Starting the Path to Financial Independence one

Hello everyone! In the previous episode about book reading experiences, I mentioned that if I could go back in time, I would wish someone had shared such valuable experiences with me earlier. Reflecting on that, I came up with the idea of creating a series of things I wish my younger self had known. The first topic that immediately came to mind is financial freedom, which I will discuss with you today.

Initially, I intended to cover this topic in a single episode. However, after outlining it, I realized it was impossible to condense everything into one episode due to the vastness of the subject. If I tried to keep it short, I wouldn’t be able to convey all the points I wanted to share. Therefore, the best approach is to break it down into smaller episodes. Today’s episode will focus on why we should care about managing personal finances and how financial freedom can bring positive changes to our lives.

In this initial episode, I will help you gain an overview of financial freedom. Before starting any project, I always try to answer three questions: What is it? Why should I do it? And how can I do it effectively? The "how" is often a long journey that requires a lot of effort, which is why I place significant importance on the first two questions. If I don't, I risk wasting my time and energy.

In the context of financial freedom, answering these two questions is even more crucial because this journey is long and usually takes around ten years, sometimes longer. It requires continuous effort and dedication. Understanding why you embark on this journey and preparing mentally for the challenges you’ll face are vital for staying motivated and not giving up halfway through.

I recorded this episode three times to get it just right because I am passionate about this topic and genuinely want to inspire you. I hope my sharing will help you save time and avoid the mistakes I made. If I can inspire even one person through this series, I will consider it a success.

So, let's dive into the main topic, starting with the question: What is financial freedom? As we discuss finances today, we will focus solely on this aspect, although other important aspects of life exist. I want to emphasize that financial freedom is not about being rich but about having the freedom to make choices without being constrained by money.

About ten years ago, when I first understood these concepts, it was like a wake-up call for me. I had gone through phases where I spent everything I earned, never saving or accumulating wealth. Learning about financial freedom felt like discovering a new world. I noticed young people abroad starting this journey early, some at 19 or 20, just out of school. I envied them because they found it so early, whereas I discovered it later but was still grateful it wasn't too late.

To make it clearer, there is an English saying I think perfectly reflects the journey to financial freedom: "Live a few years of your life like most people won’t, so you can spend the rest of your life like most people can’t." It means dedicating about ten years to living differently from your peers to reach a point where you can live your remaining life with more freedom.

The exact timeframe can vary depending on individual circumstances. It’s not about living miserably for ten years; it’s about living smartly. Many people think achieving financial freedom means depriving themselves of everything, which is not true. Even while on this journey, you can live a quality life, just in a more mindful and controlled manner.

For young people, an example of financial freedom is the ability to leave a job you don't like. Often, people advise following your passion, but the reality is, it's not that simple. Quitting a job to pursue a new field requires financial stability, especially during the transition period when income might be low.

Financial freedom gives you the power to make choices without being constrained by money. It allows you to do what you love without worrying about the financial return. Conversely, it also gives you the option to quit a job you dislike, which is a luxury not everyone has.

Achieving financial freedom also opens up the possibility of living anywhere you want, not being tied to a specific location for work. It provides the freedom to move to places that make you happier.

The essence of financial freedom is not about wealth but about freedom. Many people mistake financial freedom for being wealthy, but it’s about having control over your time and choices. True wealth is having the freedom to live your life on your terms.

How do we achieve financial freedom? First, it's not as daunting as it seems. Many think they need millions to be financially free, but that’s not the case. In this series, I will guide you on how to calculate your financial freedom number and show that the journey itself is rewarding.

Looking around, I see many young people in Vietnam lacking understanding in this area, which leads to poor financial management. This isn’t entirely their fault; it’s partly due to a mindset that devalues financial planning and sees it as overly materialistic. However, proper financial management leads to smarter spending and less financial stress, improving overall quality of life.

By changing how we view money and financial management, we can avoid common pitfalls like living paycheck to paycheck and falling into debt. Understanding and controlling our finances gives us the freedom to make better choices and live more fulfilling lives.

In the next episodes, I will delve deeper into practical steps for achieving financial freedom. I hope this series inspires you and helps you understand the importance of managing your finances. Thank you for listening, and see you in the next episode!