Financial freedom, as Jim Tabuchi defines it, means measuring your wealth in months of living expenses instead of in possessions: money is time. After 18 years in high tech, he retired from Hewlett-Packard at 42 to mentor and create social impact, and he tells Jeremy Van Wert how a funeral exercise, family history and a clear mission shaped every decision.
ᛉKey takeaways
- Jim thinks of money as time and freedom, and counts his wealth in months of expenses.
- He imagined his own funeral for about four months, and says the exercise showed him that quotas and paychecks were superficial next to the lives he touched.
- When facing a risk, Jim asks "What's the worst thing that can happen?" and says the answer is rarely as bad as the fear.
- He describes himself as a "demand assist" leader: he demands high performance, and rolls up his sleeves to help.
- Many people, in Jim's experience, carry an outdated self-image from childhood, and a clear, truthful mirror helps them update it.
- His advice is to know your long-term mission, then make every decision consistent with it.
ᛃ Moments in this one
ᚠHow Jim Tabuchi's family history became a source of courage
Jim Tabuchi grew up hearing very little about his family's experience in Japanese American internment during World War II, so he pulled the stories out of his father and his aunt and asked for them to be written down. He says his father's family ran a successful department store in Stockton, California, and had to sell everything within about a week after Pearl Harbor.
Jim says his grandfather told his father that wars only last three years, and that the family would rebuild. The family did return to their home, though Jim says his grandfather became ill and died about three months later. His mother's side was interned too.
For Jim, these stories are the basis of his strength. He says nothing that could happen to him is worse than what his ancestors endured, which gives him the courage to take risks to help others.
ᚢThe funeral exercise and retiring early at 42
Jim describes his life in 18-year cycles: school first, then 18 years in high tech. He studied electrical engineering and earned an MBA in international marketing, then worked in Japan and Hong Kong before moving up to senior management at Hewlett-Packard.
A Korean sales manager gave him The 7 Habits of Highly Effective People. Jim took its exercises seriously, including imagining his own funeral and what people would say. He says it took about four months, and that he was working 90 to 100 hours a week with newborn twin sons at the time.
He concluded that quotas, raises and paychecks were superficial, and that his life's purpose was to have a positive impact on everyone he meets. At 42 he stepped away from a path toward vice president. He says his boss once told him he was hard to manage, because he was financially independent and could leave at any time. If you are asking a similar question about your own work, a private 30-minute conversation with Jeremy is one way to think it through.
ᚦFinancial freedom meaning: money as time
Jim says money does not mean possessions or happiness to him. When he was 16, he bought a boom box with his own earnings, noticed how happy it made him and decided he should never get happiness from buying things. He stopped thinking about money in dollars and began thinking in time.
His test is simple: if no more income arrived, how many months could you live on your current wealth at your current lifestyle? As savings and investments grow, that period grows, and at some point he says you no longer need to work. "That's true freedom," Jim says. In his view, wealth only buys time, and time is the one thing everyone has a finite amount of.
He also tells of declining a recruiting offer from Microsoft at 22, because he believes he would have become a workaholic and given up his family. He has no regrets.
ᚨLeadership as service: the arrow, the feather and "demand assist"
Jim offers a metaphor for two phases of life. The first part of his career was an arrow, aimed at one goal. Since leaving HP he has been a feather, saying yes when opportunities arrive, which has led to many chances to help people.
Much of his work is mentoring young adults, since helping a 20-year-old can matter for 60 years and the next generations. He says he mentors for life and has done so for hundreds of people. He created the Catalyst leadership development program, where he saw high-potential leaders as jumbo jets waiting for someone to release the brake.
His style, he says, is "demand assist": he asks for high performance and also offers to roll up his sleeves. He prefers to prop people up rather than criticize them. He also says he is the same person everywhere and does not believe in masks. Jeremy's own background as a licensed therapist, MBA and former CEO shapes how he hears these ideas.
ᚱWhat's the worst that can happen? Fear and an outdated self-image
Asked about fear and insecurity, Jim says they rarely enter his mind. He keeps a saying he also coaches: what is the worst thing that can happen? For executives, he says, the worst case is often losing a job, and talented people can usually find another. If a venture fails, he says, you find out what went wrong and try again.
He adds that many people hold a self-image from when they were five or eight years old, such as being bullied or criticized, even after they have succeeded. His coaching aims to be a perfect mirror that shows who they are today.
ᚲMoral injury, burnout and meaningful work
Jeremy describes moral injury as a psychological scar from being asked to do things at work that go against your own sense of what is right, and links it to burnout. Jim says he has seen it across helping professions such as nursing and education. In his view it is often mislabeled as burnout or PTSD, and a bouquet of flowers is no fix. He says people need to return to the values that led them to the work, using success stories as reminders.
Jim believes you can find meaning in any job. He mentions that he has considered volunteering in a fast-food kitchen to test that idea. If you are feeling worn down, individual therapy and coaching with Jeremy offers a place to talk it through, and the Mindful Mutiny community offers conversation, since Jim also stresses how much community matters.
ᚷBuilding a legacy: know your long-term mission
Jim's current goal is to reach a million young people. He does the math aloud: leading a drum corps reaches about 150 kids a year, which would take thousands of years, so he must think in a bigger and more systematic way and empower others to do the same.
His closing advice is to know your long-term mission. Picture your funeral: who is there, who is missing, what people say. Then make every life decision consistent with that legacy. For Jim, that means he cannot lie, cheat or steal from anyone, because his mission is to lift people up.
Jim describes his own choices and views, and nothing here is personalized financial advice. Parts of this episode touch on historical hardship and trauma; take care of yourself while reading.
ᚨ Questions people ask
What does financial freedom mean?
Jim defines it as having enough wealth that you no longer need income to cover your living expenses. He measures it in months of expenses, which he describes as time and freedom.
Why did Jim retire at 42?
He says the funeral exercise from The 7 Habits of Highly Effective People showed him that paychecks and quotas mattered less than his positive impact on people. He was financially independent, so he could step away and focus on mentoring.
What is the funeral exercise?
Jim describes imagining your own funeral and what people say about your life. He spent about four months on it and uses it to clarify the legacy he wants to leave.
What is a demand assist manager?
Jim uses the term for a leader who demands high performance and also rolls up their sleeves to help the team succeed. He says this gives people focus and the assurance that he is on their side.
How is moral injury different from burnout?
Jeremy describes moral injury as a scar from doing work that goes against your values, and ties it to burnout. Jim says it is often mislabeled and calls for returning to the values that drew a person to the work.