The real use of money is to buy freedom
paraschopra.com
The real use of money is to buy freedom
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Re: The real use of money is to buy freedom
#2Great post Paras. However, I wish you would have addressed what you do with your new found financial freedom. I suppose running your business takes up most of your time. That's fine as long as it's enjoyable I guess.
The question here is, if something, what would you have done differently ? Or, going forward, what are you going to do differently ?
Also, the modern economy is poised against us in terms of preserving the value of our wealth. Because of this, I disagree with your final conclusion (the sweating over investments bit..). The hard part about money is making it, but it's also hard to keep it. Inflation eats away at what you have, furthermore, depending on your country (India in this case..) you don't have 250 years of documented economic history to make your investment decisions.
If you've reached your financial goal, mine is 25x of annual expenses then yes, maybe you are truly financially independent and now free. You have literally bought freedom. You're right, materialistic pursuits will probably never lead to happiness. However, for some the road to financial independence is longer than others. And yes, many people lose the plot along the way ;)
Maybe a more apt title for your post would be: "Having a successful business and a good amount of money buys you freedom" ? :)
Re: The real use of money is to buy freedom
#3By corollary, individual debt is fractional, voluntary slavery.
Or possibly it goes the other way. By being wealthy the truest freedom you enjoy is not having to worry about owing anyone anything.
Re: The real use of money is to buy freedom
#4"Money is coined freedom" - Fyodor Dostoevsky.
Re: The real use of money is to buy freedom
#5There is a really great article in The Atlantic (from 2011) called "Secret Fears of the Super-Rich" on this topic:
Excerpt: The respondents turn out to be a generally dissatisfied lot, whose money has contributed to deep anxieties involving love, work, and family. Indeed, they are frequently dissatisfied even with their sizable fortunes. Most of them still do not consider themselves financially secure; for that, they say, they would require on average one-quarter more wealth than they currently possess. (Remember: this is a population with assets in the tens of millions of dollars and above.)
Link: http://www.theatlantic.com/magazine/archive/2011/04/secret-f...
Re: The real use of money is to buy freedom
#6>A life spent mostly hoarding money and possessions is a wasted life
I find it interesting that an article whose tone is one of optimism is so judgmental.
Re: The real use of money is to buy freedom
#7>A life spent mostly hoarding money and possessions is a wasted life I find it interesting that an article whose tone is one of optimism is so judgmental.
If you see something wrong with that statement, why not point it out?
If someone said getting hooked on heroin and dying with 16 is a waste of a life, would you consider that judgemental, too?
To me it's just obvious that people often confuse symbols and things, and not only hoard possessions and money, but other symbols as well. And if I forget that for a while, the advertisement geared towards them reminds me. If that is being judgemental, so be it. I like to think it as being unable to miss certain things.
Re: The real use of money is to buy freedom
#8There is a really great article in The Atlantic (from 2011) called "Secret Fears of the Super-Rich" on this topic: Excerpt: The respondents turn out to be a generally dissatisfied lot, whose money has contributed to deep anxieties involving love, work, and family. Indeed, they are frequently dissatisfied even with their sizable fortunes. Most of them still do not consider themselves financially secure; for that, they…
I recall a colleague once (~10 years ago) telling me that some people he knew felt that 5k GBP would be enough to solve all of their (money) worries.
I thought it absurd, i.e. too low given things like planning for old age. I guess there are people who would think my estimate too low if I said I needed 5m for the same purpose. (not saying 5m is the right number for me or anyone else.)
Re: The real use of money is to buy freedom
#9"the pieces of green paper have value because everybody thinks they have value."
Freedom is fallacy.
Re: The real use of money is to buy freedom
#10Great post Paras. However, I wish you would have addressed what you do with your new found financial freedom. I suppose running your business takes up most of your time. That's fine as long as it's enjoyable I guess. The question here is, if something, what would you have done differently ? Or, going forward, what are you going to do differently ? Also, the modern economy is poised against us in terms of preserving t…
There's an interesting thread on Quora titled 'What does it feel like to be a self-made millionaire under the age of 25?' http://www.quora.com/Becoming-a-Millionaire/What-does-it-fee...
As you will read through it, terms like insecurity, worry, surprise on unchanged happiness levels would be quite common among the answers.
I have been thinking a lot about investments and have concluded that my main criteria is minimum management. If an investment requires active maintenance and management, it's not for me (unless I'm doing it for charity). This excludes many common investments such real estate and stocks. With others (say fixed deposits, metals, etc.) the post-tax returns are less than inflation so it may not be wise. Right now I have decided to invest mostly in mutual funds.
I'm okay with the risk because the biggest asset I have is myself. The insecurity about future never leaves us, but as long as I believe that I would be employable in future, I can always jump back.
EDIT: added ?share=1 to the URL. Thanks Casseres.