Thoughts
Financial freedom is a psychological and social construct.
My feelings about money are often contradictory. Sometimes I crave financial security, while at other times, I feel I don’t care much about wealth.
My current financial situation is stable, and I’m not spending that much anyway. Extra money does not bring me happiness. In fact, the pursuit of more money seems to detract from my overall well-being, as evidenced by research showing a negative association between the pursuit of wealth and happiness.
My job provides a comfortable income, and any stress associated with it is manageable with proper self-care. The challenges in my life stem primarily from personal choices and the resulting mental strain.
The Goal-Plan-System framework discussed in the video is a valuable tool for personal development, and can be applied to all kinds of goals. For instance, I have a long-held aspiration to become a skilled machine learning engineer. While it’s not just a wishful desire, I haven’t actively pursued it. This is a goal that could bring me genuine fulfillment, and I should have been committed to invest more time and effort into making it a reality.
Notes
Understanding Financial Freedom
- Financial freedom is a psychological and social construct
- Understand why you want financial freedom and what it would enable for you
- More free time? Freedom from a job? Certain lifestyle?
Setting a Monetary Goal
- Decide on a target income amount that would make you feel financially free
- Reverse engineer to determine how to reach that income level
- Through a business, investments, etc.
Evaluating Your Current Plan
- There is often a disconnect between people’s financial goals and their current plan
- If the current plan won’t achieve the goal, you must change the goal or the plan
Addressing Knowledge Gaps
- Many people lack knowledge about viable paths to achieve financial freedom
- Reading books, listening to podcasts on entrepreneurship and wealth can help fill this gap
- Recommended books:
- Million Dollar Weekend by Noah Kagan
- Millionaire Fastlane by MJ DeMarco
- Dotcom Secrets by Russel Brunson
- $100m Offers by Alex Hormozi
- Blue Ocean Strategy by Kim and Mauborgne
- Recommended video playlist:
Optimizing Your Lifestyle
- Take care of your health (diet, exercise, sleep)
- Minimize time wasting activities (TV, social media scrolling)
- Leverage your current job (work on side hustles during downtimes)
- Surround yourself with likeminded people pursuing similar goals
The Journey Matters
- Pursuing financial freedom is a long journey, so enjoy the process
- Don’t neglect health, relationships for the sake of money
- Treat it like an exciting video game, with increasing difficulty levels