What does financial freedom mean?
When we are planning for our finances, we must decide how we will measure our success. One such measure is by achieving financial freedom, but what does financial freedom really mean? The term “financial freedom” is thrown around a lot by both traditional financial planners and investment advisers, as well as every infomercial get-rich-quick scheme. Typically, most of the schemes are using the term to mean being so rich you never have to work again. But really financial freedom means being released from uncertainty and being able to confidentially know that you will be able to meet your life goals.
This may mean that you have enough passive income (through pension, investments, business ownership, or real estate rental income) to finance your basic expenses. Or, it may mean that you simply know how to use your income, and investments, to create a life where financial issues are no longer holding you back from your goals. But what I think is not important — what does financial freedom mean to you? If you lived in a world where you KNEW that you were going to be able to reach your goals, and you knew exactly what to do to reach your goals, how would that feel? What words come to mind when you think of financial freedom?
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Comments (6)
US workers are so self-defeating. The unions don’t seem to care about the state of the economy. How about making prosperity rather than destroying it individuals?
Financial freedom is really important. You do not have to be rich to be free financially; but if you can go by the day and still have savings that you can use in the future for you or your family.
Hi there! Financial freedom needs to be worked for by all working people. By being financially free, the future looks rosy.
Its hard to determine what financially free really is, but the people who make it there some how figured it out. This article provides a good rough outline to the steps to a financially free life.
Cody, webmaster at Periodontist San Luis Obispo site.
To me financial freedom doesn’t necessarily mean being a millionaire. It just means that I can do what I want, when I want, and I can live my life comfortably without having to worry about money. Then again, happiness in life means different things to different people, so the concept of financial freedom may also differ from one person to another.
@ RJ and Stacy, it’s true you don’t need to be rich or a millionaire to achieve financial freedom. But not many people can achieve this. Most of us still live with debt all around.