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What is Financial Freedom?

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Financial Freedom

Did you know that our most important asset is our time?

What if we could spend our time doing what we love and fulfilling our Divine purpose instead of moping around complaining about our jobs?

Research shows that over 60% of people are not engaged or motivated at work – they pretty much do not care.  They turn up (most of the times) and drag themselves through each day.  They turn up primarily for the pay cheque.

 Is there another way?

This is where being financially free comes in.

So what exactly does Financial Freedom mean and mostly importantly, how do we get there?

This kind of freedom is having enough passive/residual income (income we earn over and over again from work that we have done one time.  For example, sales from a book we wrote, income earned from network marketing or income earned from a rental property) to cover our monthly living expenses.




The formula:  

Passive/residual income > (greater than) monthly living expenses

This means that we can do whatever we want whenever we want – with this freedom comes CHOICE!

What Financial Freedom is NOT

It is NOT:

  • making a 6 or 7 figure income;
  • becoming a billionaire; and
  • necessarily living in a gigantic house or driving the most expensive car.

These views make this kind of freedom seem out of reach.  They also lead to the belief that this freedom is only for the chosen few.  These are two of the reasons why so many of us do not aim to be financially free.

Let us look at Sam as an example. 

Sam has a job that pays him $15 million dollars per annum.  This is his only source of income.  His wife is a stay at home mom and she takes excellent care of their 2 children.  Their children attend one of the best private schools in the country. 

In recent times, Sam has been finding it challenging to save money and to meet his monthly living expenses.  In addition, there were some adverse changes at job.  Sam is worried that he may lose his job because he has no idea how he and his family would survive if he did.

You see that even though Sam is earning a 7 figure salary, he is still not financially free: no job = no pay.

How do you get closer to this freedom?

To successfully get somewhere, a few of the things that we must know are:

  1. exactly where we are right now;
  2. exactly where we are going;
  3. why we want to go to the place; and
  4. how we intend to travel to the place.

Becoming this free is a process; it takes times and rarely happens over night.

To get closer to financial freedom we can either increase our passive or residual income and/or decrease our living expenses.

Of course most of us fall into the trap where our living expenses increase the more we earn.  Sometimes this is a mere case of ‘Keeping up with the Jones’.  In these circumstances, we need to let go of the limiting thoughts that we need to look and act a certain way the more we earn.  We need to keep our eyes on the prize!

In conclusion, Financial Freedom is not necessarily about becoming a billionaire.  It is about having enough passive/residual income to cover our living expenses.  With this kind of freedom comes choice. 

We must ask ourselves: “what do we love doing?”  “What tickles our fancies?”  “What gets our juices flowing?” We should spend our time doing these things by becoming financially free.

 Dare to believe in the power of you and cheers to living a victorious life!

Not to worry – in subsequent articles, I will go even deeper into what I have discussed above.  Like what you read?  Be sure to leave a comment below and share this article with your family and friends. 

Financial Freedom
Credit: http://www.freedigitalphotos.net/


Mar 18, 2014 6:05pm
You are right Kaynijo, we all wish to reach financial freedom. I guess this is one of the reason we are writing articles on Infobarrel. It's a small step, but a step nevertheless.
Mar 18, 2014 7:25pm
Absolutely Larah! I couldn't agree more - we must first take that small step so that eventually we can run :)
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