Financial Independence can help you with all three C’s.

Money is considered a taboo subject in many conversations. Sometimes, people would rather talk about anything else but their personal finances. There is no magic number, and financial independence means something different for each person. I believe having financial independence in your personal life can impact how you manage situations in your professional life. This can be how you navigate your career choices, make decisions, speak up, and stand up for others, especially when it requires professional courage.

What is financial independence and why is it important?

Financial independence is essential because having enough money gives you the freedom to make choices, weather financial storms, and have confidence in your life. It can give you the courage to take risks and try new things. It is surprising how little formal education is available or dedicated to the importance of saving and investing when growing up– even at the university level. During a career, there is a lot of focus on career development, leadership skill development, and communication development, all essential, yet no significant attention to personal finance.

My story about financial independence

My upbringing had limited resources. It was a scarcity mindset. Because money was tight, I quickly became resourceful, earning money from various jobs throughout high school and college. Bill paying was a ceremony of stress at my house, and we often heard, “We cannot afford it”.

After college, I was so excited for my first “real” job. The paycheck was more money than I ever had. I had student loans and credit card debt from when my college jobs didn’t cover expenses. When I started, I wasn’t very interested in the benefits offered. Health insurance? I was healthy! 401K program, what was that? I didn’t want money “taken” from my paycheck when I had credit cards and student loans to pay. Instead of not participating, I opted for a 1% deduction for the 401K out of 15%. I didn’t realize that I was missing out on earning money tax-deferred and an early start to investing. During my first month in the company, there were many forms to sign! I asked my parents about the benefits, but they didn’t know enough to help me. I was too embarrassed to ask my company questions.

“If you are so unhappy, why don’t you just quit?”

Early in my career, I worked with an older colleague who often complained about our company when stressed. I was always respectful, but once I was tired of listening to him and said, “If you are so unhappy, why don’t you just quit?” I shocked him with my response. His eyes got really big, and he shouted, “You don’t have a mortgage, you don’t have a family, you don’t have this… you don’t have that…” and stormed away.

Whew! I was stunned. It was a defining moment. I told myself that whenever I do have those things (mortgage, a family, etc.) I will never feel trapped in a job, will have enough money, will never be scared, and will always be comfortable speaking up.

Immediately, I acted and started to learn more. My 401K contributions were maxed out, and my paycheck dropped significantly. My husband and I adjusted our spending, attended a financial planning night course, and were the youngest in the class. We set an ambitious goal to be financially independent by 50 years old, which seemed like forever away and unrealistic, but we wanted to be ambitious. Our focus shifted to saving and learning about investing. We learned a lot and also made mistakes. The more we learned and worked towards our goal, the more confidence we gained to take risks and help with many life decisions. We kept updating our goals.

How does financial independence impact your confidence?

I’ve seen many people hold back due to job insecurity and a lack of confidence, unwilling to speak up or take risks. Ironically, my career path led me to a global HR leadership role, where I learned the value of saving and investing by then. I encountered many employees who made very good salaries but could not support their current lifestyle, and that stress would come to the workplace. Those prioritizing savings and investment had more confidence and resilience in their careers, handling challenges with greater ease.

It’s never too late to learn and make changes

A recent CNBC survey showed that almost 60% of Americans live paycheck to paycheck. It is always possible to make incremental changes towards financial independence. The earlier you start, the more time you have to create more wealth. There are endless resources about financial planning available, including free online articles, books, and professional financial planners. You can learn at any stage in life with time and the intention to make changes. Here are some basic steps to start.


1. First, understand where you are. Get clarity on your spending and work towards reducing the debt you may have. Set your goals of where you want to be and what financial independence looks like.

2. Live on less than you earn. Make minor or major sacrifices depending on your situation and adjust to achieve your goals. Build an emergency fund worth 3-6 months of expenses as a cushion in case of any surprises.

3. Once you have a more robust financial foundation, you can invest some of your income. No matter how small. Start a retirement account or contribute to an IRA where you can have your money work for you over time.

Financial independence is not a one size fits all

Financial independence is not a one size fits all. Everyone has different situations, backgrounds, and needs, and it is not something that you can make happen quickly. It requires setting a plan that works for you and to work towards. It is constant learning and requires some sacrifice and patience. The outcome is that financial independence contributes to personal confidence, courage, reduced stress, and peace of mind by having more freedom to make choices for you and your family. Money cannot buy you happiness, but it can help you buy more control to be prepared, helping you enjoy life even more.