Be aware of the Asp

by Jeffery A. Keill CFP, CIM, FMA,FCSI

Financial Freedom: oh you wonderful concept of excess and the stressless living. Financial Freedom-an often -touted target the financial industry- likes to proclaim as the highest achievable financial goal. The oasis. The fruitful garden of paradise. Beware the asp lurks behind the green shrubbery and within its cool waters.

Financial freedom is an intuition pump that persuades us that being wealthy is what every person should strive for. It is the finish line. The concept is, as it simply states. to be financially free. This however is a very personal and individual concept. What does financial freedom mean? Is it the same for everyone? Is there a single number or value that secures everyone’s freedom from financial worry? Like the Bare Naked Ladies song says, “If I had a million Dollars”. I am sorry. What? Does that song not mean the same to everyone? What if I already two million dollars? Should the song not be “If I had a billion dollars”? The answer is there  a single value of wealth that satisfies everyone’s needs is definitely and absolutely: no. Although financial freedom and wealth conjure up images of the rich and famous and their champagne wishes and caviar dreams, true financial freedom seldom requires that level of outward expression of wealth. 

There are many misconceptions of wealth in todays world. Since becoming a monetary society not so many generations ago (as compared to agrarian which tends to focus on land, crops, and livestock), we focus on the money-metrics of wealth: income, assets, job and spending patterns. In previous years a person was wealthy when they produced more than was required to survive, thus allowing them to sell excess to acquire other basic needs in life. Today we often find ourselves comparing our situation not against what we need to survive and thrive, but against the blurry backdrop of others around us. Why can’t I have what they have? Did you ever stop and ask yourself-what do they have? Have you ever found yourself measuring their wealth as their job, their car, their house, or their spending? These are at best, horrible measures of wealth. A job today does not secure a future tomorrow without proper choices. A car today is a rust bucket in a field tomorrow. A large house will drain cashflow as it needs upkeep. Lastly, spending habits NEVER achieve wealth. Instead of asking the question of what John does for a living (a dishonorable way to ask how much John makes per year), maybe we should be asking the question: how much is someone saving? Wealth comes from saving and investing, not by spending and consuming. You simply can’t spend your self into financial freedom.

Let’s say you have a good job, you made wise choices, you did not live in excess and built up considerable wealth to the point that society would say you are financially free to live a worriless existence. You have a huge investment portfolio. You can buy wants and not just needs. There are no overdue bills or outstanding debt. You basically have in your hand the proverbial “horn of plenty”. Can this ever be true? Can you ever be rid of financial worry (which, by the way, is the opposite of financial freedom)? 

This achievement of wealth accumulation and so-called Financial Freedom is often never Freedom. Here are four points where the snake lies beneath the bushes:

1. Worry: If you won a great many things, you worry about many great things. You think about losing them through misfortune or mismanagement. By thief or fool. The more you have, the more you concern yourself with worry of loss.

2. Insatiable: Generally, the achievement of wealth is done over a great length of time. It is seldom the lottery winner or the inheritor. These often become short-lived phenomena where individuals will find a path to a former existence. When over 30 or 40 years are spent accumulating wealth for the sake of wealth accumulation, most people can’t just turn off that habit. The trigger, action, and response and habitual wealth creator experiences can not suddenly stop cold-turkey. People that cross that finish line after running a race never stop on the finish line. They slow down, but just can’t stop as they might run another twenty or thirty yards after winning the race. The more you have, the more you want, and many just can’t stop this behavior.

   
   

3. Entanglements: Wealth often creates complexities. Without fail, the more wealth one accumulates the more legal, tax, and family entanglements will ensue. The entanglements will engage more worry, and perpetuate the insatiable attitudes.

   
   

4. Superiority: Although often carrying self-illusion of confidence as ones wealth accumulates, vs the perceived wealth of others, there can develop a superiority. Unfortunately, self-viewed wealth superiority often comes with the destructive attitudes of arrogance and self-righteousness. Fighting this battle can be a monstrous task.

How can we rid the garden of snakes? Consider these thoughts:

• Remember that we do not own anything, but merely are the stewards of wealth that will-by our actions or non actions- ultimately be delivered into the hands of others.

• The one who dies with the most toys is NOT the winner. The winner is still dead. A person who hoards and dies with abundance, dies without financial integrity.

• Wealth is in families and relationships. Concern your investment affairs towards these assets.

• Strive to lift others up. Give and give often. Do so in a way that none, outside your spouse, could ever find out about.

Last Edit Feb 3, 2025