Wow—have you been watching the stock market lately?
No, really. Not just the last few days, but the past few years.
If you’ve been invested in broad-based index funds, particularly something like the S&P 500, your portfolio has likely grown beyond your wildest expectations. We’re talking about a roughly 57% increase in just the last two years, and more than double over the past five. That’s a staggering rate of return for what is supposed to be the “boring, steady” part of a long-term portfolio.
This performance is the kind of thing that causes people to glance at their account balances with widened eyes, feeling a mix of joy, disbelief, and an almost uncomfortable sense of “now what?”
For some, this rally means they’ve rocketed past their original retirement targets. The folks who thought they were only halfway to financial independence during the COVID-19 slump might now find themselves, unexpectedly, on the other side of the freedom finish line. Even those who were already “retired” — or at least living a financially independent lifestyle — may now be facing a strange new kind of temptation: the urge to spend. To upgrade. To indulge.
And that’s where the real question begins: What does all this money mean? Is it real? Is it sustainable? And more importantly — what should we do now?
The Mirage of Ever-Rising Numbers
It’s natural to wonder whether these gains are legitimate or just the latest version of a bubble. After all, we’ve been here before. In the late ‘90s, dot-com stocks soared into the stratosphere. Then came the 2008 financial crisis, where fortunes evaporated overnight. And now, once again, the market has surged, seemingly without limits.
But here’s the uncomfortable truth: We can’t know for sure. Nobody can. Markets fluctuate. They rise, fall, and rise again, often for reasons that defy prediction. Timing the market — jumping in and out based on whether you think it’s too high or too low — is a fool’s errand that’s tripped up even the most seasoned professionals.
Instead of obsessing over whether this growth is a bubble or not, it’s more useful to shift your attention to a different, more powerful concept: what this growth allows you to do.
The Freedom Behind the Numbers
If your net worth has recently doubled or grown dramatically, congratulations. But rather than immediately asking yourself whether it’s time to buy the beach house, consider this: Has this money given you more freedom?
Because that’s the real goal of financial independence. Not accumulating numbers on a spreadsheet, but acquiring options. Choices. The ability to say no to things that drain you, and yes to things that matter.
Has your wealth made it possible for you to leave a job you hate? To spend more time with your family? To invest your energy into projects that align with your values? To slow down, travel, or simply breathe a little easier?
If not, then maybe it’s time to rethink the purpose behind your savings.
The Risk of Reaching Too Far
Sudden wealth can be dangerous if you’re not emotionally prepared for it. Just because your portfolio is larger doesn’t mean your life has to become more expensive. In fact, inflating your lifestyle to match your portfolio is one of the easiest ways to lose the freedom you’ve worked so hard to gain.
That’s why many long-time financial independence veterans — the ones who have “made it” — often choose to keep their lives relatively simple. Sure, they might splurge occasionally or enjoy a bit more comfort. But they don’t go out and buy mansions, yachts, or a new car every time the market pops. They understand that true wealth is the ability to live life on your terms, not the ability to buy more stuff.
It’s tempting to upgrade, especially when headlines scream about record highs and your net worth keeps ticking upward. But you must ask yourself: Are these upgrades actually improving my life, or just cluttering it?
So… What Should You Do?
If you’ve reached or exceeded your original financial goals, here are a few things to consider:
- Reassess your life plan, not just your financial plan.
If you’ve reached financial independence, don’t just let the money sit there like a high score in a video game. Think about what you want. Time, meaning, connection, health — those are the new metrics that matter. - Resist lifestyle inflation.
You don’t need to be a monk, but avoid letting rising wealth push you into needless spending. Buy what brings real joy or usefulness, not what simply signals success. - Review your asset allocation.
If your portfolio has grown dramatically, your allocation might be skewed. Maybe it’s time to rebalance or build in some margin for safety. Not out of fear, but prudence. - Practice generosity.
If your needs are met and your future is secure, there’s no better feeling than helping others. Give freely — whether that’s money, time, or skills. - Stay grounded.
Remember that bull markets don’t last forever. Build your life so that it continues to feel rich even if the market takes a dive tomorrow.
Final Thought: Money Is a Tool, Not the Goal
The rise of the market is a reminder of what’s possible — both financially and personally. But it also offers a warning. If we tie our sense of security and happiness to a number on a screen, we will always be vulnerable to the next dip, crash, or correction.
Instead, let your wealth become a quiet, empowering force in your life. Use it to build a life you don’t need to escape from. Use it to craft experiences, relationships, and memories that the market can never touch.
Because when the numbers on the screen fade, your real life is what’s left. Make it a good one.
