Given the name of this website, you may wonder why we focus on achieving financial freedom, rather than just making money, replacing your income, building a retirement fund, or any other way you can look at profiting from investing. While these are all tremendous goals that can sometimes overlap, they are indeed different.
What Is Financial Freedom?
Put simply, financial freedom is the ability to do what you want to do on a daily basis, without the requirement of having a job that pays a certain amount. The key word here is requirement. There is nothing wrong with continuing to work once you’ve reached financial freedom, but at that point it’s your choice. Most people work because they require income to survive, financial freedom is breaking free from the need.
When Is It Financial Freedom?
Financial freedom is more than just replacing your current income. In fact, it may be much less. Financial freedom focuses on earning you enough to survive, so that anything else you do with your time is up to you. Many people would continue working so they have more than they need to survive, but your funds tend to go a lot further when your needs are met. Once you don’t have to worry about rent/mortgage, groceries, gas, electricity, and the other essentials to most families, you’ve reached financial freedom.
How Do You Achieve Financial Freedom?
At first, gaining financial freedom may seem like nothing more than a pipe dream. An endless goal that you will never actually reach, but will die trying. Other times, you may look at it as simply retirement, but it’s more than that. Retirement focuses on leaving your job and not working anymore. Financial freedom is all about building wealth, regardless of if you intend to keep working or not. Building wealth focuses on growing your net worth, rather than just boosting your income, which will likely result in wasting more money. By focusing on building wealth, it helps you identify the paths which can lead you to long-term success, rather than momentary luxury.
What If I Don’t Know How To Invest?
Investing makes most people uneasy and confused. Everyone always likes the idea of earning more money, but most are too scared to actually invest in anything. There are dozens of different strategies for investing that can tailor to each person’s individual needs, risk tolerances, and goals. The purpose of this website is to help you identify which investment strategies are right for you, and then to give you a push in that direction. While today I’m focusing on what financial freedom is as a whole, there will be many more articles about how to invest and they will include specifics on what to do, when to do it, and how to do it.
What Happens When I Reach Financial Freedom?
When you reach financial freedom, you get to do pretty much whatever you want. Maybe you want to travel the world, visiting different countries and monumental creations. Maybe you want to live a life of comfortable luxury. Maybe you want to spend time with your friends and family. You might even want to keep working! The point is, when financial freedom is reached, you have the flexibility to enjoy life the way you see fit.
While the end goal is important, keep in mind that life is beautiful and exciting along the way too. The journey is a large part of the fun, so make every minute count.