Why Financial Flexibility is the Next Best Thing to Financial Independence
I’ve been quiet on the blog because I’ve been uninspired, feeling like I have very little to say about money that I haven’t already said. And I’ve been preoccupied with lots of other things that, to be honest, have made personal finance seem like a trite and irrelevant topic. Of course, I can only say that because we’ve achieved a good measure of financial flexibility. And so I guess that means personal finance is very relevant—what a blessing and privilege not to be worrying about money in the midst of so much else going on.
What’s been going on? Our closest friends and neighbors moved. I got pregnant, and that of course comes with symptoms, appointments, and preparations. My family of origin is going through some challenges. We’re busy with regular life–work, kids, volunteer ministry, continuing ed, etc. Plus our bathroom remodeling goal has gone from “probably should” to “high priority” after we discovered the subfloor was water damaged.
Financial flexibility is an accounting term that describes “a company’s ability to react to unexpected expenses and investment opportunities.” We find this concept useful for personal finance as well. What options would open up if you could live on half your current income? How easily could you weather a job loss or unexpected illness? Could you say “yes” to travel, moving, or giving opportunities that come along? In other words, can you touch your financial toes?
Financial flexibility has afforded us the privilege of not thinking much about money during this less than low-key season. We can complete a DIY (with help) bathroom remodel without going into debt. I’ve been able to take care of myself instead of stressing about side hustling to make our financial plans work. We can weather the extra expenses of adding to our family. And our systems of auto-withdrawal for giving and investing can mostly steer our financial goals during a time when we’re not devoting much thought to money.
Our deeply ingrained “frugal” habits also allow us to just continue on autopilot. I suppose it would be easy to start ordering more take-out, shopping for stress relief, or spending more on conveniences or entertainment for our kids. We’ve certainly increased our expenses a bit to accommodate our growing family, but overall our lifestyle remains similar in the day-to-day. And it’s not through some super-human effort, but the sheer power of habit.
We’re far from financial independence–and totally content with that. We’ll get there when we get there, and we won’t sacrifice our values or purpose for it at all. I’ll be home with the little ones, Neil will be turning down work that would take him away from family and friends too much, and we’ll continue devoting nights and weekends to fellowship and volunteering rather than paid side gigs.
Everyone’s got their things that they’re willing to spend on, and those they aren’t. Our are just examples. The key is trying to sort out what’s really worth it to you, and limiting that list. Because everything doesn’t have to be your favorite.
If you’re still nowhere near FI, take heart: financial flexibility is a continuum you can make constant progress along. And as you do, you’ll experience real, growing benefits even while you’re still very tied to the day job. Our decisions have become less and less influenced by money, and increasingly tied to our values and purpose. We can say yes more and more. Another mission trip to India? Sure. Another baby? Yes. Home upgrades as needed? Fine. Sponsor another child in need? Absolutely.
And that feels like freedom in many ways.
What the next step along your financial flexibility continuum? What benefits have you experienced from growing financially?