What is financial freedom to you?
And how do really define being financially free?
My thought was write a blog article about another subject about financial freedom. But doing a quick research on the internet, reading a few articles and blogs, I quickly realized that there is a lot of confusion to what financial freedom really is.
Some blog article even stated 4 different types of financial freedom, which is totally ridiculous. Either you are financially free, or you are not. It’s just like the saying; you are either pregnant or you are not. You cannot be a little pregnant.
Sometimes the concept of being financially free is sometimes called being financially independent. However, being financially free is not necessarily the same as being financially independent.
Let’s dive into the concept and see what we find…
First, let’s see what free or freedom really means.
The Merriam-Webster dictionary defines freedom as “the quality or state of being free: such as the absence of necessity, coercion, or constraint in choice or action”.
What does this mean if we apply freedom to money?
It means that you are free to choose what you want to do with your life and your time, without being coerced, or having the necessity to act, and still get or receive the monetary means you need to carry on your life.
To put it more plainly; you need enough money coming in to pay for your desired lifestyle, without you having to work for it.
That means, that if you should have financial freedom, you must have a choice to work for getting you money, or the choice not to work for money. If you need to work to get a salary to cover your monthly expenses, you are not financially free.
But if you can choose to continuously do whatever you want, without working, and still receive enough income to pay for your desired lifestyle, then you are financially free.
Then there is the vital question – How do I get enough money coming in to pay for my lifestyle, without working?
The only way to do that is to have something called passive income, which you can read about in another blog article.
To summarize:
Financial freedom is when you have the freedom to do what you want with your time and in life, being able to pay for your desired lifestyle, without the necessity to have to work to get money to cover the expenses for that lifestyle.
Live with passion - make your life magical
