{"id":236475,"date":"2019-05-21T23:44:31","date_gmt":"2019-05-22T06:44:31","guid":{"rendered":"http:\/\/moneyboss.com\/?p=392"},"modified":"2023-12-05T14:18:07","modified_gmt":"2023-12-05T21:18:07","slug":"beyond-wealth","status":"publish","type":"post","link":"https:\/\/www.getrichslowly.org\/beyond-wealth\/","title":{"rendered":"Beyond wealth: What happens AFTER you achieve financial independence?"},"content":{"rendered":"
In their classic Your Money or Your Life<\/em><\/a>, Joe Dominguez and Vicki Robin argue that the relationship between spending and happiness is non-linear.<\/p>\n More spending brings more fulfillment \u2014 up to a point. But spending too much can actually have a negative impact on your quality of life.<\/strong> The authors suggest that personal fulfillment \u2014 that is, contentment \u2014 can be graphed on a curve that looks like this:<\/p>\n <\/p>\n Beyond the peak, Stuff starts to take control of your life. Buying a sofa made you happy, so you buy recliners to match. Your DVD collection grows from 20 titles to 200, and you drink expensive hot chocolate made from Peruvian cocoa beans. Soon your house is so full of Stuff that you have to buy a bigger home \u2014 and rent a storage unit. But none of this makes you any happier. In fact, all of your things become a burden. Rather than adding to your fulfillment, buying new Stuff actually detracts from it.<\/p>\n The sweet spot on the Fulfillment Curve is in the Luxuries section, where money gives you the most happiness: You’ve provided for your survival needs, you have some creature comforts, and you even have a few luxuries. Life is grand. Your spending and your happiness are perfectly balanced. You have Enough.<\/p>\n According to Dominguez and Robin, your goal should be to achieve Financial Independence<\/a>, the condition of having Enough for the rest of your life. “Financial Independence has nothing to do with rich,” they write. “Financial Independence is the experience of having enough — and then some.<\/strong>” This is achieved when your savings has reached a level that will sustain you at the peak of the Fulfillment Curve indefinitely.<\/p>\n As many Get Rich Slowly readers have discovered over the years, the exercises and advice in Your Money or Your Life<\/em> can transform your relationship with money, helping to break your dependency on Stuff. It’s a great book for learning how to align your spending with your values. It provides a roadmap to Financial Independence.<\/p>\n Where Your Money or Your Life<\/em> is less good, however, is providing advice for what to do after<\/em> you’ve reached this goal. What happens when you achieve Financial Independence? What happens when you have enough \u2014 and then some?<\/strong> Many people reach this place only to find themselves wondering, “What next?” It’s an important question, one that’s often tough to answer.<\/p>\n When you’re building your wealth snowball<\/a>, your goals and mission keep you focused on the future. They guide you toward the things you ought<\/em> to do while helping you avoid temptation and peril. Without a clear purpose, it’s difficult to stay on course during the long march to financial freedom.<\/p>\n Purpose is also important after you’ve obtained the wealth you desire.<\/strong><\/p>\n In his book You Can Retire Sooner Than You Think<\/em><\/a>, financial planner Wes Moss shares five “secrets” of a happy retirement. After surveying 1350 retirees across 46 states, Moss found that the number-one predictor of contentment is a sense of purpose.<\/p>\n “[Happy retirees] have a well-defined understanding of their purpose in life,” he writes. According to his research:<\/p>\n The bottom line: “Happy retirees know what their retirement money is for<\/em>.<\/strong>“<\/p>\n To that end, Moss encourages his clients (and readers) to foster a handful of “core pursuits” \u2014 activities that excite them and bring them joy. By developing these core pursuits before<\/em> reaching retirement or Financial Independence, you’re better prepared for what comes next.<\/p>\n Similarly, in Choose Your Retirement<\/em><\/a>, Emily Guy Birken writes that “a retirement based on values will be a fulfilling and contented experience”. Birken dubs this a “values-driven retirement”.<\/p>\n A values-driven retirement sounds great. But how do you discover your values? How do you pick your core pursuits? How do you decide what you want out of life?<\/strong> How do you answer the question, “What next?” I believe the answer goes back to creating (an adhering to) a personal mission statement<\/a><\/strong>.<\/p>\n With a mission statement, you have a roadmap to meaning. Without one, you run the risk of finding yourself lost in the woods where even your wealth won’t help you find the way home.<\/p>\n Note:<\/strong><\/em> At the end of this article, I’ll share a powerful exercise to help you discover purpose.<\/p><\/blockquote>\n A lot of people believe that if only they were wealthy, if only they had a million dollars, then all of their problems would be solved. Unfortunately, it doesn’t work like that.<\/p>\n There’s no doubt that money can buy food and clothes and shelter. Wealth grants access to better health care. It provides peace of mind so that you don’t fall into a panic when the car breaks down. But money is only a tool. It’s not a magic wand that will miraculously make you smart, fit, and kind.<\/strong> It’s up to you put the tool to constructive use.<\/p>\n What happens if you achieve financial freedom without<\/em> direction, if you don’t use money to build a better life?<\/p>\n At best, you drift aimlessly from day to day, never quite sure what you ought to be doing next. Maybe you aren’t destructive (to yourself or others), but you’re certainly don’t add anything of value to the world. I’ve met a couple of folks who, because they’re financially secure, shut themselves away all day playing videogames. That’s a shame. They have the freedom to do whatever they want…and they choose to do nothing.<\/p>\n At worst, reaching financial freedom without a plan plunges a person into decadence and despair. Think of all the horror stories you’ve heard about pro athletes, movie stars, and lottery winners who squander their riches on speed boats and strip clubs. (Here, for example, is the poignant tale of Jack Whittaker<\/a>, a West Virginia man who won a $315 million Powerball jackpot in 2002. Without a plan, instant riches brought devastation rather than delight.)<\/p>\n Money can buy freedom<\/a>, no question. But you<\/em> have to seize the freedom or it all goes to naught. You may win a billion dollars in the lottery<\/a>, but that won’t make a difference to your health and wealth if you elect to survive on a diet of donuts and vodka while lounging watching Friends<\/em> re-runs on Hulu.<\/p>\n “Money is important but it’s far from most important,” says Jim Wang<\/a> from Wallet Hacks<\/a>. “This becomes clearer when you reach Financial Independence, when you no longer need to work as hard to sustain yourself. You risk losing your sense of purpose if it was deeply tied to working for an income. This is why many retirees have trouble in retirement<\/a>!”<\/p>\n Money is important but a mission matters more.<\/strong><\/p>\n Once you have plenty of money, it’s your responsibility to make what you want out of life. (Truthfully, it always has<\/em> been your responsibility.)<\/p>\n For many people — including myself — I think the best answer to the question “what next?”, the best way to discover meaning and purpose, is to fix what’s broken in your life. After you achieve Financial Independence, you no longer have excuses not to become the best version of yourself, whatever that means to you. As an example, here’s my own story.<\/p>\n When I was younger, I was deep in debt<\/a>. I was also fifty pounds overweight. I had time-management issues. My relationships were built on a false projection of myself. I used to think that if I could win the lottery or otherwise luck into a windfall, all my worries would go away. But when I eventually achieved complete Financial Independence, my problems didn’t disappear. Quite the opposite.<\/p>\n It turned out that J.D. with money was the same as J.D. without money. He remained a fat, lazy procrastinator who was unhappy with his situation.<\/p>\n <\/p>\n I had fixed my finances by becoming the CFO of my own life<\/a>, by running my personal finances like a business. Slowly, it dawned on me. In order to fix everything else that was broken, I’d have to take responsibility for all<\/em> of it.<\/strong><\/p>\n Money wouldn’t magically make things better. Nobody else was going to do the work for me. If I wanted to repair what was broken, I had to do it myself. Furthermore, I realized that \u2014 like the hero of a fantasy or science-fiction novel \u2014 the power to fix my problems had always<\/em> rested in my hands.<\/p>\n I began to make changes instead of excuses.<\/p>\n I lost weight, got fit, learned Spanish, traveled to Europe and Africa and South America, and began to build better relationships. I moved to a neighborhood where I could walk for 90% of my errands. I learned to ride a motorcycle and shoot a gun. I wrote a book<\/a> (two, really) and became better at public speaking. I forced myself to set aside my introversion and relish the company of others, even strangers.<\/p>\n When I accepted responsibility for everything<\/em> in my life, things got better. Lots better.<\/p>\n Note:<\/strong><\/em> My life isn’t perfect, and I don’t want to pretend that it is. Truthfully, I can sometimes go months forgetting that I must be my own hero. I grow complacent and slowly slide back into bad habits. I eat poorly. I play too many videogames. I drink too much wine. I don’t spend enough energy maintaining friendships. Over the past year, for instance, I’ve packed on twenty pounds. But I know now how I ought to live \u2014 and when I live that way things are great!<\/p><\/blockquote>\n Supplied with what seemed like limitless time and money<\/a>, I realized that I<\/em> was the only one who could fix the things that were wrong in my world. I realized that it had been up to me all along. It was a harsh epiphany.<\/p>\n My story isn’t unique. Turns out it’s rather commonplace.<\/p>\n For instance, Todd Tresidder (the Financial Mentor<\/a>) says that after he achieved financial independence at age 35, he had a similar insight. He felt lost, directionless. It wasn’t until he realized that only he<\/em> could give himself direction that he found his way again.<\/p>\n This I believe: If you’re not sure what your purpose is, fix yourself first \u2014 then move on to other goals.<\/strong><\/p>\n After you’ve fixed yourself, you can turn your attention to making the world at large a better place. (Some folks might be tempted to focus on improving the world first. I think this is a huge<\/em> mistake. You’ll be much more effective if you take care of yourself first before moving on to help others.)<\/p>\n Here, for instance, is the story of Jason Brown<\/a>, a former professional football player who gave up millions of dollars to do something more meaningful for himself…and the world.<\/p>\n In 2009, after four years as a pro, Brown signed a five-year $37.5 million contract with the St. Louis Rams, which made him the highest-paid center in NFL history. He was financially independent. He could do anything he wanted, and he did not<\/em> want to play football. Three years later (at age 29), Brown quit his career to become a farmer \u2014 even though he’d never farmed a single day in his life. (He learned how to grow crops from YouTube!)<\/p>\n But Brown isn’t growing the food for himself. His First Fruits Farm<\/a> raises sweet potatoes to donate to local food pantries. “When I think about a life of greatness, I think a life of service<\/strong>,” says Brown. He’s found meaning through helping others.<\/p>\n Sidenote:<\/strong><\/em> In 2014, Brown delivered his own child<\/a> after his wife went into labor on the farm and their midwife couldn’t reach them in time!<\/p><\/blockquote>\n<\/span>The Power of Purpose<\/span><\/h2>\n
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<\/span>Money Without a Mission<\/span><\/h2>\n
<\/span>Fix Yourself First<\/span><\/h2>\n
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<\/span>Make the World a Better Place<\/span><\/h2>\n