IKIGAI THROUGH THE LENS OF FINANCIAL INDEPENDENCE

Financial independence involves progressing through several stages that impact stress levels in both personal life and career. Each stage represents a step towards greater financial security and less dependence on a paycheck, with corresponding changes in career-related stress.

1. Financial Dependence (Living Paycheck to Paycheck)

In the earliest stage, individuals rely entirely on their job to cover expenses. Stress levels are high as financial emergencies can quickly destabilize their situation. The need to keep a steady income often leads to staying in unsatisfying jobs or overworking.

Stress Management: Build a small emergency fund to reduce the anxiety of unexpected expenses.

2. Financial Solvency (Breaking Even)

Solvency is reached when you can cover monthly expenses without adding debt. Although still vulnerable to income changes, stress decreases slightly as financial pressure eases.

Impact on Career: You might start exploring new career opportunities but still feel tethered to job stability.

Stress Management: Focus on eliminating debt and continue saving to build financial confidence.

3. Financial Stability (Building a Safety Net)

In this stage, you’ve saved enough to handle short-term financial challenges. Stress levels lower, and there’s more freedom to take risks like switching jobs or pursuing side projects.

Impact on Career: You can begin negotiating better work conditions or pursue more fulfilling but lower-paying opportunities.

Stress Management: Keep building your emergency fund and investments for long-term stability.

4. Financial Flexibility (Covering Lifestyle Needs)

Financial flexibility means you have enough savings or passive income to cover a portion of your expenses, giving you more options in your career and personal life.

Impact on Career: You may feel less pressure to work full-time, allowing you to explore passion projects or part-time work.

Stress Management: Focus on diversifying income sources to further reduce reliance on any single job.

5. Financial Independence (Covering All Expenses Without Work)

At this stage, passive income fully covers living expenses, reducing financial stress significantly. You no longer need to work unless you choose to.

Impact on Career: You can pursue work purely for enjoyment or fulfillment, knowing your financial needs are secure.

Stress Management: Find purpose beyond work to maintain mental well-being.

6. Financial Abundance (Beyond Financial Independence)

Here, wealth exceeds your living expenses, allowing you to create generational wealth or contribute to philanthropy.

Impact on Career: Work is entirely optional, and many focus on passion-driven projects or giving back.

Stress Management: Engage in legacy-building activities for fulfillment.

Conclusion

Each stage of financial independence brings less reliance on a paycheck, reducing career stress over time. As you progress, the freedom to pursue meaningful work increases, transforming your career from a necessity into a fulfilling choice. In terms of Ikigai or rather 'Evolving Ikigai', with proper career AND financial planning strategies you can have the opportunity to shift the focus of your work onto more meaningful work even if your choices might have looked bleak as you began.