Financial Independence

Not only for my own sake

A while ago I wrote about the joy of financial independence. I outlined the strategies that I have used for over three decades. (I included a short version below.)

1. I have a budget to know exactly what I earn, spend, and invest.
2. I live below my means, on 50% of my net income or less.
3. I spend money only on what I need and love and don’t waste money is mindlessly.
4. I have cheap hobbies, such as reading and writing. I have frugal friends who also like to save and invest rather than spend their money. We all like to be generous, though, and give to causes we believe in.
5. I hold on to things and maintain them, such as my 18-year-old car (and the washer/dryer of the same age), my 31-year old HVAC system, and the 10-year old laptop I am typing this on.
6. I stay away from debt and buy only what I can afford.
7. I bought an affordable house and payed it off in seven years and six months.

I used to focus on these strategies in terms of my personal goal of financial independence. I also shared the strategies with others so that they could become financially independent sooner. Recently, however, financial independence is becoming almost political.

A friend posted on Facebook that the higher gas prices were crimping her lifestyle, but that this was nothing compared to what people in Ukraine were going through right now.

Yes, prices are increasing for gas, for food, for almost anything. The current inflation rate is at 7.5% and may increase even more. If we do without Russian oil and gas, budgets may get even tighter.

However, people who are financially independent and already live way below their means can deal with these price increases. We have the means to pay the higher prices and the inclination of becoming even more frugal when necessary. We can go without to show solidarity and if that means this crazy war will end sooner.

We have the fully funded emergency fund to dip into and the means to help family and friends. We can be generous.

The war on Ukraine is also a war against democracy. More and more countries are ruled by autocrats and dictators, and we need to do what we can to preserve our liberty everywhere we can. We can fight dictators now with government sanctions and individual actions. People book Airbnb’s in Ukraine without any intention of staying there, just to send money where it’s desperately needed.

I don’t have an account but a friend of mine does. He “rented” several apartments in Kyiv. There are quite a few GoFundMe verified fundraising campaigns as well, such as the Ukraine Humanitarian Fund I contributed to. It may not be much individually, but if we all do what we can, it will make a difference.

Being frugal and living below our means is now more important than ever. It allows us to tolerate higher prices and to help at least in a small way — along with thousands of others who join us.