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The Fight for Independence
The FITR ideology
The origins of the employee-employer relationship stem from the master and servant dynamic. From a power perspective, the master controlled the actions of the servant and held the balance of power majority.
As the employment relationship has evolved, the struggle for power has continued. Employees formed unions to enhance their power collectively. This show of group power has undoubtedly increased entitlements and employee protections but has not erased the underlying control factor.
Employees remain beholden to their employer and work is performed at the employer’s behest. Traditionally, employees could not choose their hours, their place of work or the way in which work was performed. They could not outsource tasks or refuse a reasonable request to work.
Although the balance of power has shifted over time, thanks in part to labour shortages, post-Covid work from home requests and technological advancements, employees remain dependent on the employer. The fight for the feeling of personal empowerment is front and centre.
This desire for control and independence has resulted in the rise of the contractor. Whether the contractor is truly independent is up for debate. Regardless, employees have accepted a new form of work in exchange for more power.
So, at what point should an employee leave the safety and security of traditional employment and transition to the independent contractor? It is of course, a subjective decision. It depends on the employee’s personal risk and reward calculation. Thus, the independence tipping point is different for each person.
Financial independence plays a key role. Tax rates are a key factor too. When interest rates are high and individuals have large savings amounts, they are more likely to transition earlier to retirement if they have a passive income safety net. This is the basis of the FIRE movement (Financial Independence Retire Early).
Retirement is an elusive and transient term. It can include no paid work, volunteer work or other forms of community service. Many who retire or transition to retirement find that they need a new purpose to fulfill their identity needs. Soul-searching opportunities exist during this transition time.
For those who are uncomfortable with the idea of traditional retirement and wish to continue working in some capacity, the alternate movement identified by my friend and Money School founder Lacey Filipich is FITR (Financial Independence Time Rich).
The FITR ideology encompasses a wide range of independence-seekers, be they gig workers, casual and part-time employees, contractors or volunteers. The fight for empowerment and independence through various forms of service continues.
Are you ready to be a FITR convert?!
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