This post has been updated and republished with a sharper perspective on what financial freedom really means.
Read the latest version here:
Smart Money 101: Why Financial Freedom Isn’t About Getting Rich — It’s About Needing Less
Will Making More Money Automatically Give You Financial Freedom?
Most people believe that you need at least $1 million to be financially free. TikTok, CNBC, and Forbes constantly push the idea that you need $3 million or more to retire comfortably. But here’s the real question: If money alone guarantees financial freedom, why are so many wealthy people still chasing more?
I once thought, “I just need to make more money, and everything will be fine.” So, I budgeted, saved aggressively, took on side hustles, and even started investing. But as my savings grew, so did my anxiety. The goalpost kept moving—what started as a $500K target became $1 million, then $5 million.
That’s when I came across a story about Elon Musk that changed my perspective.
At the start of his career, he lived on just $1 a day as an experiment to see how little he actually needed to survive. The result? He realized that with just $30 a month, he could still eat and function perfectly fine.
This blew my mind. Financial freedom isn’t just about how much money you make—it’s about how little you actually need to live the life you want.
Is Your Financial Goal Realistic or Just a Social Illusion?
You’ve probably heard that you need at least $1 million to achieve financial freedom. But have you ever questioned whether that number is real?
According to The Wall Street Journal, an average American needs about $5 million to retire comfortably. But the same research also revealed something shocking: Most people can be happy with far less.
So, is your financial goal truly based on your needs, or is it shaped by marketing, social media, and peer pressure?
At one point, I believed I needed at least $5 million to be financially free. But when I analyzed my expenses, I realized that much of it was based on societal expectations, not personal needs.
For example, I thought I had to buy a Tesla Model X. But did I actually need it? If I was honest with myself, the real reason was “Owning a Tesla makes me look successful.”
So, I decided to try something different.
The Deserted Island Test: Do You Really Want What You Think You Want?
Let’s do a thought experiment.
Imagine you’re living alone on a deserted island.
- Would you still need a Tesla?
- Would you still crave a Louis Vuitton bag?
- Would you feel incomplete without annual trips to Europe?
When you strip away societal expectations, you start realizing that many of your financial goals are not actually yours.
The truth is, our spending habits are heavily influenced by advertisements, Instagram influencers, and social comparisons. We don’t just buy things for ourselves—we buy them to be seen in a certain way.
If you truly want financial freedom, you must first separate what YOU actually want from what society has conditioned you to want.
What Do You Really Need for Financial Freedom?
Take a look at Warren Buffett. He is one of the richest men in the world, but he still lives in the same modest house in Omaha, Nebraska that he bought decades ago. He drives an ordinary car and doesn’t spend his money on flashy luxuries. Why?
Because he knows that financial freedom isn’t about having more—it’s about needing less.
Recently, I changed my spending habits and experienced a new kind of freedom. I used to think I needed Nike’s latest limited-edition sneakers and the newest iPhone every year. But I made one simple rule:
“I will not spend money just to impress others.”
As a result, my financial goals became more realistic, and financial freedom felt much closer and more achievable than ever before.
3 Questions That Will Bring You Closer to Financial Freedom
People often ask, “How much money do I need to be financially free?” But that’s the wrong question. Instead, ask yourself:
1. Is my financial goal based on my real needs or someone else’s idea of success?
Some people say you need $1 million, while others insist you need $5 million. But have you actually calculated how much YOU need?
For example, if you think you need $1 million to retire, have you done the math? Many people discover that they can maintain a comfortable lifestyle with half that amount.
Make sure your financial goal is based on your actual needs, not just what society tells you.
2. Do I want this because I truly desire it, or because society tells me I should?
Think about these common financial goals:
- Owning a luxury car
- Living in a high-rise apartment in New York
- Buying designer brands
Now ask yourself: Would I still want these things if no one else could see them?
A lot of what we think we want is just a product of advertising, influencer culture, and social status games.
If you don’t actually care about these things, why spend years of your life working to afford them?
3. If I stop spending on this, will my life actually be worse?
Many people say, “I can’t give up my daily Starbucks!” or “I need to go on at least one vacation a year!” But do these things truly make you happier?
- If you stopped buying a $6 latte every day, would your life fall apart?
- If you skipped a vacation this year, would you actually be miserable?
- If you didn’t upgrade your iPhone, would your productivity suffer?
Most of the time, cutting back on expenses doesn’t affect your happiness at all. But eliminating unnecessary spending brings you closer to financial freedom much faster.
Financial Freedom Isn’t About Earning More—It’s About Redefining What You Need
You don’t need to be a millionaire to be financially free. Instead, you need to clearly define the life you want and eliminate unnecessary financial burdens.
Instead of focusing on how much you should make, start asking:
- What kind of life do I really want?
- What expenses actually add value to my life?
- How can I remove unnecessary financial stress?
Now, take another look at your financial goal. Is that number truly what you need, or is it just a social expectation?
By answering these questions honestly, you’ll find that financial freedom is much closer than you think.
Post a Comment