#257 Financial Independence vs. Financial Freedom: Which One Are You Really Chasing? ft. Peter Kim, MD

The Physician’s Dilemma

Physicians often chase success through long hours, academic achievement, and the promise of a better future, only to find themselves stuck in what feels like a never-ending grind. Peter Kim opens the episode by questioning whether we’re truly pursuing financial independence or financial freedom—two terms that seem interchangeable but actually reflect very different goals. He acknowledges that many physicians feel trapped despite reaching prestigious career milestones like becoming attendings. The hamster wheel continues—long shifts, mountains of paperwork, and sacrifices made at the expense of family and personal well-being.

This section highlights how many doctors are feeling disillusioned after finally “making it.” Instead of feeling free, they’re realizing that being an attending doesn’t necessarily equal time freedom, financial comfort, or peace of mind. The constant need to be present to earn income—trading time for money—only deepens the dissatisfaction.

Peter puts it plainly: “You still have these long hours, endless paperwork… a cost to this, not only mentally, emotionally, physically.” He shares that even he’s missed out on family moments and sees how hard it is to travel now that his kids are older and busier. He invites listeners to consider: What if we stopped accepting that stress and time-trading were normal? What if we could design our lives to prioritize freedom?

Defining Financial Independence

Peter dives into the term financial independence—commonly abbreviated as FI—and gives it a clear, practical definition. It means having enough passive income from investments to cover your essential living expenses. These expenses might include rent or mortgage, groceries, insurance, and day-to-day necessities. If your passive income equals or surpasses this amount, then technically, you’re financially independent. It’s a huge milestone, but Peter clarifies that it doesn’t necessarily mean you can live your ideal life—just your basic one.

He explains that at this point, work becomes optional. You might still work for personal fulfillment or to afford extra luxuries, but you no longer need to work to survive. Many people strive for this state to escape the 9-to-5 grind and feel a sense of control over their time and schedule.

Peter offers a clear example: “Let’s say you’re a physician with a portfolio of rental properties… you’re generating $15,000 of passive income a month and your expenses are also $15,000—you’ve reached financial independence.” That scenario alone is incredibly empowering. You’re not rich by every standard, but you’ve bought back your freedom of choice.

Financial Freedom – The Ultimate Goal

Financial freedom is where Peter believes the real magic happens. Unlike financial independence, which covers your needs, financial freedom allows you to meet both your needs and wants without worry. You can travel, give to causes you care about, support family, and spend without watching every dollar. Importantly, money no longer determines what you can or cannot do—you do.

This is the stage where wealth generates so much income that you no longer need to worry about trading time for money. It’s about abundance. With the right investments and assets, your portfolio can keep growing even after expenses are covered. And when that happens, Peter says your focus can shift from money-making to meaning-making—impact, purpose, and fun.

Peter shares a story to illustrate this point: “I know of a physician who sold his medical practice for millions… put that money into cash-flowing investments, and now he doesn’t have to think about money again.” That’s financial freedom. He explains that this freedom allows you to ask, How can I make an impact? instead of How can I make ends meet?

Personalizing the Journey

Peter reminds listeners that both financial independence and financial freedom are deeply personal. What’s enough for one person might feel limited to another. He emphasizes the importance of deciding what you actually want your lifestyle to look like. For him, it’s working by choice, making a meaningful impact, traveling with his family, and creating joyful moments they’ll always remember.

Everyone’s goalpost is different, and that’s the point. This isn’t about comparing yourself to someone else—it’s about knowing what you value and building your financial life around that. The journey is not just about passive income or quitting your job, but about designing a life with no regrets.

He puts it beautifully: “Mine is working because I want to… living a life without regrets… maximizing my time before my health changes.” Peter shows that financial freedom isn’t about extravagance—it’s about intentional living. The key is knowing your “why” and using money as a tool to fulfill it.

The Next Step is Yours

To wrap up, Peter brings the conversation full circle: knowing the difference between financial independence and financial freedom is only half the battle—the next step is deciding where you want to go. He challenges listeners to reflect on what stage they’re in, what they truly want, and what steps they’re actively taking to get there.

He closes with a powerful reminder: most of us went into medicine to help others. Reaching financial freedom doesn’t end that—it enhances it. With time, energy, and resources, we can serve in even greater ways. The goal isn’t to sit on a beach forever—it’s to live a life of purpose, freedom, and contribution.

Peter ends the episode on a warm, motivational note:

“Maybe you don’t agree with me, but I think we’d get bored just sitting on a beach every single day. We’re meant for more. We’re meant to give more, to be more.” — Peter Kim, MD

It’s not just about chasing money—it’s about chasing meaning. And now, the question is: What are you doing to get there?