Financial independence is something that we build over time, it’s a journey as much as it is a destination. We don’t need to wait until we get to the end of it to benefit from its power.
In fact, pursuing financial freedom brings benefits almost as soon as we start!
Here are the benefits that we build up over time as we take steps to improve our financial situation:
Greater sense of security
When you have money set asides, if something unusually expensive happens you’re safe. Whether it’s a car breakdown, house repairs or unemployment, having a financial buffer helps you get through some of life’s most challenging times.
Greater peace of mind and confidence
Financial trouble is one of the main reasons marriages fail. Having a certain level of financial security and healthy communication around the topic helps a lot in our relationships, with our partner but also with other family members.
Having a financial buffer also relieves the stress of losing our jobs. The more financial security we have, the more relaxed and confident we can be at work. And that in turn can lead to better performance and higher pay.
Better position to negotiate
Having solid financial security helps you in negotiations simply because you have a stronger base. You’re not as pressed to the deal go through immediately. And you actually have a strong alternative: walk away, wait for a better opportunity, without the risk of running out of money. This is great when negotiating salary at work for example or your next mission. Saying no is an option you can consider.
Make better decisions
When you have a good financial buffer, money does not have to be the main decision factor. Once you’ve achieved a certain level of financial freedom, you can give more importance to other criteria when making decisions and be more aligned with your values.
Greater control over use of time
Having more autonomy and more control over our time is the freedom most of us are looking for (often without realizing at first). And financial security and freedom gives us that.
When you have a good financial buffer you can have better control over the work you do, and when you reach financial independence, work becomes truly optional. As you progress on your journey, you will find that you more easily take time away from work for what important to you:
- Travel the world,
- Be with your family or take care of a loved one,
- Work on a passion project,
- Volunteer for a cause important to you,
- Or anything else you’d like to dedicate time to!
Want these benefits in your life?
If you want any of these benefits in your life, then you’re on the path to financial independence, and you’re definitely in the right place!
To continue your journey, here are a few things you can do:
- Join the FIRE Belgium Facebook Community
- Sign up to the FIRE Belgium Newsletter
- Subscribe to the FIRE Belgium Show, on YouTube, Apple Podcasts, Spotify, or Google Podcasts.
- Connect and say hi on LinkedIn or Facebook!
- Learn about index investing! Check out the free workshop where I share the key principles and my roadmap to get started.