Why does PanzerGrenadier want Financial Freedom?

Those of you reading my blog for the first time may be wondering.... Why is this PanzerGrenadier chap so obssessed about clearing his loan early and planning for financial freedom. Why shouldn't he be focussing on his work, earn money and just consume and be happy?

Retrenchment without benefits - up close and personal
The reason why I pursue this journey towards financial freedom is that I have encountered during a stint of my working career a case where two people I knew in their late 30s and early 40s were asked to go from the organisation because of headcount reduction and not because of performance. They had families and they were asked to go because the organisation's profit margins was not generating sufficient return on investment/equity to satisfy the owners of the organisation. Hence, despite generating larger profits, margins were down and management was tasked by the owners to embark on cost-cutting measures while maintaining revenue.

One of the easiest and fastest ways to do so was to shed staff in cost-centres since these people contributed to the bottom line by being an expense and didn't help much in the topline (revenue).

When your job evaporates, so does your confidence and perhaps your world as you know it
Losing your job due to restructuring affects your self confidence significantly. Even though on paper you were not released due to poor performance, at the back of your mind you would be thinking of why was I chosen instead of Mr. B or C? Why did I have to be the one "sacrificed". etc.. Such negative thoughts are not easy to suppress when your rice bowl lays shattered in shards by the organisation.

Why me? Why now? Now what?

The fear of uncertainty is what drives many people to depression and hopelessness. While losing your job is not a life and death issue, it is a very serious issue when you are older, have dependants to support and have housing and other debt to service.

My obsession and at times paranoia about financial freedom is because I've seen people being put under such situations. While they put on a brave front, it was scary when I talked to one of them on a face-to-face basis over coffee in the office cafeteria. I saw the unspoken fear, uncertainty beyond the words and phrases uttered during the conversation.

Why I delayed buying a car since I first started working
Whenever I looked at a car, I thought of what the $50k-$70k could do at a return of 3-5% do for you if you have invested that amount. Whenever I received my bonus, I kept thinking of the bank who basically was my ultimate employer since I worked to pay off my mortgage instalment every month without fail.

These were the thoughts that kept me to my approach to paying off my home mortgage at an aggressive pace and to eschew conspicuous consumption. After working for a decade plus some years, I have managed to fire my banker! Now I am only left with a small car loan as I will be getting my car soon before Chinese New Year. This is perhaps the only big ticket item I have bought besides my home as well as the furnishings and furniture when I got my own place.


The final analysis
The security and stability of your job is for you to assess. For me, I realise that I cannot depend on employers forever and some day, I have to strike out on my own in the areas I have some skills and expertise. In addition, with the current CPF system, my retirement age is really up to me to determine because if I were to let the CPF dictate when I can retire, then it is at 67 or later. I wouldn't want to HAVE to work until 67. I would WANT to work if my health was good and I enjoyed the work that I was doing then.

Your motivation for financial freedom lies within your heart.

Be well and prosper.