Have you ever wondered if you would be better off with a nice car instead of pursuing FI? (I’m only using a cars and homes as examples, btw.)
Maybe the status and social opportunities it would provide would be worth it. Maybe I’d be more happy on that journey than trying to buy time.
I mean, it would be easier. I would only need to sign up for a payment that would immediately make my cash flow worse for the duration of the payment. But then I’d have a nice car and the ability to travel anywhere in luxury. Everything comes down to tradeoffs. I see the value in both approaches, to be honest.
Although, if you really think about it, pursuing FI is a conscious choice to spend money too, unless you’re tryna keep a score.
FI-RE is actually about spending money. It’s Buying Time.
When I made the choice to give up my full-time position for a part-time position, I knew that I was choosing time over money. I have more time off now, but I am not being paid for those days off. Essentially, I’m paying for those days off because I gave up the opportunity to work those days off. Fortunately, my new job pays well enough for this to be possible financially. At least it’s working so far… But the extra days off are costly, because I could be earning more money to invest. On the other hand, I have the opportunity to earn income from different sources.
In the same way, early retirement through fi-re (financial independence – retire early) is about spending money in my opinion.
While some look at saving money as a sacrifice, those capable of seeing the bigger picture understand they are buying a future lifestyle. It’s not about giving up money, it’s about spending that money on time and the ability to live exactly how you want.
Financial Independence seekers are in fact spenders, but it’s just in a different way—they are hoarders of time. They realize that the present is all we really have.
Buying Time by Saving Money is Gratifying Now and Later.
The truth is that investing is boring, unless you find charts and stock analysis interesting. Otherwise it’s just a lot of waiting. After the money is gone, you don’t get anything in exchange for it right away like you do if you buy something.
I’m fortunate to see it the other way around, though. Saving money is instant gratification for me because I am a stock collector. I view my portfolio of stocks as a lifelong collection, similar to a coin collection or some type of sh*t like that.
Anyways, buying clothes, electronics, cars or what have you provides instant gratification, but it fades quickly. The nostalgia wears off as fast as the new car smell vanishes.
On the other hand, buying time and pursuing fi-re provides happiness now and in the long term. You get it now because you feel good about yourself for performing a disciplined action that leads to improvement, and since you have more money in the bank. And later, this money will compound over the years, which will contribute to fi-re.
Buying Time is Quantifiable. It is a display of unlimited options and unique lifestyle choices.
You know what, unless you’re travelling all the time, buying time does not appear to be as quantifiable as spending.
With spending, you can display your wealth through material objects like houses, cars, clothes and more.
On the other hand, money in the bank does not provide many options to quantify your wealth, right? Well, that’s just what (they) think… Because buying time through saving money changes everything. More than anything else, it changes your attitude towards work and life because it provides more options.
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Saving money is the ability to travel more. It’s the ability to take a year off work. It’s quitting a job you don’t like to search for a better one, because you already have alternative income streams. It is pursuing your passion, like blogging, to see if you can make it more profitable. Furthermore, it’s accepting a part-time job to have more days off now instead of waiting until 65. Fi-re seekers are in the business of buying time.
Buying Time For Fulfilling Work
Unless you’re constantly travelling, it would be very boring and unfulfilling to do nothing with financial independence.
Rarely have I come across FI bloggers in pursuit of doing absolutely nothing. At the very least they want to blog.
But this leads to another great feature of buying time: fulfilling work.
Comparatively, the bill payment lifestyle changes almost nothing. The ride into work may be slightly more enjoyable. But the stress of the payments combined with the lack of fulfilling work can lead to a cycle of hopeless emptiness. The cycle of dreading work but continuing to fund a lifestyle lacking financial flexibility.
FI-RE is NOT a Game of Sacrifice—It’s Buying Time – Concluding Thoughts
The next time someone asks me if I have a car, I’m going to tell them “I don’t, but the money is sitting in my bank account.”
Ok, not really. But the reason I’m saying this is because I realized the measuring stick of the majority is status, not happiness.
While at an event earlier this year, I noticed a different tone towards my answers compared to those who answered “yes” to owning a car or home. In general, people think you have money and that you’re doing well if you own an expensive car or big home…. But they think you’re not doing well financially if you save money because they don’t see the proof.
Mother f*cker…do you realize that I’ve spent time on the other side? I saw thousands of bank accounts while working in the financial industry. I saw your car loans, mortgages, credit lines, and credit card balances etc. I’m aware that your big home was furnished with debt, and I know the interest payment on your mortgage is higher than the amount going to principle. Do you even know that? Most of the people you think are doing well are in fact awful with their money. I wouldn’t wish their financial situations on my worst enemy…ok, maybe I would but still… lol. And I’m not suggesting that my financial situation is so perfect either. But at least I’m saving and not signing up for loans to impress people I don’t even give a care about.
Anyways, this is a blog post about perspective. It’s about changing the conversation. Financial independence is not about sacrifice. It’s about spending money on time.
So allow me to ask you this: why is buying time less appealing than spending?
I am not a licensed investment or tax adviser. All opinions are my own. This post contains advertisem*nts by Google Adsense. This post also contains internal links, affiliate links, and links to RTC social media accounts.
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