Our society functions in a way it’s almost impossible for us to completely avoid money.
We spend far too much time and energy in life thinking about money and also working for it.
Money is a source of stress and unhappiness. So people often call it as a necessary evil.
Money Helps Exchange of Goods and Services Better
Money helps to complete such exchanges.
But working for money isn’t about money – it never has been. Money on its own is just a fancy paper or digital figures.
You learned it in new money creation and the fractional-reserve banking system.
This is the paradox of working for money. You cannot eat money when you are hungry.
However, it can get something to eat when you are hungry or something to drink when you are thirsty.
So, money is for your basic survival needs or better yet to make your life bit more comfortable.
This means you must master money not only because it’s the base of all human needs, but also helps people get the freedom.
Money Must Give You Freedom. What Does it Mean?
Humans want money not because it’s money but because what money can do for them.
Money is able to do many things.
However, among all these freedom over time, location, debts etc is the most important thing money can provide.
The whole idea of freedom is conquering our fears. We can conquer not all but most of the fears when we have money.
Sometimes not having to think of money when we don’t want to itself is the greatest freedom.
This also means you have other choices you can pick the best – the one that reflects your true values and principles.
Freedom of Your own Time
I must wake up at morning 7 every day and get to office by 9. I must be in office until 5p.m doing things that I don’t enjoy doing most of the times.
If I have a choice, I would love to wake up late, be with my families, and do things I enjoy – something like blogging.
I want an ability to control my schedules.
Unfortunately, I don’t have a choice. I need money for rental, commutes, groceries, parents, kids etc. Blogging certainly won’t pay my bills.
But if I have enough money, I will be blogging even if it doesn’t give me a cent. This proves I don’t have a freedom of time.
Freedom of time is important for humans. Prisoners are stripped off this freedom. So, sending a criminal to jail is one of the highest forms of punishment.
If you are convicted of a crime but have money, you can afford hiring the best lawyer to fight your case. This is what bails are for.
Imagine this situation if a convict is someone with no money – someone who is struggling with basic needs.
Freedom Over Your Needs
In Maslow’s hierarchy of human needs, money is almost everything at its bottom two levels.
You need money for almost all physiological needs – like shelter, clothes, and foods.
The next need in line is safety. Though money cannot make 100% safe, it enhances security for your bodies, families, properties etc.
The safety needs together with physiological needs form basic needs of human beings.
If you work for money even to meet these basic needs, you’re basically a slave to your needs.
It’ll be hard to move upward for seeking other needs – like self-esteem or self-actualization.
People in poverty usually have lower self-esteem, confidence, and social networks. If boobs job will build my confidence and self-esteem, there is no way I can do if I struggle even with my basic needs.
Freedom Over Your Morals
I feel when a rich person is bad, he is bad. But when a poor person is bad, most likely he is being forced by a situation.
Though this is debatable, poor people won’t be bad if they have money to meet their basic needs.
Most of the prostitutes, kidnappers, bounty killers etc are poor people. If they have better ways of getting money, they won’t do those things. No prostitute would sell her body just for fun.
If rich wants to be good, they can afford to be one. Goop Sonam Drukpa can be a good person giving Nu.50,000 each to earthquake survivors.
Someone like me who is battling even for basic needs cannot afford to do it. Does it mean I am not helpful or generous?
In the Korean movie Parasite, I find it relatable when Choong-sook says about the rich landlord lady:
She is nice because she is rich. If I had all this money, I’d be nice too.
If you have money, you can afford to be helpful, generous or free animals from slaughter houses.
You can join some NGOs and do charitable activities. Though such thing can be done even now, it’s difficult when money isn’t optional.
Freedom From Debts
Debt is borrowing other people’s money. The moment you take the debt, it comes with an obligation or responsibility to pay it back. Responsibilities and obligations will make you less free.
I am not 100% against debt like Dave Ramsey. If you know its rules, debt helps you take leverage and calculative risk.
But over leveraging is also risky. Learned from NetFlix documentary Bad Boy Billionaires: India.
Better to avoid debt if it’s for personal use. Keep an emergency fund for contingencies. Poor people take a debt without choice and become its slaves.
Rich people don’t need to take debts and they avoid interest cost. It will cost you more. Vimes Boot Theory is real.
Freedom Over Location
You need job for money – it is either your job or Bumthang. In this case you don’t have the freedom of location.
People with money don’t live in one place unless they really like to. They do business in different places.
You can also take benefits of geographical arbitrage. If living in Bangkok or Bali is cheaper, you can move to these places.
FI/RE community people build wealth early on for the freedom of time and freedom of location.
Money and Freedom – Personal Conclusion
It’s not about the luxuries the money can bring, but it’s about the freedom from worrying about money and focusing on other things that make us happy.
It shouldn’t go on forever with your limited time. If Maldives beaches will make you happy, you’ll never be there if you’re only after more money.
Money works like water cycle. Just like water, money also belongs to no one forever within the cycle.
When you have money it’s just like clouds holding water.
It means when you have money, you are responsible to spend it wisely. If you don’t have, it’s your obligation to earn. Who would love former over latter though?
To strike the balance, you must learn money lessons. Money as we know is like any other tools and it’ll never be as bad as you want it to be.
What is the ultimate importance of money for you? Is it good to work for more money? Share in the comment.
