Definition of Financial Freedom
Financial freedom is a word that has taken primacy in the 21st century. It is a term that describes a way of life that is purely planned where no one is required to work for revenue to cover their expenses. Financial abundance perpetuates that one can be free of the responsibilities of money as long as he has set a life defining plan to handle his finances.
This concept does not mean that one is free of debt. However, it contends that debt can be defined as an expense. While debt is a constant financial consideration, a person who has acquired financial freedom is allowed to mark debt as a part of his expenses rather than a weight to his financial goals.
Being financially free is a misconception for being rich. While we know that rich people have a number of million dollars in account, their overhead long run costs could mean that they are not as financially independent as they seem. Therefore this concept is a concept familiar to your standard of living and the quantity of money you have to cover it. In this point of view, financial freedom is not as hard to achieve as first imagined.
Financial Freedom is Time Freedom
For other people, to be financially free is equivalent to having an expanded leisure time. The concept of time is money comes into play. In reality, a financially independent person will see that money is time. Once you are able to develop a sense of time freedom, then that means you are in a positive direction to acquire financial independence.
This principle makes ones finances less of a concern. Defined differently, financial freedom allows someone to take time on activities without trading your free time for income. It hinges on tradable assets that compound over time to cover for regular expenses. Thus, wealth is created which generates more time and money. It allows people to cut their working hours with no loss of income because of money making activities.
Achieving Financial Freedom
This idea requires a different mindset. In our classic college education, we are taught to work for money. Therefore, we put in time to work and then we get our income. This is the famous time for money swap. However, financial freedom removes the concept of time-and-money-swap and allows an individual to make money work for them.
Achieving this status involves a different shift in lifestyle and overall mindset. While it is easy to think about having more time to invest and create a business, most office workers still find that whatever amount of time that they have should be placed in a routine. A critical step in achieving financial independence is realizing that there are ways to make better use of ones time.
To achieve financial freedom, fundamental attitudes about the concept of money need to be changed. Realizing that wealth is only a mean to achieve an end is one thing. Knowing that no one should be judged depending on the amount of money they own is another. Judging this freedom as the amount of money held defeats the purpose because in the end, you will not achieve this if you are not satisfied with the money that you have. Remember that this concept is also a personal perception. This perception is highly related to the level of satisfaction that money brings.
On another side of the coin, we should also remove the negative perception of money. While the saying that “money is the root of all evil” seems appropriate, thinking that this is always the case will provide a repellent view about creating wealth. Always put into heart that financial freedom is a wholesome endeavour as long as one feels it is ethically good to make money. In the end, having the right attitude about money will go a long way in dealing with different perceptions of this concept. Financial abundance is ultimately a state of mind.