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Exploring financial freedom with The Great Gatsby and Ken Honda’s “financial abundance” method and what that means to Canadians.
Canadians aren’t short on advice for achieving financial freedom. A quick online search for “how to become financially free” will give you results that can be either informative or confusing. To be fair, some of it is correct, some is misleading, and some is downright wrong. Sources range from personal anecdotes that have worked for the author, to well-researched evidence-based strategies. But you’re not here to learn about my recent Google search history, so let’s dive in.
Financial freedom is the belief that a certain amount of savings is the ultimate ticket to living a life you want without worrying about money. However, this often means tight budgets, excessive saving and putting off simple pleasures. That could mean not dining out or not taking a spontaneous weekend getaway just to save money, so that one day you can enjoy these things. But when? What happens if it never comes and our time runs out?
To answer this, remember that happiness and a fulfilling life go beyond money. I looked at this in my column “Does money buy happiness?” As you can expect, the answer is: “It’s complicated.”
The classic novel The Great Gatsby by F. Scott Fitzgerald explores how lavish parties and the impression of having excess money can imply financial freedom. Though fictional, its message resonates. The plot also uncovers the void that material wealth cannot fill. Gatsby tries to win back Daisy Buchanan, his lost love. He discovers money can’t fix the hurtful past. Similarly, Daisy’s husband, Tom, shows that riches don’t protect him from his own personal troubles. Financial freedom isn’t just about reaching a money goal. It urges readers to explore beyond the pursuit of hard work, savings and investments.
Let’s move beyond fiction.
Ken Honda is an expert in money and happiness. His bestselling book Happy Money (Gallery Books, 2019) introduces a unique perspective, in that achieving financial freedom involves a delicate balance of two key components: money IQ and money EQ.
IQ stands for intelligence quotient. This focuses on the knowledge of finance, such as investing, budgeting, taxes and financial literacy—the technical side of money. It’s about the know-how for managing money effectively. From a financial freedom perspective, it means earning and growing enough money until we reach a stage where our investment returns and savings can sustain a life without working.
Emotional quotient, in contrast to money IQ, revolves around our emotional relationship with money. It is about how money makes us feel, the meanings we attach to it, and its role in our identity. Money EQ delves deep into our attitudes and beliefs towards money and how they affect our well-being. According to Honda, showing your appreciation toward money—thanking it, even—is a vital step towards achieving emotional financial freedom. Honda often says, “when we appreciate our money, it appreciates.” Money EQ involves how we receive, enjoy, share and relate to money.
To find balance between money IQ and money EQ, Honda suggests inviting the concept of “happy money” into our lives. This notion reflects money that not only funds our needs but also adds a positive dimension to our emotional and psychological wellbeing.
Yet, you might wonder, does this notion of happy money work? With nearly half of Canadians citing money as a significant source of stress, perhaps it’s time to evaluate our own emotional responses to money.
While this may seem unconventional, it can resonate with the principles of positive psychology. Honda’s philosophy emphasizes a holistic approach, merging technical knowledge with emotional understanding, much like the integration of positive psychology and financial principles. (Read more about positive psychology in my article “What is the PERMA model? Can it help Canadians to spend better?”)
Essentially, Honda encourages us to use the principles from positive psychology—such as gratitude, patience, compassion, contentment and a mindful appreciation for experiences. He suggests that cultivating a healthy relationship with money not only sustains us but also contributes to our overall happiness.
As for financial freedom, Honda’s approach reminds us that happiness and financial wellbeing are connected. So, if you have a goal for financial freedom, remember that happiness isn’t just a destination achieved by reaching a financial threshold. There’s more. Ask yourself these questions as you reflect on your journey:
Financial freedom is an ongoing process that involves building a healthy relationship with money—one that not only secures your future financially but also enriches your present.
To hear more on this topic, check out the podcast “Finding Happiness Through Happy Money: A Conversation with Ken Honda.”
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Bravo
Finally someone is addressing the value of “counting your blessings” & “gratitude” as forming part of our financial plan.
Diane, counting your blessings and practicing gratitude does go along way, even when it comes to our financial lives, thanks for the comment