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“The Pursuit of Independence as Your Financial Goal”
As your financial advisor, I believe a truly great life boils down to a simple, two-part formula: Independence plus Purpose.
Purpose is personal—it might be family, community, your faith, or your work. But independence? Our desire for it is universal, transcending cultures and generations. Financial advice often focuses on optimization, but I believe one of the main goals of optimizing your finances is to maximize your personal independence.
The Power of Doing It Yourself
I saw this power firsthand recently with my son. This Fall, while at our local park, he wanted a hot dog, but I gave him one condition: he had to order, pay, and get the change by himself. I wouldn’t even be nearby.
He was scared. “What if I get in trouble?” he asked. “What if they say “No” because I’m a kid?” It’s hard as a parent to withhold assistance, but sometimes, the best help you can give is the confidence you force them to find on their own.
He walked away, terrified. Minutes later, he returned, absolutely beaming, holding his hot dog covered in Ketchup. If I had held his hand, the hot dog would have been a small, temporary joy. Because he did it on his own terms, the psychological reward was profound.
The takeaway is simple: When you are used to being mandated or dictated, and you suddenly experience the glory of independence, the feeling is sensational. Doing something on your own terms feels infinitely better than doing the exact same thing with someone peering over your shoulder.
And that is as true for adults building wealth as it is for a kid buying a hot dog.
Independence is More Than Just Money
Independence is the highest goal because it frees you from dependency—on income, on approval, on external expectations. As Christopher Morley said, “There is only one success: to be able to spend your life in your own way.”
Here are the key lessons on achieving true independence:
- Independence is How You Recognize Individuality
If everyone had the same goals and family dynamics, finance would be a hard science. But the difference in how you and I define success can be miles wide. A great decision for me (say, taking a career risk) might be a terrible decision for you (who prioritizes stability).
The most dangerous financial mistakes come from mimicking decisions that were right for someone else but wrong for your unique life. Smart people will say, “This worked for me, you should do it too.”
But if you lack a strong, independent view of the life you want to live—your values, your desires, what makes you happy—you are likely to chase someone else’s visually appealing dream (the bigger house, the faster car).
- Intellectual and Moral Independence is a Form of Wealth
Achieving financial freedom only to become dependent on a new tribal culture is a unique form of poverty. Financial freedom is replaced with a blind adherence to views you might secretly disagree with.
It creates a unique form of debt: you no longer have to work for money, but you are indebted to needing to think a certain way.
Ed Thorp, a renowned investor, once said, “It is vastly less stressful to be independent—and one is never independent when involved in a large structure with powerful clients.” It’s mentally exhausting to pretend to be someone you’re not. This is why so many people look forward to retirement: it may be the first time they can truly be themselves.
Don’t trade financial dependence for intellectual dependence.
- Independence Eliminates the Need to Impress Strangers
How much of modern spending is purely for signaling? The expensive car, the luxury watch—actions taken to impress other people are a direct form of dependence. You are measuring your value through the opinions of others.
The irony is that no one is thinking about you as much as you are. They are too busy thinking about themselves. When you see someone in a nice car, you rarely think, “Wow, that driver is cool.” You think, “If I drove that car, people would think I’m cool.”
When you are truly independent, you shed this silly burden. It is a massive financial and psychological relief to stop seeking the validation of strangers.
- Independence Means Strategically Deciding Whose Attention You Seek
Independence does not mean you don’t care what anyone thinks of you. It means you independently choose your small, vital circle: your spouse, your children, a handful of genuine friends, and a few admired professional peers.
You select the life you want to live and focus your energy on the small group of people whose love and support you truly desire. It’s the opposite of pandering for the support of the masses. How independent are you if your words and actions are dictated by the beliefs of people you’ve never met?
Loyalty to those who deserve it is a wonderful thing, but only when you’re independent can you be honest about whether you are being genuinely loyal or simply attached to the attention or money of people you secretly don’t admire.
- Financial Independence Doesn’t Mean Stopping Work
The goal of financial independence is wonderful, but achieving it doesn’t mean you stop working. It means that you choose the work you do, when you do it, for how long, and whom you do it with.
Many people who retire early fall into one of two traps: they hated their work but kept doing it for money, or they enjoyed their work but quit because the money told them they should. In both cases, money controls the decision. They aren’t independent; they are so dependent on the idea of money that they allow it to dictate their days.
True independence means money is a tool you use, not a master that uses you.
Conclusion: Become Accountable to Yourself
When you are independent, you become accountable to yourself—and that’s often when you do your best work. You’re no longer working to appease a boss or earn a minimum paycheck; you are driven solely by your own curiosity and expectations.
The core of my advice is this: We use financial strategy to purchase personal freedom. Your investment plan, your savings rate, and your insurance coverage are all simply tools to build a fortified wall around your ability to live life on your own terms.
Prioritize building a financial, intellectual, and moral foundation that allows you to be truly independent. It is the highest return you can earn.