The Covid-19 Pandemic has ringed the alarm bell of people's finances. It actually destroys a lot of people's livelihood.
Take a look at Warren Buffett's famous quote: "It's only when the tide goes out that you discover who's been swimming naked."
A black swan event like the outbreak of the current coronavirus epidemic actually brings along with the moment of truth - whether you are well prepared financially for crises or not. The world is simply a jungle and the market is the punishment. If you failed to take care of your personal finance, you will finally be punished by the market.
In fact, no matter a black swan event happens or not, a lot of people have an issue with money. The most deeply rooted disbelief among the general public is that money is the “root of all evil” and the older generation may try to avoid discussing it among family members. In the past, feudalism shaped the general culture that landlords & noblemen are often antagonists and say Robin Hood, who steals from the rich and gives to the poor, is the protagonist. That’s such a fallacy.
Money, used as the medium of exchange of goods and services, is actually only a tool. The love of money is in fact the "root of all evil" instead of money itself.
To achieve financial freedom, one must make it clear of his/her "Purpose". The real joy in life comes from finding your true purpose and aligning it with what you do every single day, which you will devote all your heart and soul in achieving the ultimate "Purpose" - your "Goal".
There are numerous reasons and purposes which you may want to be financially free, to name a few for example:
- Security: to be able to go to bed and sleep tight knowing that you no longer need a 9-to-5 job to keep surviving;
- Significance: to simply show off your wealth to others and gain personal attention;
- Quality of Life: to improve your standard of living. You’re able to live where you want to live and have a better house. You may have the chance to dine in fancy restaurants. If you have kids, they have access to better schools And you can enjoy little perks, like flying business-class instead of economy-class;
- Personal Growth: to challenge yourself, improving yourself and to achieve the goal of not working for money. You're no longer a servant of money but become the master!
- Contribute to Society: when you've become the "master" of money, actually you may be the "servant" of the society! Think about the people you want to serve. You can’t help them if you are personally a poor person. If you want to create change in the world, you can be a force for good through your economic contributions as well as your time.
I reckon "Security" is the most important purpose for general public. This is especially true during the current tough times, where a lot of people lose their jobs and start panicking. Being financially free can at least be safe or be more resilient during the time of financial turmoils.
Going up a level, for a lot of high achievers, attaining possessions is not their only goal. Earning money itself is not their purpose. Their life is not impressed by how much money in their bank accounts but, rather, by the real change and contribution they brought to the society. Money is just the by-product along their quest. If we always focus merely on the Significance of what money can brings us, we will fail getting to financial freedom. The love of money and greed will possess you in mid-way.
The places where money can take us, the freedom, the time and opportunity money can bring us, these are what we should be really after.
So guys, stay clear of the purpose, keep motivated and enjoy the ride!