The Most Important Principle in Personal Finance (It's not "make more money")

Maximize Freedom, Not Just Income

A key principle of personal finance that many of us were never taught is that success isn’t about maximizing the number of dollars in our bank accounts—it’s about maximizing our freedom. This principle can help you cultivate contentment, maintain your health, protect your sanity, and strengthen your relationships.

The Trade-Off Between Money and Freedom

To earn money, you have to sacrifice time, effort, and energy. If you’re constantly chasing a higher income, you inevitably make trade-offs—often at the expense of your physical and mental health. Many high earners work extreme hours, neglect their personal lives, and wake up years later to find their relationships and health in ruins.

Take, for example, an attorney I once worked with. His job was essentially to push papers for credit card companies, sending out threatening letters to customers with outstanding debts. He looked years older than he actually was, limping through the office like a zombie, clearly worn down by stress and dissatisfaction. Despite making an impressive hourly rate, he was trapped—his career forced him into work that didn’t align with his values, and his body was paying the price.

This isn’t just a problem for lawyers. You see it in banking, tech, and countless other industries where people burn themselves out in pursuit of wealth, only to find that they’ve lost their autonomy along the way.

Money Doesn’t Equal Freedom

It doesn’t matter if you’re working a minimum-wage job or making half a million dollars a year—if your lifestyle forces you to work endlessly just to maintain it, you’re not free. Many high-income earners feel just as trapped as those in lower-paying jobs. They work long hours, carry expensive mortgages, and feel compelled to spend just to make up for how miserable they are. And because their employers control their time, they can’t simply walk away.

Nobody is impressed by a well-paid slave. Least of all, you.

The Illusion of Absolute Freedom

When we talk about freedom, it doesn’t mean escaping all responsibilities. Some people imagine an ideal life where they’re completely unencumbered—traveling the world, living without obligations, beholden to no one. But complete detachment from relationships and responsibilities isn’t fulfilling.

Even young children experience joy when they contribute to their family. I’ve seen my own child light up with pride when he completes a task that helps the household. Likewise, my mother, even in her final years, found purpose in small contributions. Our hardwiring as humans pushes us to engage with and support those around us.

True freedom means having the ability to choose how you allocate your time and energy, so you can act in alignment with your values. That might mean earning enough to support your family, taking care of aging parents, or pursuing work that has meaning to you. Freedom isn’t about avoiding responsibility—it’s about having the power to take on the responsibilities that matter.

The Freedom Game

Even if you reject this philosophy and decide to chase as much wealth as possible, remember: there will always be someone richer. If you measure your success in dollars, you will always lose the comparison game.