Financial Freedom – What Is It?
Right to the point. Financial Freedom is the liberty to chose without restraint. Sounds good but what does that mean? Can we break it down further? Yes. Since our finances, our money and possessions are simply tools for us to use to meet our life’s goals, financial freedom is defined as having the attitude and resources to live abundantly in each stage of life, free of worry, to completely live out the full purpose of one’s life. Many people have heard about the concept of financial freedom, but what does it really look like?
Financial freedom goes far beyond having a few bucks. Sustainable financial freedom enables us to reach our potential as people. This freedom has five key components:
- A VISION for how you want to invest your time, talents and money
- Vision possesses purpose and passion
- A PLAN (budget) that supports your vision and quality of life you want to maintain
- Living within your means is the only way to sustainability
- A DEBT-FREE approach to everything we purchase
- The obligation of debt steals away freedom
- A bias toward SAVING
- Saving for emergencies, needs, dreams and retirement
- An ATTITUDE of contentment with where you are, and gratitude for what you have.
Benefits of Financial Freedom
What are the benefits of having this financial freedom? I mean, doesn’t everyone have to struggle with their finances, worry about debts and only hope that someday they can have savings, vacations and maybe a new car? The short answer is no. Stressed day to day living where we live paycheck to paycheck is not a given. Financial freedom can be yours.
In my experience, there are so many benefits from obtaining and maintaining financial freedom. Sometimes it is hard to get there but it is worth it! Narrowing the benefits down to just three is very difficult. But here are my top three benefits of living in financial freedom:
Less worry or anxiety about money and life
With financial freedom comes a plan and preparation in the form of a budget, savings and proper insurance for what life brings. This leads to much less worry and anxiety which leaves more room for living in the moment and enjoying life. This peace of mind may possibly be the biggest benefit of financial freedom and leads to an improved quality of life.
Options: Freedom of choice
With a balanced budget, savings, a retirement plan, no debt and proper insurance you now have margin in your life that allow you to have choices: Choices on where you spend your discretionary money. Choices on where to spend your time. And most important, that margin allows you to participate, if you choose, in new opportunities and experiences.
Living with Purpose and Passion
When you are secure that your current and future financial needs are going to be met, you switch your focus from day to day existence to pursuing the passions in your life. In effect, financial freedom allows you the freedom to focus your energy into those things that excite you.
Summing It Up
I have found that worrying less, having freedom of choice and living with purpose and passion has resulted in being happier, healthier, more content and grateful. As a result, I want to tell everyone about financial freedom and strongly encourage all to make the effort to achieve it. Notice that I did not speak about money, wealth nor possessions per se? The money side of financial freedom is great too, but the freedom and attitude benefits listed above are far more evident on a daily basis and therefore more valuable.
I hope you have financial freedom. I hope 2016 is a year of freedom, choices, purpose and passion for you and your families. And I hope you experience these benefits of financial freedom and more, this year and beyond!