that might never come. We started out requesting vacation time between holidays & weekends to maximize it, & made sure we scheduled budget friendly trips on a regular basis. As our income & savings grew, we kept our travel percentage the same but expanded the scope. We've been all over the world, have tons of precious & fun memories, & plan to keep it up as long as our health allows. We're already seeing too many friends & family die.

About this time we also read Harry Browne's book, How I Found Freedom in an Unfree World. http://eiiiforum.com/picsfromusers/howifoundfreedom.pdf

This completely changed how we'd been looking at some things & strongly reinforced beliefs we already held but were afraid were too weird. It didn't occur to us to try to retire early as we both loved our careers, but being financially independent was a prime motivator. Initially we did not want children, which helped getting to be FI but wasn't the primary reason, but changed our minds in our late 30s. I retired from employment at age 45 to become a SAHM, an experience I am glad I did not miss.

Bottom line: We realized at a young age that money = freedom, & set out not only to get that but to use it. We have always planned for the future while focusing on living the way we want to today.

[Capsu78]

This story reinforces why my wife and I travel- last year marks the 10th anniversary of our first real international trips.  I can particularly relate as it was in 2012 that we went to South Africa, so I have first hand knowledge of what excellent experiences the nice man missed.
We are in our 50's and have replaced all the "spring breaks/ vegas weekends/ Lake house weekends/ ski trips" with 1-3 internationals every year we can.  I am convinced these are the trips I want to enjoy while I am physically active and healthy. 
We are planning another trip to Italy this year and have invited 3 other couples we enjoy being around and know we can travel with and have expressed great interest in "doing the wonderful trips I plan".  I emailed them a pro forma spreadsheet with links to where we would stay, how much airfare is etc.  2 of the three came back with hazy reasons why they "can't make a commitment that far out".  I have been very clear that I don't need an explanation if they don't want to come, but I suspect in 2 of the couples, it is one spouse who is pushing back.  They all say they will join us in the future...  Well, as the OP's story points out, life ends in death nearly 100% of the time, a statistic that probably won't change in ...forever.  I also have observed a lot of healthy seniors enjoying international travel which is great- may my wife and I be so lucky!   The travelers we don't see are the ones too unhealthy to travel. 
And a pox on the manager in the OP's story who couldn't find a way to work out multiple vacation requests... may you sit in useless meetings and conference calls until the day you drop over!

[OutBy40]

That story reinforces why people need to do what is in THEIR best interest, not necessarily their company's.  Of course I don't know the specifics of this man's employment with the company, nor how his senior level management felt about him, but apparently he worked there for 25 years - dedicated nearly a quarter of his expect life to that organization, and still got his vacation denied.  The company did what was in their best interest, and he gave in.  If you don't look out for yourself, nobody else will either.

To me, this would seriously make me question that company and how much they truly value their staff - as well, of course, as the more obvious reflections of how tied you are to the company that you work for, and how much that job actually matters. 

But you're right, financial independence enables personal independence.  Financial freedom enables personal freedom.  It's all one in the same.  Money is nothing more than a means to an end.  Whether I have $10m or $1m saved by the time I retire, I don't really care.  What I care about is being happy once I do, and completely comfortable with the decision I made to prioritize my happiness above everything else. 

There are many people out there who are happy - I mean genuinely thrilled - to live in their van.  Then, there are overworked people who lead miserable lives as they wake up in their $1m homes, drive their $80k BMW to a job they hate, and come home completely wasted away. 

Which one would you rather be?

[Retired To Win]

... Now, all the stuff I’ve been reading on the MMM site started to CLICK, and I began to see exactly WHY financial freedom is so important to achieve. Because you never know when the next trip you book, or the next ball game or concert or whatever you attend, will be your last. Because there are bosses out there who just don’t give a damn. I am realizing now that financial freedom is not actually about the money – it’s about YOUR life, and being free to live it how you choose, without fear of consequences, or a pink slip. That, in itself, is precious and priceless.

Excellent post, Portia.

That's the crucial mistake so many people make: assuming that a day given up to job obligations on this side of financial freedom will magically be added back on to their remaining lives once they've become financially free.  It just ain't so.

You may have heard of the very common malady referred to as "One More Year" Syndrome: the drive to work one more year just to pad the stash a little bit more.  The problem is that it is not really One MORE Year.  It is One LESS Year of living job-free.

In my opinion, it is a very bad bargain.  So don't anybody reading this fall for it.

[Skyhigh]

I greatly enjoyed your post Portia.

[EDSMedS]

And a pox on the manager in the OP's story who couldn't find a way to work out multiple vacation requests... may you sit in useless meetings and conference calls until the day you drop over!

+1
I sure hope that Manager got a nice bonus that quarter so he could upgrade the lease on his Saab, renovate his kitchen, pay for his pain-killers and his 3rd home in Maui, and upgrade to the Red Zone NFL package.  I hope that due to his keen prioritization the company stock rose that week so investors could see profit.

I wish I could believe that this story didn't happen to 80% of white-collar America.  What a tragedy.  Recognizing that this is closer to the norm than is "land of the free, home of the brave," isn't it time that we admit that slavery doesn't require chains?

This story, and the regularity with which it occurs, is a great example why it is not enough to be frugal, FIRE, and enjoy life.  We have a moral responsibility to wave the bullshit flag at all levels of oppression.

I'm truly sorry for the deceased but glad that you could see this horrible event as a call to action.

[steveo]

Because you never know when the next trip you book, or the next ball game or concert or whatever you attend, will be your last.

The only thing is to me being Mustachian is about minimizing these costs and even cutting them out. I think that spending like this is exactly the thing that I am trying to avoid.

Most managers and probably most people go to the ball games and to trips here, there and everywhere.

[mom2_3Hs]

My dad is 67.  He and my mom make waaaaaaay more in passive income than they live on.  And yet he continues to work.  Why?  It's his identity.  He can't quit because it's the same as him dying.  There isn't anything he would rather do with his time than multi-state tax returns for large agribusiness. 

[Joan-eh?]

You may have heard of the very common malady referred to as "One More Year" Syndrome: the drive to work one more year just to pad the stash a little bit more.  The problem is that it is not really One MORE Year.  It is One LESS Year of living job-free.

In my opinion, it is a very bad bargain.  So don't anybody reading this fall for it.

Thank you Retired to Win, i will make is my screen saver!!!

[Skyhigh]

I spent much of my 20's minimally employed but not by choice. My dream was to become an airline pilot. I worked seasonal and part time jobs for nearly a decade before securing a proper job as an airline pilot. It seemed like heaven to finally have health insurance, a steady paycheck, stability, and a regular apartment after years of living a minimal existence. It was depressing to have to struggle for so long while my peer group was getting married and buying houses. They envied my vagabond life but all I wanted was one good steady job.

Young people today are experiencing a similar situation in the job market and only dream of lamenting having to go to work. I was laid off from my flying career in 2003 with a wife two kids and one on the way at the time. I have not had a paycheck since and have not stopped trying to get another flying job either. Since then we have added three more kids. I have been able to achieve FIRE through the creation of real estate investments and a business but all I really wanted in life was one good aviation job.

It stinks to have to go to work but stinks worse to wish you could.

[Skyhigh]

“Staying the course” only makes sense if you’re headed in a sensible direction. Because passion and persistence – while most often associated with success – are also essential ingredients of futility". - Mike Rowe

[alleykat]

You may have heard of the very common malady referred to as "One More Year" Syndrome: the drive to work one more year just to pad the stash a little bit more.  The problem is that it is not really One MORE Year.  It is One LESS Year of living job-free.

In my opinion, it is a very bad bargain.  So don't anybody reading this fall for it.

Thank you Retired to Win, i will make is my screen saver!!!

Yes, the one more year syndrome.  I hear so many people say this and I scratch my head, especially those that have enough to call it a day.  Just recently a co-worker retired, I think she is 67, and I was thinking she was happy and she said, well, if I liked this job, I would of stayed one more year.  It is a head scratcher and something I hope I dont do once I get there. I do wish I started saving and thinking about FI 20 years ago.  I have majorly decluttered several times in the last 3 years and the money that went out the door is heartbreaking.  I was a bit compulsive.  But, at least, I am not starting from zero and will make this year a mustachian year, however, with balance.  No intentions on becoming extremely frugal.

[Kris]

My mother was diagnosed with terminal lung cancer three days after her 65th birthday and two months before she was scheduled to retire.  She died six weeks later.

This was the beginning of my awakening to FIRE.

Thanks for the post, OP.  it's always good to have these wakeup calls.

[greaper007]

Tragic that someone died so young.    I hope I don't have to work in my 60s.   As long as I continue a frugal lifestyle and the economy holds I don't think I'll have to.

That said.   My dad has a job with mandatory retirement at 65.   He'll be 64 next month.   Right now he told me he has over 8,000,000 in savings and he's a fairly low spender for his income bracket.    He makes something like $350,000 a year currently, so even with a low paying annuity he'd make more in interest than he currently does in income.

That said, I really don't think he wants to retire.   He doesn't have much of a social life and does few activities outside of work.   He's very good at his job and it's pretty much been the one thing throughout his life that he could excel at.   I'm worried about whats going to happen to him when he retires.   I fear it's going to be waking up late, working out for 2 hours and then hitting the sauce.    He's in good shape and could probably be safe flying a plane into his 70s.    It's too bad he can't keep working.

[OR]

Thanks for the post. 

I'm going to give my parents a pep talk today. 

On the personal side, I'm already scaling back my FI limits/goals.  I'll still be way ahead of an average joe on the savings end, but we have to secure some more enjoyment early on in life.  If the consequences of taking that time is that at some point, my wife or I have to ramp up our work, so be it. 

[LiveLean]

This reminds me of a 45-year-old friend. He makes $150K or so from the Federal Government. Usual benefits, tons of vacation. He has saved well, even lived TOO much of an MMM life, driving a 20-year-old beater of a car that's falling apart. I feel unsafe driving with him.

His wife has received not one but three large inheritances from deceased relatives.

He's often said he wishes he could be a high school math teacher and coach the track team. I asked him why he doesn't do it. "Oh, I couldn't give up my salary, and government retirement plan and benefits."

He doesn't even like his job. I get the feeling, like Portia's late colleague, that some people are so engrained in their routines, no matter how miserable, that they don't ever make a change. Even though, in the case of my friend, he's in position to do so. Very strange.

[Wadiman]

Portia -

Thanks for your post!

Your post and the PDF have been very useful to remind me about what makes me happy and taking some positive steps towards this Now!

[G-dog]

I had a co-worker that was likely FI but held on a bit longer to get a few more benefits (it may have been substantial, but I am not sure). Her breast cancer go had come back and she fphead further radiation treatments, but stayed at work. I think partially she was staying because her husband had lost his job a few to years earlier and never found anything solid. But they were both high income - they probably had enough, but she held on.
Within five years of retiring, she died from cancer that returned yet again. The last year was pretty bad.
Within a year of her dying, her husband that she worked so hard to help support had a new girlfriend. Knowing her, she would be okay with this, it is none of my business, but it bothers me.

Lesson: don't leave any job or employer you don't absolutely love feet first!  Take your freedom and run to the fun.

[Copperwood]

Last year, before he got sick, he had booked a trip to South Africa; however, due to a miscommunication with the new Head of our Department, someone else was given time off and his vacation request was denied (although his vacation time had been approved by the old Department Head before they left). Rather than rock the boat with the new Head and risk jeopardizing his job, he cancelled the trip and, by doing so, incurred a $1,200 penalty fee from the airline. A few months later he was diagnosed with cancer. What is sadder than the loss of money is 1) the fact that he felt so fearful and tied to the job that he would cancel the trip of a lifetime and 2) he will never get to take that trip now.

being in your 20s/30s, it sucks, but you have to comply. 66 years old?! that's where your FU money comes into play and you take the trip anyways and if they fire you, so be it. you're done working.