Financial independence vs. financial freedom
09.10.2017
Have you ever tried not to think about something? Let’s do a quick experiment—don’t think about a balloon right now. Did it work? If you’re like most people, the image of a balloon popped into your mind instantly. Why does this happen? It’s because the human brain doesn’t process negatives like “don’t” or “not” as we think it does. Instead, it focuses on the core idea—in this case, the balloon.
This phenomenon highlights a fascinating truth about how our minds work. Our thoughts aren’t just words; they’re images, feelings, and stories. This principle extends far beyond simple experiments—it shapes how we see ourselves, our goals, and even our financial futures.
When we think about financial independence, for instance, many of us immediately picture struggle. The word itself often conjures an image of breaking free from reliance on something or someone—a state of perpetual effort. This imagery is no coincidence. Our collective history, societal structures, and personal experiences have deeply ingrained this association.
Let’s take a closer look at why this happens, how it impacts our financial decisions, and what steps we can take to redefine our relationship with money.
The Roots of Financial Dependence
Financial dependence is a cycle that often begins outside ourselves, rooted in the systems we live within. Governments, for instance, provide safety nets like pensions, social assistance, and subsidies. While these resources are vital for many, they can also create an unintentional side effect: a mindset of reliance.
Over time, this reliance can foster frustration. People begin to blame institutions for limiting their autonomy, accusing them of disrespecting individuality or ignoring basic rights. Yet, this dependence isn’t just about external systems—it’s mirrored in our personal lives, too.
Before we can achieve financial independence, it’s crucial to understand what keeps us dependent. For some, it’s a lack of resources or knowledge. For others, it’s fear—fear of risk, failure, or change. Whatever the cause, recognizing these roots is the first step toward breaking free.
What Does Financial Freedom Really Mean?
True financial freedom isn’t about amassing endless wealth. It’s about having choices. Freedom means having the ability to explore opportunities, take risks, and make decisions that align with your values—all without being shackled by financial limitations.
But here’s the paradox: freedom can be terrifying. Philosopher Søren Kierkegaard described it best when he said, “Anxiety is the dizziness of freedom.” Many people fear freedom because it comes with responsibility. It requires making decisions, facing potential failure, and owning the consequences of those choices.
This fear often keeps us stuck in a cycle of dependency, even when we aspire to something greater. To break this cycle, we must redefine freedom—not as something to fear but as a state of empowerment.
Victim vs. Creator: Two Mindsets, Two Outcomes
The psychology of financial dependency can be explained through the Karpman Drama Triangle, a model that identifies three roles people often play in dependent relationships: the Victim, the Persecutor, and the Rescuer.
Financially dependent individuals often fall into the Victim role, characterized by blame, excuses, and complaints. Here are three telltale signs:
- Blame
Victims often hold others responsible for their financial situation. They blame parents, governments, or circumstances like the economy or politics. - Excuses
These are myths people tell themselves, such as “Money isn’t important” or “Money corrupts people.” These beliefs serve as barriers to change. - Complaints
Constant complaining focuses attention on problems rather than solutions. It creates a self-fulfilling cycle of negativity, drawing more challenges into their lives.
On the other hand, financially free individuals adopt a creator mindset. They see themselves as the architects of their lives, taking responsibility for their outcomes and actively seeking solutions to challenges.
Breaking Free: Steps Toward Financial Independence
So, how can you shift from dependence to empowerment? Here are some actionable steps:
- Take Responsibility
Start by acknowledging that your current financial situation reflects your past choices. While this may feel uncomfortable, it’s a necessary step toward reclaiming control. - Reframe Choices
Instead of thinking in terms of “either-or,” start thinking in terms of “both-and.” For instance, don’t choose between a vacation or home improvements—plan for both. This mindset opens up possibilities and encourages creative problem-solving. - Challenge Limiting Beliefs
Pay attention to negative thoughts like “I can’t afford this” or “This isn’t possible for me.” Replace them with questions like, “What opportunities does this challenge present?” - Invest in Yourself
Education and personal development are among the most valuable investments you can make. Whether it’s through formal courses, mentorship, or self-study, the knowledge you gain will pay dividends in your life.
The Role of Gratitude and Giving
Money isn’t just a means of exchange—it’s a reflection of value, gratitude, and growth. To succeed financially, it’s essential to cultivate a mindset of mutual benefit. Charge fairly for your work, appreciate the value others bring, and use money as a tool for motivation and development.
Even in therapy, this principle applies. Charging for services creates a balanced, respectful relationship between therapist and client. Similarly, in other fields, fair compensation fosters trust, accountability, and mutual enrichment.
Unlocking the Power of Opportunity
A key difference between financially free and dependent individuals lies in how they approach opportunities. Dependent individuals often focus on obstacles, while creators focus on possibilities.
For example, imagine someone saying, “I can’t afford to invest in my education.” A creator would instead ask, “How can I afford this? What steps can I take to make it happen?” Over time, this shift in mindset creates a ripple effect, opening doors to new possibilities and growth.
Embracing Freedom: A Journey, Not a Destination
Financial freedom is not a fixed state—it’s a journey of self-discovery, growth, and continuous improvement. It’s about recognizing your needs, overcoming challenges, and aligning your actions with your values.
As Aeschylus wisely observed, “A wise person knows the right things, not many things.” By focusing on what truly matters, you can create a life that reflects the best version of yourself—a life of abundance, purpose, and freedom.
So, take the first step today. Embrace the challenges, celebrate your progress, and dare to dream big. Financial freedom isn’t just about money—it’s about unlocking the full potential of your life.