Advertising
Advertising

5 Reasons to Pursue Financial Independence

5 Reasons to Pursue Financial Independence

    Do you crave a life without financial constraints?

    Too often our ability to make progress towards our passions has been limited by the “rat race.” In the rat race, we work for our employers, the government by paying taxes, and the lenders (ie, of our mortgages, credit cards, car loans, and student loans).

    Advertising

    Usually, our own passions are dead last, relegated to when we can find free time — if they get focused on at all.

    Fortunately, you can have a very different plan. Here are five reasons to pursue financial independence…even if you love your job.

    Financial Independence is Important Because Job Security is an Illusion

    Financial vulnerability often motivates entrepreneurs. Many entrepreneurs work ridiculous hours, risk their entire life savings, and neglect important relationships for a dream with no promise of success. What sane person would take such risks?

    Advertising

    Well, one thing to note is that regardless of whether you are self-employed, a traditional employee, or a business owner, you are in business for yourself. The primary distinction is who are your customers? For a typical employee, your “customer” is your boss. He or she is the one who is purchasing your services. However, if you own a business, you have many customers (or bosses).

    Accordingly, many entrepreneurs feel it is inherently more risky to have a single boss than having many “bosses.” For example, if you own a thriving business where you can control costs, growth, and marketing, then a whole bunch of customers would have to effectively “fire” you before you were forced out of a “job.” A business owner’s sustenance is no longer determined by single person’s opinion or by shareholders who may not even know his or her name. This is why financial independence is so important to traditional employees: no amount of education or experience can guarantee that even the most talented and faithful workers won’t be unemployed by the end of business tomorrow. If you are an employee, the reality is that you are constantly interviewing for your job.

    Financial Independence is Important Because it Means You Are No Longer Trapped in the “Rat Race”

    Sometimes there is an outright disdain for work nowadays. We marvel at those who retire early. However, I have come to the conclusion that the idea of leaving the “rat race” excites me infinitely more than the idea of retirement. For example, there’s an internal yearning to make a difference that would be very hard to achieve if your idea of retirement is sitting on the couch everyday watching The Bold and the Beautiful. Stephen Covey said that we all want to “live, to love, to learn, and to leave a legacy.” The right work can help us fulfill such aspirations.

    Advertising

    Rather than eliminating work, I suspect that many people crave eliminating their need of provision clouding every decision that they make, stopping them from chasing their dreams, and robbing them from spending time with the people who matter most. A financially free person possesses insights and goals untainted by concern for sustenance, can pursue opportunities that are generally perceived as risky but high reward, and can control his or her time in ways those stuck working nine-to-five jobs can only dream of.

    Financial Independence is Important Because It Means You Are in an Even Better Position to Help Others

    It was Margaret Thatcher — The Iron Lady — who said that “no one would have remembered the Good Samaritan if he only had good intentions.” Some people piously say that they just want enough for their families. It’s as if they have outright indignation for anyone who craves more. Ironically, they completely miss how ridiculously selfish they sound.

    If we want to live extraordinarily, then we often have to look beyond our own four walls to see who we can serve. Just because charity starts at the home doesn’t mean it should stop there. One reason it is so important to expand your vision is that it will often be the stimulus prompting others to get involved in your dream. For example, part of the reason Oprah, Rachael Ray, and Dr. Oz are so successful is because they “major” in helping others. It is the problems that you solve for others that serve as the doors to your next promotion. One of the benefits of being financially free is that you are also free to tackle some really complex problems!

    Advertising

    Financial Independence is Important Because it Means Fun is Amplified

    While happiness can’t be bought, fun can. I personally have no problem if someone wants to walk into his dream home or drive his dream vehicle, as long as he has been financially responsible. Recently, billionaire heiress Petra Eclestone purchased the old Aaron Spelling 57,000 square foot mansion for a staggering $85,000,000. In an interview, one reporter asked her response to the many detractors arguing that there were so many better uses for her family’s money. She replied she was extremely active and generous to her chosen charities and felt no responsibility to stop living her life based on what others have to say. One takeaway point was that just because you can have fun with less doesn’t mean you have too. Money is merely a tool. It only amplifies what’s already there, so if you have fun and give with your existing income and assets, just imagine what fun you can have and charitable deeds you can perform if all your financial resources were amplified.

    Financial Independence is Important Because it Increases Your Ability to Structure Work to Suit You

    Of course, choosing or creating the right kind of work is not limited to those who are financially independent. However, the two do appear to be linked. In the Millionaire’s Mind, Thomas Stanley argued that millionaires are more likely to have chosen work that uniquely suits them; the right work serves as a competitive advantage. Being financially independent means that you have more time and resources to explore your skills and abilities, your personality, and your passions and dreams and decide how best to incorporate that into your work; you have all the more opportunity to make sure that you get it right.

    Recently, there has been an explosive increase in people exploring alternative work models, such as freelance work, independent contractors, consulting, distributorships, licensing, etc. Just because one may not be a good fit doesn’t mean that you can’t find or create an authentic fit with another model. Be mindful regarding your work. Not only may your financial independence be determined by this decision but also your sanity!

    Closing Thoughts

    Not only are financial independence and building phenomenal wealth laudable goals, they are also achievable. Consider that when you are inundated with opportunities to forsake your budget for purchases misaligned with your values. Consider that additionally when market volatility and doom pundits make you want to duck and hide rather than invest. Most millionaires consistently invest at least 15% of their incomes, despite alluring sales and tumultuous economic climates. Follow that example when you face difficult financial decisions; choose freedom today.

    (Photo credit: Growing Money via Shutterstock)

    More by this author

    5 Reasons to Pursue Financial Independence

    Trending in Money

    1 25 Killer Sites For Free Online Education 2 How to Develop a Millionaire Mindset in 6 Simple Steps 3 5 Books You Must Read if You Want to Be a Millionaire in Your 20’s 4 20 Better Money Habits to Help You Increase Your Savings 5 50 Businesses You Can Start In Your Spare Time

    Read Next

    Advertising
    Advertising
    Advertising

    Last Updated on July 4, 2019

    25 Killer Sites For Free Online Education

    25 Killer Sites For Free Online Education

    Whether you’re five or ninety five, the internet has a lot to offer. Particularly when the topic is education, the resources on the internet are endless.

    Best of all, many high quality sites are completely free. From history to coding, excellent free online education awaits on the following 25 sites.

    1. Coursera

    Untitled copy

      Coursera is a website that partners with universities and organizations around the world. This brings a wide variety of topics and perspectives to one searchable database.

      Coursera is a powerful tool for free online education, and includes courses from many top universities, museums and trusts. This gives the site an extremely wide range of in-depth courses.

      Coursera is extremely useful if you’re looking to study many different topics, or want courses from different schools and groups.

      2. Khan Academy

      Untitled 2 copy

        Partnering with many post secondary schools, Khan Academy offers a useable, well organized interface. Also curating many courses from around the web, Khan Academy offers impressive depth on many different subjects.

        Among the more well known educational sites, Khan Academy is also incredibly useable, which may make it easier to keep learning goals.

        3. Open Culture Online Courses

        Untitled111 copy

          If you are struggling to find exactly the material you are looking for, try Open Culture’s listing of free online education courses. The page highlights 1000 lectures, videos and podcasts from universities around the world. The site features a lot of material found only on universities private sites, all in easy to browse categories. This means you can find hundreds of university courses, without having to visit and search each university’s own site.

          Open Culture’s list features courses from England, Australia, Wales and many state universities around the United States. A very helpful resource for finding many courses in one area of study.

          4. Udemy 

          Untitled 4 copy

            Udemy’s free courses are similar in concept to Coursera’s but additionally allows users to build custom courses from lessons.

            Working with many top professors and schools, the site mixes the customizable platform of other sites with a heavy emphasis on top quality content. This is another site however, that mixes free and paid content.

            Advertising

            5. Academic Earth

            Untitled 5 copy

              Another site with courses from many different schools is Academic Earth. Much like the three sites above, Academic Earth brings together top notch courses from many different sources, and focuses on offering a wide variety of subjects.

              Academic Earth lists courses by subject and school, so it might be easier to find what you’re looking for.

              6. edX

              Untitled 6 copy

                Another great option for free online education is edX. Also bringing together courses from many different schools, the site has impressive, quality information for everyone. edX covers a great range of topics.

                7. Alison

                Untitled 7 copy

                  Unlike the previous sites on this lists, Alison is a free education site offering certification in some areas. Alison offers courses mainly in business, technology, and health, but also includes language learning courses.

                  It’s a great option if users need certification for their learning as Alison also offers school curriculum courses.

                  8. iTunesU Free Courses

                  Untitled 8 copy

                    A very convenient place for free online education is iTunesU, because it integrates seamlessly with your iPod, or any app-ready Apple mobile device. On iPad, iPhone, or iPod touch, users download the iTunesU app.

                    Desktop users can access  iTunesU on the upper right hand corner of the iTunes Store. iTunesU is also convenient because the store is categorized much like iTunes.

                    Users can search learning materials in many different ways, including genre and topic. However, courses are often a mix of free podcasts or videos, and paid content.

                    ITunesU does include courses on a pretty wide scope of topics, but does not integrate with Android, Google or Windows mobile devices.

                    9. Stanford Online

                    Untitled 9 copy

                      Your hub for all the online offerings from Stanford University, Stanford Online offers self-paced and session based courses. While Coursera features some courses from Stanford, many classes are only available via other hosts. Some courses require iTunes, but most are completed in your web browser.

                      Advertising

                      Stanford Online is a great site for high quality courses, though the topics are somewhat limited compared to sites partnered with more than one school.

                      10. Harvard Extension

                      Untitled 10 copy

                        Like Stanford Online, Harvard Extension features free online education courses from Harvard only. This is another excellent source for top notch course material, though the course variety is less rich than multi-school sites.

                        Additionally, Harvard Extension allows you to search for courses by professional certificate. This makes it much easier if your online education goal includes certification.

                        11. Open Yale Courses

                        Untitled 11 copy

                          Open Yale Courses echoes Harvard Extension and Stanford Online, in that it offers only courses from Yale. While the site is similarly limited to topics taught at the school, Open Yale Courses offers a lot of videos of actual campus lectures. The availability of videos makes the site a great option if you’re looking for quality courses, but learn better by watching than by reading.

                          12. UC Berkeley Class Central

                          Untitled 12 copy

                            Much like the other schools on this list, UC Berkeley has a variety of free online education options. The school has slightly fewer courses than the schools above, but includes some supplementary lectures, webcasts and RSS Feeds, making it easy to keep up with the topics you choose.

                            13. MIT OpenCourseWare

                            Untitled 13 copy

                              Similarly, MIT offers a variety of free courses. The school has a comparable number of courses to the schools above, plus includes very in-depth course materials on the subjects available. MIT also offers free RSS feeds, a convenient way to continue learning.

                              14. Carnegie Mellon Open Learning Initiative

                              Untitled 14 copy

                                Carnegie Mellon’s free online education site is comparable with the other school’s on this list, however, Open Learning Initiative also covers a smaller range of topics. But for the topics that are covered impressive, in-depth material is available.

                                15. Codecademy

                                Untitled 15 copy

                                  Codecademy is a website dedicated specifically to teaching coding. Where other coding sites follow an example/practice session workflow, Codecademy includes a live practice window. This means you can practice coding while still viewing the lesson material.

                                  The courses at Codecademy are well written and easy to follow and the website is organized very nicely. Codecademy features a centralized dashboard where you can monitor your progress, plus organizes lessons into complete modules. This lets you learn an entire language without needing to pick the next course manually.

                                  Advertising

                                  16. Code

                                  Untitled 16 copy

                                    Code is another website focused on coding and app writing. A site with high quality courses, Code also features learning options for kids.

                                    In addition to kid friendly courses, Code offers free online education classes on a wide variety of technology topics. These classes include app writing, robotics and Javascript.

                                    Most of the courses are also geared in a such a way that they can be useful in a classroom setting. This makes Code a great resource for harder to find coding topics, as well as various learning settings.

                                    17. University of London Podcasts

                                    Untitled 17 copy

                                      The podcast page on the University of London website is another great source for free education. While the courses are limited to podcasts, the site features podcasts from it’s own campus, as well as eleven universities in and around London. This gives learners a wide base of topics and lectures, but still ensures in-depth material.

                                      18. University of Oxford Podcasts

                                      Untitled 18 copy

                                        Similar to the University of London, the University of Oxford features many different podcasts. Most are public lecture series or lectures from visiting professors, with several different recordings available.

                                        The advantage to this particular site is that podcasts are organized into series, making it easy to subscribe to multiple lectures on one topic. Another good site for thoroughly in-depth lectures.

                                        19. BBC Podcasts

                                        Untitled 19 copy

                                          For the more casual learner, the BBC offers a wide variety of podcasts on many different topics. Most podcasts are updated weekly, and focus on everything from finance, to sports, to current events.

                                          Through the World Service line of podcasts, there are also many in different languages. The focus of these podcasts are less in-depth and theory based, which may be more accessible to the average person.

                                          20. TED-Ed

                                          Untitled 20 copy

                                            Another great destination for more general learning is TED-Ed. From the same people that brought you the all encompassing, motivational web series, comes a site chocked full of educational videos. Most include impressive animation, and all are ten minutes long or less.

                                            Not only is TED-Ed an excellent site for the curious, it also includes supplemental materials and quizzes on the videos. This makes the site extremely useful in formal education settings, as well as in entertaining ways to brush up on new discoveries and topics.

                                            Advertising

                                            21. LessonPaths

                                            Untitled 21 copy

                                              LessonPaths is another great tool for those looking for a more usable and convenient way to access learning material. On this site, users create link playlists of their favorite learning materials from other sites. Users then rank these collections, making it easy to find many different high quality, accessible sources on a given topic.

                                              22. Memrise

                                              Untitled 22 copy

                                                Another impressive free online education site offering ease of use and convenience is Memrise. Available both on desktop and as an app, Memrise is a particularly powerful tool if you are studying a language. The site encompasses many other topics as well, though some of the course material is user generated content.

                                                Part of what makes Memrise special is their integration of games into the learning materials, mixing learning with entertainment.

                                                23. National Geographic Kids

                                                Untitled 23 copy

                                                  The kids site for National Geographic is another site that makes free online education applicable for younger users. For those looking for kid friendly education, a large variety of games, puzzles, videos and photos keeps kids interested on this site.

                                                  National Geographic Kids doesn’t organize learning into courses, making materials available by topic and medium instead. This makes National Geographic Kids a good option for those looking for a more casual learning environment.

                                                  24. Fun Brain

                                                  Untitled 24 copy

                                                    Fun Brain is another good option for kids who want to learn online, but focuses on games and fun puzzles. Particularly focused on math and reading, Fun Brain’s game based approach can be valuable if the child in question struggles to pay attention.

                                                    Fun Brain offers rewards and challenges as well, and is another site aimed at a casual learning experience for kids K-8.

                                                    25. Whyville

                                                    Untitled 25 copy 2

                                                      Similar to the sites for kids free online education is Whyville a destination for preteen online learning. The site includes a variety of social features, with a focus on learning materials geared for young teens.

                                                      Whyville also mixes in educational games, to make the site a well rounded option for kids too old for simple games, but too young for heavy reading based material.

                                                      More About Online Learning

                                                      Featured photo credit: Dai KE via unsplash.com

                                                      Read Next