CHAPTER-7- The chapter "Freedom" in "The Psychology of Money" by Morgan Housel highlights several key lessons about money and freedom:
Raj and Priya were a newly married couple living in New Delhi. Raj has a high-paying job in finance in one of the Top 4 Consulting companies, and as the job requires he often has to spend the late evening and many times weekends in the office but he loves his job very much. Priya, on the other hand, worked as a freelance writer and worked as per the schedule given by publishers or Editors for the assignment, she was satisfied but always keep on looking for more opportunities.
One day, Raj and Priya both attended a seminar by a Productivity Guru. On the way back from the seminar in Gurgaon to their residence in Delhi both had a conversation about what they wanted from life. Raj realized that he valued time more than money and wishes to spend time with Priya and his parents and friends, while Priya valued creative freedom and the ability to work on projects she was passionate about.
They decided to make some changes in their lives. Raj took a pay cut and switched to a job that require fewer hours and had more flexibility, which allowed him to spend more time with Priya and pursue hobbies like playing Guitar and maintaining his health and body, which he had neglected in the past.
Priya started to focus on building her freelance writing business, taking on new clients, and refining her craft where she can add more value.
Over time, Raj and Priya were able to achieve a sense of freedom that they hadn't experienced before. They have traveled to different parts of India together, explored their hobbies and interests, and spent time with their families.
They realized that freedom was not just about having money, but also about understanding what they wanted from life and making intentional choices to achieve those goals.
Raj and Priya also realized that freedom was subjective and personal. For them, it meant having the time and flexibility to pursue their passions and spend time with loved ones. For others, it might mean something completely different. But they were grateful for the sense of freedom they had achieved and knew that it was a result of the discipline and sacrifice they had put in to pursue their goals.
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Let’s define Freedom—“I Can do whatever I want to do, till whatever time I want to do, with Whomsoever I want” this means when one can control one’s life gives a tremendous feeling of well-being.
While earlier generations had more control over their time once you are out of the office, you can forget about work as the next thing will happen the next working day – no phone/mail/laptop/mobile, etc. But, now, our control over time has diminished – we are working almost all the time—I open my eyes and the next thing I open is Gmail and then FB and while commuting to and from work – I am on phone attending emails or reading reports or thinking of my TODO list. So, since today’s generation has less control over their time—there is lower happiness as control over one’s life and time is the key ingredient of happiness.
1. Money can buy freedom, but it's not the only path to it. While having money can provide greater options and flexibility, it's possible to achieve freedom through other means such as minimalism, frugality, or finding work that aligns with one's values.
2. Freedom comes from understanding what you want from life. It's important to take the time to figure out what kind of life you want to lead and what kind of freedoms are most important to you. Only then can you make informed decisions about how to allocate your time, money, and resources.
3. Freedom requires discipline and sacrifice. Whether you're saving money, starting a business, or pursuing a passion, achieving freedom often requires hard work, dedication, and the willingness to forego short-term pleasures in pursuit of long-term goals.
4. Financial independence is a powerful form of freedom. The ability to cover your living expenses with passive income – can provide tremendous peace of mind and flexibility in how you choose to spend your time.
5. Freedom is subjective and personal. What one person considers freedom might not be the same as what another person values. It's important to understand your own priorities and desires and make choices accordingly.
