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Part 2 – What does it take?
Different Pathways to Wealth
I will now focus on the second question I am interested in, which is how we can achieve financial freedom. To answer this question, let’s turn our attention again to the group of rich people I mentioned earlier. You may have wondered how some people manage to create their wealth. There are several main ways this can happen. Let’s talk a little bit about that.
One pathway to wealth is through inheritance. However, this method often falls outside our control and depends largely on circumstances beyond our influence, so we might as well set aside any envy we may feel towards those who are fortunate in this way.
Another way to accumulate wealth is through possessing a unique and outstanding talent, as seen in individuals like soccer star Lionel Messi or singer Beyoncé. If you have a similar ability that you can offer to the world, it could lead to financial independence and significant wealth accumulation, much like it has for them. It’s crucial to remember the saying, “Hard work beats talent when talent doesn’t work hard.” Without their dedication to work and refine their skills, neither Messi nor Beyoncé would have reached the levels of financial success they enjoy. I admire such individuals not only for the joy their talents bring but also for their commitment to developing those talents.
Finally, the most common route to achieving wealth, and likely the one most of us will follow, involves hard work. This method, rooted in consistent effort and persistence, is the backbone of financial freedom for the majority. If you’re skeptical, you’re welcome to explore this further through your own research. But if you’re ready to trust my insights, let’s continue and explore what further conclusions we can draw from this discussion.
Hard Work as a Path to Financial Freedom
Conclusion 1 – To become financially independent and eventually not have to work, I must first work hard.
To attain financial independence, it’s not enough to simply work; one must continually strive to work harder. Consider it this way: you’re effectively front-loading your efforts in life to earn your financial freedom ahead of time. Financial freedom is indeed a privilege, and if you aim to secure this privilege and stand out from those who remain financially dependent, then you must be willing to exert more effort than them.
To achieve extraordinary outcomes—whether in finance, sports, or any other field—extraordinary effort is essential. Financial freedom doesn’t come automatically; it requires your utmost dedication and effort. The relationship between effort and results is direct and proportional. While anyone might get lucky in gambling at any given moment, over the long term, such as across a lifetime, relying solely on luck to achieve one’s goals is not viable. Ultimately, it’s personal qualities and consistent hard work that lead to success.
The Costs and Sacrifices of Wealth Accumulation
Conclusion 2: The cost of achieving wealth through hard work is often substantial.
Attaining wealth usually requires immense dedication, which often involves long hours, significant stress, and sleepless nights. These demands can lead to strained social relationships, little time for leisure, and compromised family connections. Many wealthy seniors later express regret for not having spent enough time with their loved ones. As wealth increases, so does societal and media scrutiny, which can bring additional social tension and criticism. This aspect of wealth is often underestimated by those who aspire to it. Remember, with great privileges come great responsibilities.
It’s important to recognize that many aspects of life involve trade-offs, and finding balance is a personal decision. If your goal is to become extremely rich, be prepared for the high costs involved. This might be more than what some people are willing to pay. Understand that the extra effort and hardship will likely surpass those who do not seek financial freedom. Financial success rarely happens by chance; it is something that must be earned.
Creating Value
In my view, financial freedom should ideally be a byproduct, not the primary goal. It’s the result of creating something valuable for the world that benefits others. Instead of focusing solely on accumulating wealth, consider what good, service, or pleasure you can offer. Think about how you can improve people’s lives, solve their problems, inspire them, make them laugh, or support them in tough times. The bigger the problem you solve, the greater your potential reward, both emotionally and financially.
Most of the world’s richest individuals gained their wealth by addressing key human needs. Elon Musk revolutionized payment services, electric vehicles, and space travel, while Bill Gates pioneered software that ushered in a new technological era. These examples illustrate that true success often stems from meaningful contributions rather than mere financial pursuits. Focus on what you can create, not just the money. Without this broader perspective, your goals may become distorted and your priorities misplaced.
There are businesses that profit from human tendencies, such as gambling companies that capitalize on our natural risk-taking tendencies and the dopamine release associated with gambling. While I do not advocate for exploitative methods of wealth accumulation, it’s undeniable that these businesses meet a certain demand, which could be seen as serving a societal need. Therefore, if such paths to financial wealth align with your ethical standards, I do not dismiss them outright.
The Journey to Financial Independence
In concluding this article, I want to emphasize that your quest for financial independence should be enriching and viewed as a journey rather than a final destination. Just as you go to work not just to pay bills but also to add value, develop yourself, and enhance the world, so too should you approach your pursuit of financial freedom. Act with positivity and vitality towards achieving freedom or early retirement. If this endeavor causes you undue stress, fear, or disrupts your sleep, it might be time to reassess your strategy or accept that these may be the sacrifices required for such privileges.
The journey to financial independence is more of a marathon than a sprint, and it’s important to enjoy the process and the experiences along the way. Do not be misled into thinking that financial independence will entirely remove the need to work. Even if you technically no longer have to work, the habits and the discipline of work will remain ingrained. Simply idling at home or continuously traveling without purpose will not fulfill you.
Work fulfills a fundamental human need. Philosophers like Aristotle, Kant, and Sartre argued that work provides meaning and purpose to our lives. It brings a sense of pride and satisfaction, affirming that we have realized our potential and contributed positively to the world. Therefore, financial independence should not be seen as an escape from work, but as an opportunity to engage in work that is truly meaningful and satisfying.
