Whatever you decide, you can do many different things to get out of a financial crisis. This article will walk you though how financial freedom can change your life, and why I believe it should be a goal for everyone to aspire too.
What is Financial Freedom?
Financial freedom is the control or ownership of enough resources to live a life on your terms. It can also be described as making enough money not to have to work for money anymore.
A person can use many different techniques and strategies to become financially free, all of which rely heavily on basic financial knowledge and skills, discipline, and time management.
Whether you are a high-earner or a stay-at-home parent, financial freedom is essential for everyone and can be achieved by everyone. It doesn’t matter what job you have or your financial situation; if you are financially free, you can do whatever you want, when you want.
You would think that becoming financially free must take a lot of time and effort. However, it takes relatively little maintenance per day. The average daily time spent on this path is less than one hour.
It is mainly at the beginning where you will have to put the most work to master your finances. After that, it only takes discipline and time management skills to stay on track.
What Does Financial Freedom Give You?
Many amazing things can be gained from not having monetary worries.
Making your own choices can be a huge priority for some people. You will be able to do whatever you want, wherever and whenever you want. Having control over your finances gives you the freedom to spend your money as you please and live how you want. It also allows for the creation of wealth that can be used for many different things.
When you are financially free, you have time on your hands to do things that you have never been able to because of working too much or owing too much money. You have the freedom to explore new hobbies that may be more interesting or benefit more people than what you are currently doing. You can start a new business and make a living out of it, which usually takes a lot of time and money. You can also use that time to help others in need.
You do not have to work for money anymore if you choose to be financially free. The most widely known way of being financially free is through “financial independence” (FI), which means reaching the point where you can live off the investments you have made without working for money anymore.
By not having to work for money anymore, you have time on your hands to do what you want and to help others. You can travel the world, go on vacations and not work at all while still earning a salary. It can be beneficial if you like the routines of working a lot, but you would still like to travel around and explore the world without paying a company for the right to do so.
Being financially free can also be emotional and mentally beneficial. You have the freedom to pursue your interests and to do what you want when you want, without the stress and struggle of a job that may not pay you enough, or is not rewarding or both.
Why is Financial Freedom Important?
By becoming financially free, you gain much more than control over your own financial life. If a person is financially irresponsible and does not have enough money to live comfortably, they will find it difficult to be truly happy.
The desire for money, or what is commonly called “the rat race“, makes most people unhappy because they are constantly worried about how to make the next dollar (or in some cases, the next euro) and the nagging feeling that their lifestyle should be better or more comfortable.
For that reason, the desire for financial freedom is essential. Being financially free will give you a chance to be happy and free from the stress of work that many people experience.
It will also allow you to travel the world, explore new hobbies, become involved with new projects, and do things that make you happy instead of the many things that make you stressed and uncomfortable.
How can I get Financial Freedom in My Life?
There are many different approaches to achieving financial freedom. They all depend on having basic financial knowledge and skills, discipline, and time management. Here are some of the most popular techniques that can help you achieve financial freedom:
1. Determine Your Number
First, you need to determine where you are financial. Many people get confused because they lack a clear view of their financial situation.
To start, you need to collect all the necessary information about your current situation, preferably with the help of a qualified financial advisor.
2. Address Limiting Beliefs About Money & Basic Money-Management Skills
Money is not the only thing that can make you unhappy. If you think that “money solves all problems”, you will be disappointed most of the time because money cannot solve all problems (it cannot stop a headache or cancer). But it can help you improve your quality of life and make it easier to recover from adverse situations.
Before starting the process, you need to address limiting beliefs about money and basic money management skills.
3. Get a Handle On Your Finances
Once you know the amount of money you are making and the situations around your finances, it is essential to handle your finances. There are many different ways to do this, but you will have to choose one that works for you.
4. Create A Short-Term Strategy For Building Savings & Reducing Debt
Once you have a handle on your finances, it is time to create a strategy. It is essential to carefully plan your current and future financial status to achieve that goal of financial Independence.
5. Create The Machine
Once you have a plan and financial strategy, it is time to build the machine. Making the machine is a life-long process that you must always stay on top of. Many things can go wrong and stop the engine from moving forward, so it is essential to stay focused.
With some work, determination, and perseverance, most people will attain their financial goals.
6. Evaluate And Make Changes
It is important to evaluate your progress from time to time and make minor changes when necessary. It is a part of the process that many people forget because they are too busy or misjudge their progress. Sometimes, minor changes can have big impacts.
How Does it Feel to Have Financial Freedom?
1. Enormous Relief
When you decide to become financially free, it is a big decision. You are about to take control of your life and make profound changes that will impact your future finances and, in some cases, the way you look at money. When people change their views about money, they often change their spending and saving habits, which can affect their whole life.
Another familiar feeling is peace because you will not have to worry anymore about making money and reaching your goals. Most people struggle with either the desire for money or the struggle of making the next dollar to get a better lifestyle. The financial freedom process takes away those issues and gives you peace.
3. Higher Self-Esteem
As you become more financially free, you will gain higher self-esteem. You will realize that you can do things on your own and achieve your goals without dependency on others or external forces affecting your life. Your sense of independence will significantly increase.
4. More Free Time
When you become financially free, the time will be there for you to do what you want, when you want. You can work as little or as much as you want, or not work at all if that’s your desire. You’ll have more free time to do the activities and things that bring enjoyment and fulfilment. What’s more, this time can also be used for other functions, such as family obligations and recreational activities.
5. Fluid State
When you become financially free, your financial situation will be more fluid and flexible. You have the freedom to change jobs, move to another city, or even go back to school and get a degree. You’ll be able to work in the field you want or run your own business.
My Final Thoughts on How Being Financially Free Changes Your Life
Earning and saving money takes effort and sacrifice. And that is what makes this process challenging. You have to stop thinking about your lifestyle and start thinking about your long-term financial future. If there are times where you feel discouraged, remember this:
“When you have eliminated the impossible from your life, then whatever remains, no matter how improbable, is what truly happens.”
How do you think about your financial future? Do you think financial freedom is a practical goal for you? How did financial freedom change your life? Let me know your views on this topic please. Also, if you have any other tips on achieving financial freedom, please add a comment in the section below.
Thank you very much and have a great day.