Ask people to define financial freedom and you will get a different answer each time. What is the first thing that comes to your mind?
To some, financial freedom means being able to afford such things as lavish vacations, expensive cars, boats, expensive clothes, jewelry, or luxurious homes. Their definition of financial freedom is having money to burn.
Then there are those who see financial freedom as being completely debt free and owning all of their possessions with no mortgage, credit card payments, or car payments. The thought of never receiving another statement or having to pay high interest, to them, is freedom. They define financial freedom as having no bills to pay.
Many believe that earning a decent salary is financial freedom. Being able to easily cover all expenses and still have enough to enjoy good vacations while also being able to handle most emergency situations without putting a strain on their budget. Financial freedom to them means earning a salary that allows them to live comfortably.
Others see financial freedom as having enough money to retire for the rest of their lives. No daily commute, demanding boss, or deadlines to face. Being able to sleep as late as they want or stay up as long as they want and the ability to pursue their interests and hobbies. Therefore, they see financial freedom as not having to work.
There are also those who view financial freedom as having an extra income, adding to their present income to boost their financial status. They search daily for low risk, high return investments hoping to fall into a fantastic deal that will put them into a higher financial bracket. They define financial freedom as having an additional income.
A lot of people believe a well-padded nest-egg is financial freedom. Having enough money to enjoy a good retirement is a great concern for many. Some people pinch and save most of their lives, padding their retirement account. They believe financial freedom means having a huge retirement plan.
Nevertheless, there are some who actually believe financial freedom is having nothing at all. They work for cash, staying under the government’s radar. Rather than carry the burdens associated with owning and maintaining a car, they take the bus or simply bum a ride. Their definition of financial freedom is having no possessions other than bare essentials.
Financial freedom means different things to different people. How would you define financial freedom?