Want Independence? When Do You Know You Are There?
The Declaration of Independence kicked off our nation! We broke away from British Rule, declaring our own Self-determination. Getting it done required winning a bloody war.
90 years later, southern states, citing many similar issues, tried to secede from the union. President Lincoln told the “rebellious states” they would have to fight their way to independence. The rebellion was crushed; the union prevailed.
Today, many “rebellious” states are screaming they are independent, fighting against the federal government’s attempt to address major crime problems. Let’s hope we don’t end up in another war….
What is independence anyway?
Cambridge dictionary definition:
- “Freedom to make laws or decisions without being governed or controlled by another country, organization, etc.”
- “The ability to live your life without being helped or influenced by other people.”
Independence means different things:
- Children fight to be free and do things for themselves.
- Teens eagerly await their driver’s license; driving gives them newfound freedom.
- Slaves yearned to be free and independent.
- Workers dream about being free from a terrible work environment.
- Retirees dream about the day they can walk away and enjoy their golden years.
- Nations yearn to be free from oppressive governments.
I love Richard Maybury’s idea: “free to do as you damn-well please, as long as you are not harming others.”
Let’s focus on individual freedom, the ability to enjoy life on your terms.
A simplistic view
During most of my working years, independence was viewed in simplistic financial terms.
A sales conference I will never forget – it was the end of the day gathered around a table with beers in a bucket and snacks galore. Listening to the normal employer bitching, one guy piped up and said, “I want to get to the point where I have plenty of FU money. I’d just like to be able to tell the boss to F-off and walk away from the constant BS.”
Singer Johnny Paycheck encapsulated the idea with his song, “Take this job and shove it, I ain’t working here no more!”
For many, it’s a fun fantasy dream. We all knew, if we were lucky, it would take decades to have a realistic shot at it. The only EASY button would be to win the lottery.
Another attendee told an unforgettable story:
“He was at a sales meeting when a newbie was boozing and bitching pretty heavily. No one really knew him because he was from a different region. He got up to go to the restroom, leaving several things on the table, including a lottery ticket.
A prankster wrote his numbers down and walked away. When the newbie returned, the prankster walked up and said, ‘They just had the lottery drawing, if anyone is interested, here’s the winning numbers,’ dropping the paper on the table. Newbie picked it up, compared it to his lottery ticket, and was visibly moved.
Before anyone could say anything, he gathered his belongings, walked over to the table where his boss was sitting, and began screaming and cursing; ending with ‘FU – I quit!’ He walked out – never to be seen again.
We were all in on it, thinking it was hilarious, until it happened. While secretly wishing we could have let the boss have it, we felt terrible.”
We all laughed at his story; however, we can only imagine how terrible newbie felt when he realized he was pranked and wasn’t filthy rich. What a valuable lesson! You better be doggone sure you have more than enough FU money before you burn your bridges.
The Fight!
While nations may fight for independence, the battle doesn’t stop there. A free society offers the “opportunity” to achieve financial independence, but does not guarantee it. For individuals, it requires decades of hard work and wise choices to finally be able to retire and do as you damn-well please.
Here’s some lessons from my journey:
Generational independence. As a teen, I longed for independence, not having to beg to use the family car, tired of parental rules. No longer relying on financial support was a giant step toward independence.
Raised by parents of the Great Depression, upon my high school graduation, I was expected to leave home; either college or the military. Parents helping with college wasn’t a consideration. I chose the military. I was on my own….
Soon, I found a mate and had three children. When they were teens, helping them with college was important. The common mantra among our peers was a different definition of freedom: “The kids leave home and are on their own financially.”
It hit me! When I was fighting for independence, my parents also wanted me off their payroll, wanting to move on to their next phase of their lives.
| Independence is more than just not being controlled by others. It’s freedom from obligations prohibiting you from doing what you damn well please. |
I called the journey from becoming an empty-nester to retirement, “The race to the finish line!” Major financial choices had to be made correctly if you wanted real FU money, do as you please….
Not everyone feels the need to escape a bad work environment, but they still want enough money and time to captain their own ship for the duration.
Live BELOW your means. I wish I’d fully understood this earlier. If you spend more than you make, living your life worrying about monthly payments, you are doomed to economic slavery.
I was in my 40s when 401k programs emerged. The idea of setting aside some savings at the time, when I was still in debt didn’t work well.
The old mantra, “Pay yourself first, and learn to live on the rest,” is the best advice I ever received. Young people today have these programs when they begin their working career. Max out those payments as best you can, and adjust your lifestyle accordingly.
The internet is full of examples outlining the huge impact of compound interest over time. MoneyUSNews explains the results of starting early:
“Jack starts investing $200 per month when he’s 25. By age 65, his portfolio is worth more than $520,000.
Jill doesn’t start investing until age 35. She also contributes $200 per month, but by 65, her portfolio is only worth about $245,000. By waiting 10 years to start, she ends up with less than half of what Jack accumulates.
Joey, the late bloomer, starts investing $200 per month when he’s 45, and after 20 years he has only $100,000.”
“When You Start Investing Matters More Than How Much You Invest
If Jack were to contribute $200 per month from age 25 to 35 – contributing only $24,000 over 10 years – his investments would be worth almost $300,000 at age 65.
Jill continually invests $200 per month between ages 35 and 65 but still ends up with only $245,000 at 65. Even though she contributes three times as much as Jack over her lifetime ($72,000), because she missed those first 10 years of investing, Jack amasses more.”
In retrospect, investing in my 20s, paying myself first and living on the rest would not have impacted my lifestyle. You can’t spend and save the same money. Start young and let saving become a habit. I can relate to Joey; stressed, feeling like I was racing to beat the clock to catch up.
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Don’t totally rely on the government. Whether it’s social security or government pension, beware. They are political promises and can be easily changed. Those heavily relying on “Big Brother” for their financial well-being are never truly independent. Politicos use tax dollars to help control the population.
Understand income sources. How do you safely earn the income necessary for a comfortable lifestyle – without constantly having to worry about money?
We had a friend who worked hard and accumulated $1 million trading stocks during the 1990s boom. Once they hit the magic million, they both quit their jobs.
Within five years, both were back to work. Why? He explained, it was easy to trade when he had a good job; if he took a loss, they were still OK. Once he began trading with money they couldn’t afford to lose, his strategy changed. He began to worry; plenty of sleepless nights.
He cautioned, “running the numbers” and projecting earnings is a math exercise. Making it happen – without constant worry is hard.
His new mission was to build a nest egg providing enough interest and dividends to support their lifestyle – asset appreciation was a bonus.
Get there – stay there! Build a good retirement cushion. Whether it is the Fed dropping interest rates or rampant inflation, income sources and cost of living can be affected by things beyond our control. Just because you hit your target, does not mean you have to quit!
When do you arrive?
In retrospect, Jo and I never really experienced a magic moment. The independence was more peace of mind than anything. After living a comfortable lifestyle for a few years, our confidence in our strategy grew. Cancer arrived; we dealt with it. While we have many concerns, fortunately, money is nowhere near the top of the list. Barring a catastrophe, out of our control, we feel comfortable for the duration.
It’s a state of mind. If you make good choices along the way, you don’t need to win the lottery to be able to do as you damn-well please.
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On The Lighter Side…
Last week’s article prompted several kind remarks from readers. Thank you all for dropping in.
Well, we made it, we are in The Villages working with a realtor. This is a big place and lots going on. We are hoping to put something together in the next week or so.
At the suggestion of several friends, we drove a different route, avoiding Chattanooga and Atlanta. A tad longer but much easier. Jo did note that the drive is almost exactly 1,000 miles less than the drive was from Arizona.
Quote of the Week…
“You cannot build character and courage by taking away men’s initiative and independence. You cannot help men permanently by doing for them, what they could and should do for themselves.” — Abraham Lincoln
And Finally…
Dear friend Sarah W. shares some quotes on aging for our enjoyment:
- “If you want to know how old a woman is, ask her sister-in-law.” (Eva Gabor)
- “Old age comes at a bad time.” (Ed Sullivan)
- “Inside every Older person is a younger person wondering what happened.” (Stevie Wonder)
- “Old age is like a plane flying through a storm. Once you are aboard, there is nothing you can do about it.” (Golda Meir)
- “The older I get, the more clearly I remember things that never happened. (Mark Twain)
- “Nice to be here? At my age, it’s nice to be anywhere.” (George Burns)
- “You spend 90 percent of your adult life hoping for a long rest and the last 10 percent trying to convince the Lord that you’re actually not THAT tired.” (Princess Grace)
- “Old people shouldn’t eat Health foods. They need all the preservatives they can get.” (Bob Hope)
- “At my age, flowers scare me.” (George Burns)
- “It’s paradoxical that the idea of living a long life appeals to everyone, but the idea of getting old doesn’t appeal to anyone.” (Andy Rooney)
- “The older I get, the better I used to be.” (Lee Trevino)
- “I was thinking about how people seem to read the Bible a lot more as they get older, and then it dawned on me — they’re cramming for their final exam.” (George Carlin)
And my favorite:
- “It’s like you trade the virility of the body for the agility of the spirit.” (Ed Sullivan)
Until next time…
Dennis Miller
“Economic independence is the foundation of the only sort of freedom worth a damn.” – H. L. Mencken
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