Why is the pursuit of financial independence important for the society?

Financial independence has obvious advantages for the pursuer once achieved, but what would be the impact on society and country as a whole? What would be the impact on society where all individuals pursued financial independence? The good news is that there is a lot of positive impact on society and the economy for such a pursuit.



 

Society gets things it wouldn't have received otherwise

The pursuit of financial independence involves earning more than a traditional career path would have allowed the individual. This means the pursuer would need to create additional value for the society which it wouldn't have been able to receive otherwise. Meaning side hustles, advancing in existing career faster, starting a business etc. Society would subsequently reward the pursuer with money for the value that the pursuer has created. More goods and service are created that adds value to the society

 

Society gets a confident and driven individual

Upon achieving financial independence, the most common feeling that emerges in such individuals is one of mental peace and confidence. This feeling gives a strong foundation for the pursuer to take on more meaningful work that impacts society in a much a more positive way. They can also engage in more creative pursuits which may lead to a more satisfied individual.

 

Positive impact on society

Depending on the individual's tenacity they may take on work which may pay less but have a higher impact on society. e.g Joining an NGO for a lower pay but having a higher impact on society. Even if not inclined to join an NGO, donations would increase. Charities and NGOs would receive better funding to do more impactful work.

 

Economy improves

Firstpost reports that while household debt drives demand in the short term, it leads to a negative impact on growth in the long term. Debt is an artificial way to drive up demand and doesn't sustainably grow the economy. As more people get out of debt by producing more goods and services more money is available to invest. This, when invested prudently, can produce more goods and services, this way the economy can grow more sustainably.

 

Wealth disparity decreases

Sevenpillars has a great article that details out the disadvantages of income inequality. This has significant repercussions on health, education, politics and so on. While some inequality promotes growth as it promotes risk-taking, high levels of income inequality have an adverse impact on society. The pursuit of financial independence could help bridge the income/wealth gap.

 

Spending increases creating more jobs

Individuals that become financially independent are more likely to spend more either to consume goods and services. They might buy bigger cars, nicer vacations, more luxurious houses. This creates demand and in return results in more jobs being created driving up employment in our country

 

 What are your thoughts on the matter? Do share in the comments below


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