Financial freedom is one of the least understood concepts in our society. Most people think it’s as simple as making money as your goal.
But that’s not all there is to it. Achieving financial freedom takes a lot of discipline, patience, and sacrifice. It means saving money, putting aside your wants, and even losing some of your money in the process. So, it’s important to think about why you’re doing it.
Ultimately, financial freedom is the state of having enough money on hand to afford the lifestyle you want for yourself and your family. It generally means having enough savings, investments, and cash on hand to be able to do whatever you want with your time. For others, this might mean being able to pay for their kids’ education or buy a new car or even travel around the world.
The idea of financial freedom ignites the aspirations of many people. It’s a goal everyone wants. But too many people fail to achieve financial freedom because not everyone is willing to work hard for it. There are those who feel contented with their present situation and there are those who would rather have the security of knowing that they will never be jobless, penniless, and homeless again.
For your financial goal to work, you must answer this question: Why do you want to achieve financial freedom? (Is it because you want to be able to travel the world, or retire early and spend your time doing what you love?)
The first step toward financial freedom is knowing exactly why you want it. Research has shown that focusing on the “why” of your goals can have a powerful effect on your motivation. You’ll find yourself working harder, sacrificing more, and going above and beyond to achieve your goals when they’re in line with your values. Trying to earn a lot of money so that you can spend it on yourself for lavish things will never get you there, as it’s not fulfilling enough and not hard enough — some people call this “selling out”. If you are just going to do it for little things without weighing what’s more important, then financial freedom may be within your grasp.
There are several reasons why people want to achieve financial freedom. For some, it’s simply for the fact that they want to take care of their loved ones, while others aspire to be free from their daily routines and to have enough money to do whatever they wish. The reality tells us the importance of financial freedom in our daily life circumstances. Every day, you are making choices, and most of those choices are based on your financial situation. For example, if you have enough money to buy a house and pay your bills, you could use that extra cash to start up a new business. If you don’t have any money to pay your bills or buy food, or even worse if you’re in debt, then the choice of venturing yourself into business would be out of the question.
Some people are happy just to have enough to cover their basic needs. They’re doing well if they can pay bills and have some extra spending cash. Others want more. They want to have enough money to do whatever they want, even if it’s something expensive or extravagant. Or maybe they’re looking for a way to keep their family secure and hence, they want a better life for themselves or their children. The reasons why you want financial freedom are as unique as you are. And those reasons will be the fuel that drives your journey toward wealth. You’ll be able to do the things you dreamed of when you were younger and had more time on your hands. You’ll have a financial safety net that will make it easier for you to pursue the career or retirement lifestyle of your choice.
It’s inevitable to make mistakes on the road to financial freedom, but knowing why you want it will help you push through any obstacles in your way and stay focused on your goal.