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Flickr image "Epiphany 3" by Felipe Venancio

The ultimate paradox of financial freedom has been revealed to me.

All this while, I’ve been reading, researching and writing about financial freedom. It took a recent episode of moving my net worth from one asset class to another that an epiphany struck me.

What is this ephiphany that Panzer encountered?

Financial freedom is in the mind

Financial freedom first and foremost has to begin in the mind. It’s where you conceive the very idea that you can take control of your finances by living within your means, saving and investing, growing your means and protecting your means.

As I started with this idea, and implemented it in the various posts I’ve outlined in this blog, I started to gain new insights about myself. For instance, tracking where every single dollar I earn and spend helped me modify some of my habits when it comes to spending. It has allowed me to evaluate where money (that represents life energy) goes and how that either adds value or subtracts value out of my life.

I also started some projects on growing my wealth. My blog monetisation efforts have given modest returns but they are positive returns. While I’ve managed to beat fixed deposits returns for the past 6 years since I started managing my own money, I’ve also under-performed for 2009 year-to-date and I hope I can end the year with a positive return.

Throughout all these experiences, I realised one thing.

I am already financially free.

Financially free

Huh? What is Panzer talking? Is he smoking a banned substance and high?!

No, what I’m saying is this.

I am not financially free using my traditional definition of being in a position where passive income from investments exceed my living expenses. I still need to get up and go to work in the mornings to make bread for my family.

But what I’ve realised is that in my current situation, my income exceeds my living expenses. My current career suits me as I look forward to go to work in the present environment. Because even if passive income exceeds living expenses, we can never predict if our life is taken away or our health is taken away. Thus, ultimately, happiness in life is wanting what you already have.

That means, in many respects, I already have a form of financial freedom.

Wanting what you have

For too long, I’ve waited to be happy only if I’ve achieved this or that and only if I’ve managed to hit financial freedom. It is still a goal I am striving for, but I realise that enjoying the process towards financial freedom. Being able to enjoy and appreciate what I have, does wonders towards my sense of well-being.

The target of financial freedom drives me. But the awareness and consciousness that being grateful for where I am now is also important liberates me from being dependent on achieving financial freedom to be happy.

A 42 year old successful CEO recently passed away at the OSIM International Triathlon. By all accounts, he had a good life. But it was taken away all so suddenly. Going forward, I’ll try to take each day at a time and to want what I already have.

I may or may not achieve my goal of being financially free with property investment (which I’m still considering and evaluating suitable properties) or perhaps go back to equities or even stay sidelined and wait for the big “correction”.

Whatever it is, health, family and happiness is important.

Financial freedom is a journey. If you enjoyed the journey, you won’t fret too while having your eye on the destination.

Be well and prosper.