23. IS YOUR LIFE ALL ABOUT WORK?
“Money can't buy you happiness. Time can.” -- Anonymous
I have shared earlier in this book that according to a quantitative research conducted by ManpowerGroup in 2016 titled “Millennial Careers: 2020 Vision”, globally sixty percent of millennials expect to work past the age of 65, with some until the day they die.
Out of which, thirty-three percent (33%) of them expect to retire at the age of 65-69. Fifteen-percent (15%) expect to retire at the age of 70 older. Surprisingly, twelve-percent (12%) of them say it's unlikely they will ever retire.
Assuming you work until the age of 60 as per Malaysia's official retirement age, you will be spending thirty five (35) to forty years (40) of your one-and-only precious life working.
If you live until 80 years old, that means you probably spend 25% (22 years) of your life growing up, studying and obtaining your educational degree.
You then spend another 50% (40 years) of your life spending 8-12 hours every day in the office and daily commute.
What's left will be 25% of your precious life at age 60, when your body is starting to show symptoms of ageing and slowing down with potentially some health problems.
But what if our life is cut short?
With so many uncertainties in this world, anything can happen.
Let's take a look at some statistics. The deadly Covid-19 pandemic has swept across the world with more than 700,000 deaths globally as of early August in 2020. Malaysia’s road accidents, being the third highest in Asia after Thailand and South Africa, kill 7,000 to 8,000 people in the country every year. Coronary heart disease is Malaysia’s number one killer, with 50 people dying from the health condition daily. In 2018 alone, 18,267 Malaysians died of coronary heart disease. An ex-colleague was a typical example who unfortunately passed away due to a full-blown heart attack at the age of 49 in early 2019.
Is life all about work?
You have been working so hard to make money in your career for so many years. If you follow the typical life journey and life expectancy of most people, you will be spending thirty five to forty years of your life in a job.
Have you ever taken the time to ponder upon why you spend 50% of your life working?
What is it that you are looking for after all?
Working hard for the money? Is that it?
Or is there something else you are chasing after?
Money isn't everything. However, without money, many things are becoming impossibilities.
If there is not enough money to put food on the table for family at home, it will definitely create a lot of stress and tension. Basic needs become a struggle. Head of the house and the wife may need to work to ensure they have enough money to support their family. When they start to make money, they definitely feel much better and happier because it helps to improve the family’s financial condition.
How about you? Do year-end bonus by generous employer, annual salary increment, job promotion, and higher salary at your new job make you a happy soul? I believe for most of you working as employees, these are the great happy moments.
Are you happier as you have more money?
Let's say that if you make RM2,500 a month and your happiness level is 25%. Few years later you make RM5,000 a month and your happiness level jumps to 50%. One day you receive your big promotion with your pay jumping to RM10,000 a month. Your happiness level also follows your salary increment jumping to 100%. Do you think by the time you make RM20,000 a month, your happiness level will be at 200%?
Initially when you start to make more money, you will definitely become happier. But it doesn't mean that the more money you make, the happier you become.
Yes, you will still be happier with higher salaries, higher income. But perhaps your happiness level will not be increasing in direct proportion to how much you make.
Reaching self-actualisation stage
Studies show that the happiness curve will be flat after reaching a certain income threshold. Why? Once you reach a certain income threshold, you probably have all your needs taken care of. You don't have to worry that you can't afford to pay your bills. You don't have to worry that you can't afford to put food on table or go out for nice meals. You don't have to worry that you can't afford to see doctors should you fall sick. You have a car that brings you and family around. You have a beautiful home with your housing loan fully settled. You have enough money to travel during school holidays and during your annual leave. You also have your children's education fund all sorted out. You don't have the urgency to have more money.
Basically, you have reached a stage in life that all of your basic needs are already well taken care of. According to Maslow ‘s hierarchy of needs, you are probably at the highest level: “Self-actualization”.
Self-actualization needs actually refer to “the realization of a person’s potential, self-fulfilment, seeking personal growth and peak experiences.” Maslow describes this level as “the desire to accomplish everything that one can, to become the most that one can be.”
One individual may have a strong desire to become an ideal parent. In another, the desire may be expressed economically, academically, or athletically. For others, it may be expressed creatively, in paintings, in pictures, or inventions.
For better understanding of the five-stage model of Maslow’s hierarchy of needs, you may refer to the chart below:
Once you reach self-actualisation stage, even if you have even more money from your work, saving and investment, that extra money can probably only buy you short-lived happiness.
For instance, instead of driving a Toyota Vios, you can now drive a Ferrari. Instead of staying in an apartment, you can now stay in a mansion within a gated community with full privacy and 5-star facilities. Instead of traveling in economy class, you can now travel in business class in all of your overseas trips. Instead of staying in a three-star or four-star hotel, you can now stay in luxury resorts. Instead of carrying a Nike sling bag, you can now carry a Hermes handbag. Instead of wearing clothes from H&M or Uniqlo, you can now wear limited editions of Armani, D&G, etc. Instead of eating at cafes, you can now eat at fine dining restaurants catered for the rich and famous.
But does that buy you inner happiness?
Facebook's founder Mark Zuckerberg once said, "Richness may not buy you happiness. It can only provide you more comfort".
You drive your Ferrari instead of Toyota Vios from Kuala Lumpur to Penang. The distance is the same and time taken to reach Penang is likely to be the same too due to speed limit on North-South Highway. Does that buy you inner happiness? Or is it only for more comfort for the driving journey?
You sit in business class instead of economy class in your flight from Malaysia to Singapore. Does that buy you inner happiness? Or is it only for more comfort for that forty-five minute flight?
You stay in luxury five-star resort instead of three-star hotel with wide-spread of free breakfast. Does that buy you inner happiness? Or is it only for more comfort? Afterall, you may end up eating only a couple slices of bread, with some salad and a cup of cappuccino for your breakfast because you have health problem. You may be out whole day sightseeing and only come back to sleep on that high quality bed.
You stay in a mansion instead of an apartment with a few domestic helpers. Does that buy you inner happiness? Or is it only for more comfort? After all, you are out most of the times working hard for money and when you go home, you only need a nice bed to sleep in.
You wear D&G brand instead of Uniqlo brand to functions and wedding dinner. Does that buy you inner happiness? Or it only for more comfort? Afterall, Uniqlo can look as good and as comfortable as D&G, minus the price tag.
And let’s talk about everyone’s favourite: food.
No matter how much money you have, you can only eat three meals a day. Nowadays, due to hectic lifestyle and poor diet living in this stressful world, many people tend to develop high blood pressure, high cholesterol and diabetics as they grow older. Hence, as you and I grow older, we tend not to eat too much of all the "good food" for health reasons as well. Instead, you may opt for healthy food- more vegetables and fruits instead of red meat; brown rice over white processed rice; steamed fish instead of sirloin beef steak. Meanwhile, your body metabolism rate will slow down with age. You will tend to eat less too as you grow older in order to maintain your weight and good health. Therefore, even if you eat abalone, snow crab, tiger prawns, Kobe beef, sirloin steak every day in fine restaurants, you will get sick of it. You will not be happy. You will lose your health. Perhaps you will realise that cheaper but healthier vegetables and simple cooking bring you more happiness.
To sum it up, I just love what my 96 year-old dad says, "When a person grows old, his/her mobility is limited. He/she can't climb up the stairs. By then, no matter how many stories or how big the house is, ultimately, one just needs a bed to sleep in. Even if the bed is made of gold, what difference does it make to sleep in a bed made of gold or wood when you are old? In fact, a bed made of wood is even more comfortable than a bed made of gold. ”
Inner happiness does not come from the material things of this world
As you can see, without you knowing it, you are not really getting happier with more money, you are just using the money to make you feel more comfortable with your living. You are moving from needs to wants.
Perhaps this is one of the reasons why some people keep buying more and more material things, keep indulging in more and expensive experiences in order to search for true inner happiness.
All of these so-called "luxuries", "excess" or "wants" may provide you more comfort and give you temporary boosted happiness. However, after a few months of indulgence in such luxuries and comfort, you probably will quickly get accustomed to it.
Your short-lived boosted happiness sooner or later will drop back to its original happiness level. You will realize one day that your true inner happiness does not come from the material things of this world.
Inner happiness can be very simple
How many of you love to kick back, relax, and lie down on a bench under a beach umbrella in Bali or Phuket, enjoying the sea breeze, sipping fresh coconut juice, dipping in the crystal blue water, watching one of the most beautiful sunsets in the world? Does the thought of it makes you happy?
How about sitting down on a roadside in downtown Bangkok eating your favourite papaya salad with the authentic Thai noodle soup and Thai milk tea called Cha-yarn with some good friends? Does the thought of it makes you happy?
I’m sure such thoughts make most of you happy. The best part of all - these experiences which make you happy don't cost you much money.
Eric Yuan, the founder and CEO of Zoom, who made nearly USD $ 4 billion in 3 months (January to March 2020) as usage of his video conferencing software skyrocketed amid the coronavirus pandemic, says that his newfound wealth doesn't particularly excite him.
He said, "If I was 25, may be I would be very excited." Eric Yuan told The Telegraph about his newfound wealth. "But those things don't have any impact on me. Money is not going to bring me happiness."
At age 49, Eric Yuan told The Telegraph that he is more excited by the possibility of convincing more people, especially millennials to embrace remote work.
Personally, I believe Eric Yuan has reached self-actualisation stage in Maslow’s hierarchy of needs. He knows exactly what brings him true happiness. And it’s definitely not the material things of this world.
Reason for achieving financial independence and retiring early
Excelling in your career is important. Working hard for money is important. Saving your hard-earned money is important. Investing your money for the leveraging effect is important. It allows you to have enough money
But once you reach the arbitrary state of "enough money" depending on your own needs and reasonable wants for your financial independence, you shall realise that additional time and effort spent in making additional money beyond your "magic number" is simply unnecessary.
If you don't think consciously enough, you may continue to slog yourself at work.
You may end up working for your children, leaving them a pile of money or properties as inheritance. You may end up exchanging your youth and years of precious time to live your life by being a slave to your children.
Remember, whatever in the bank stays in the bank. It's not yours unless you spend or use it. Anything not spent will be passed on to your children as inheritance.
You can't bring your money with you when you die. We all live only once. Don't you want your children to be independent? Don't you want to live your life for yourself too?
Hence, once you make enough money to sustain your living for the rest of your life, you have bought yourself lifetime freedom.
Yes, you have lifetime freedom to do whatever you want, whenever you want. It’s no longer about chasing after money. You don't have to be obligated to do anything for others anymore. You don’t have to spending another ten hours a day in office. You don’t have to report to bad bosses. Literally speaking, if you don't like your job or your boss, you can just say "suck it up", "sayonara" and just walk away. It's your choice. You call the shot on how you want to live your own life. You call the shot on what makes you happy.
By then, you would have also achieved the highest stage in Maslow’s hierarchy of needs: self-actualisation. You can then focus fully on achieving your full potential as a human being. Your full potential as a human being shall not be limited to just work. Your full potential can be discovered and expressed economically, academically, athletically or creatively.
And that’s where your true inner happiness is.
Myths about early retirement
Despite the fact that early retirement sounds exciting, many people equate retirement to sitting at home, watching television, or doing nothing.
You see many old folks wandering around in shopping malls aimlessly. You see many old folks sitting at home watching television or Netflix every day. You see many old folks taking long naps and lazing around the house day in day out. You see many old folks living their life as if time has stood still. They seem to lose the meaning of their life. They seem to lose the interest in their life. They seem to wait for their death.
Apparently, many people don’t know what to do if they don’t work one day. Is life all about work and nothing else?
I do come across many friends and ex-colleagues who don’t have a clue on what to do if they can retire early.
The most common response is: "Seriously, if I were to retire early, I don't know what to do next. My life has been all about working. I go to work early in the morning. I come home late at night. I take my dinner at 8.30pm with my family. By 9.30pm I go to bed. The next day, I repeat the same. I don't know what else to do without my work. I don't know how to spend my time if I don't spend it in office. I might as well continue to go back to office to work until I fully retire at age 60."
When people around me know that I have chosen the early retirement path, most of them, if not all, expressed their shocks! They couldn’t comprehend why I wanted to retire early. I could see I could see their unanswered question marks popping up on their heads. Even if they didn't ask, I could read their mind.
They might be curiously wondering, "What a waste of talent to retire so early!"; "Why wouldn't he want to continue to work to earn more money?" "How could he let go of his high position in a successful career in corporate world and choose to retire so early?" “What if his retirement fund runs out one day?"; "What is he doing everyday if not going to office? Sitting at home reading newspaper, watching television?"; "Wouldn't he be wasting his time sitting at home?"; "Wouldn't it be better if he could still utilise his talent, knowledge and experience to contribute to society at his workplace?"; "Wouldn't he die young living an idle, meaningless retirement life?"
Can you die young if you retire early?
According to a U.S. research, some retires in America who retire at 60 or 70 die a few years after their retirement. I don't know the actual reason. But one of the possibilities could be that they have been putting their body on a working mode for so long. And when suddenly their body relaxes without any stress after retirement, their body system couldn't cope with the slow down.
Our body needs certain level of stress to keep us healthy and on the go. And I am sure these retirees who fall into this category find nothing to do.
They end up being couch potatoes watching televisions or Netflix at home whole day. They don't socialise with people. They wander in shopping malls just to pass their time. They don't know what to do as they don't have any other interests. Their body and mind shut down the moment they retire.
They probably lose the excitement for living. They probably feel purposeless and useless now that nothing challenging fills up their time.
It used to be work. Once the work is removed from their life, they feel the emptiness and vacuum in their life.
Another possible reason could be that they have been overworking all their lives with hidden long-term illness like high blood pressure, diabetes, high cholesterol. Health has already given them alert during their working years. They have neglected their health all these years without adequate exercise and diet. Finally health is taking its toll on them, cutting short a few years of their previous lives.
Can you live longer if you retire early?
However, I also came across an article written by Dr Ephrem Cheng explaining how early retirement can lengthen a person's life, a drastic contrast to the U.S. research earlier.
Below is his finding:
Age at retirement | Average age at death |
49.9 | 86.0 |
51.2 | 85.4 |
52.5 | 84.6 |
53.8 | 83.9 |
55.1 | 83.2 |
56.4 | 82.5 |
57.2 | 81.4 |
58.3 | 80.0 |
59.2 | 78.5 |
60.1 | 76.8 |
61.0 | 74.5 |
62.1 | 71.8 |
63.1 | 69.3 |
64.1 | 67.9 |
65.2 | 66.8 |
I strongly believe that those people under Dr Ephrem Cheng's study didn't sit idly at home doing nothing waiting to die after their retirement.
They must be continuing to do something right for their physical and mental health. Perhaps they might also have access to better health care system.
What I'm trying to convey is that achieving financial independence and retiring early doesn't mean that you should sit at home doing nothing.
It's not beneficial for your physical and mental health.
Pursuing your inner happiness
With the money and time freedom, you shall take charge fully of your own life. You shall experience what living truly means. You shall find inner happiness. You shall start to live the life you have always wanted to live, do what you have always wanted to do now that you have gained the extra few years of time from no longer working. You shall explore your potential to be the best version of you.
SECTION 5
Life after Retirement:
Health, Happiness, Gratitude, Being Significant
“If you have health, you probably will be happy. And if you have health and happiness, you have all the wealth you need, even if it’s not all you want." -- Elbert Hubbard
F I L L
Financial Independence, Live Life
achieving financial independence from 9-to-5 job before 50
