The Meaning of Life – Responsibility

What is the meaning of life? What makes life worth living?

How can having a meaningful life help you become financially independent?

You will learn:

• What is the meaning of life?
• What makes life worth living?
• How do many people avoid taking responsibility for their life?
• How can having a meaningful life help you become financially independent?
• How can you become wealthy?

What is the meaning of life? What makes life worth living?

The classic book “Man’s Search for Meaning” by Viktor Frankl showed that the people that survived many years in the German concentration camps were not necessarily the youngest, strongest or most fit. They were the ones that had a reason important to them to survive. It could be to see a lover or family, personal aspirations, creative or intellectual pursuits, belief in a higher power or transcendent purpose, or a duty to bear witness to the atrocities.

Viktor Frankl said that those with a “why” to live (a future-oriented purpose) could bear almost any “how.”

A few notable thinkers, like Confucius and Jordan Peterson, advocate that taking responsibility for your actions, family, community, or something else gives your life structure and meaning.

Meaning is not handed to you. It is something you actively pursue.

Responsibility should be something you freely decide to take on. It can be to work on a goal, care for family or friends or something else, to your own freedom of expression or creativity, or for personal growth. It depends on what you value or choose to prioritize.

The meaning of your life is based on what you decide you want to be responsible for.

How do many people avoid taking responsibility for their life?

Many today try to avoid accepting responsibility, especially when they feel they have failed. They may blame their parents, culture, friends, school, boss, society, or just having had a hard life. It does not matter if the reasons are true. Not taking responsibility for your own actions and your own life makes it hard to move forward and become successful (however you define success).

Excuses for failure are not a good basis for success.

I’ve seen people try to accomplish something, but before they start, they already have their excuse for why they will fail. With this view, you usually fail. You don’t have the drive to overcome challenges.

I had an early career in manufacturing, where we learned about “kaizen”, or continuous improvement. That is how to become successful in life. Continuously improve yourself. Constantly learn, work hard, learn a skill and improve it, and take responsibility for your own success.

Success is not handed to you.

How can having a meaningful life help you become financially independent?

The same principle is true for financial success. It’s rarely handed to anyone. Most millionaires and billionaires made it all themselves.

To become financially independent, you need to be responsible for your own finances, including having a plan for the life you want and how to get there, saving a significant amount, and investing effectively for the long term.

Wealthy people grow it themselves with investments or a business.

High income is helpful, but not essential. “It’s not what you make. It’s what you keep.” I have seen high income people not able to save anything, and I’ve seen low income people save an astoundingly large amount. Saving a significant amount is easier if you have a high income, though.

High income comes from learning a valuable skill. Some (not all) university degrees (such as STEM fields like IT or engineering) or sales or trades, or skill as an entrepreneur.

Wealth builds with age. The wealthy are mostly older people, say 50+, who saved & invested over the years.

Great news! You can do this! It’s not like your past that you can’t change. To become financially independent, just save a good amount & invest for growth for the long-term.

How can you become wealthy?

Here are the steps. Note that each step is something you have to do. If you want to become wealthy, you need to take personal responsibility.

You can do these steps by yourself or working with professionals to help you.

Steps:

1. Learn a valuable skill, so you can earn a decent income.

2. Get a Financial Plan, so you know what “wealthy” means for you.

• Know how much you need to save & the rate of return you need.

• Your Plan keeps you focused on the long-term. Avoid short-term mistakes.

3. Save & invest early. Invest as much as possible when you are young. Benefit from 40 years of compounding.

4. Wealth builds with age. Invest for the long-term. It typically takes several decades.

The stock market historically has doubled about every 7 years on average. To see how it grows, let’s say you start with $100,000. In 20 years, your money typically doubles 3 times to $800,000, in 30 years 4 times to $1.6 million, and in 35 years 5 times to $3.2 million. That is just starting with $100,000. Just invest effectively for the long term and stay the course.

5. Invest in equities (stock market investments), a business, or real estate with a large mortgage. Equities have historically been the asset class with the highest growth. A business is a type of equity with the stock market being many businesses. Real estate can be a good investment, but usually only if you keep a large mortgage, because the return is too low on its own.

6. Borrowing to invest (leverage) into equities is the most effective growth strategy if done by the right people in the right way over the long term. It can be a very powerful way to grow wealth over decades.

Take responsibility for yourself and your success. Then you can have a meaningful and rich life.

Ed