What is Financial Freedom or Financial Independence?
What is Financial Freedom or Financial Independence? How do you define it? A quick Google search will bring thousands of pages about this topic with varying wordings. Wikipedia defines it as “the state of having sufficient personal wealth to live indefinitely without having to work actively for basic necessities”.
I think that it is not important how Wikipedia or Google define it, but how you define it! This is how I define Financial Freedom:
- It is eliminating the money being the #1 factor for any financial decision
- It is having options/choices in ones life as to what to do for the rest of your life
- It is not being chained to a job from 9 to 5
With this logic, it is not necessary to be rich to enjoy life. One could be financially independent on a relative small annual budget, but may not be considered rich by society, yet enjoy life to the fullest.
How could we achieve Financial Freedom?
I believe that the key is to have a strong desire to achieve it. The rest would come as a result of that strong desire. If you really want, you will make a well-designed plan, work hard towards it and show discipline to stick to the plan… you get the idea.
Someone once told me that if one doesn’t want to do something, the first thing he/she does is to generate excuses not to do it.
So, what are the common excuses for not achieving Financial Freedom?
- I don’t make much
- I am in debt, what savings are you talking about?
- I have a (mortgage, car payment, and college bound kids… etc) so I can’t save a penny now
- I don’t have a retirement plan at work
- I am too late in the game
- I am too young to save
- I just can’t save money
- My lifestyle is expensive, consumes what I make and I like it!
- I don’t want to lock my money until I reach the age of 59 ½
- Social Security will be enough for me
Did I miss any? Help me here
The point is that one needs to desire financial freedom in order to achieve it. The desire is the driving force for making early scarifies for later pleasures.
What is your take on all of this?