If you see an ad for luxury boats for sale and you compare it to your wealth, you may not yet have financial freedom. How can we define
financial freedom? Why is financial freedom important? What are the stages to financial freedom and how can we achieve them? What is the most
important thing to remember to achieve financial freedom? Maybe this all represents everyone’s questions about financial freedom.
What does financial freedom mean?
achieving financial freedom means having sufficient savings, investments, and cash to finance the lifestyle we desire for ourselves and our
families, and having a growing source of income. This means that we are free to live the life we want without being tied down to having a job
and having to earn a certain amount of money every year.
Why is financial freedom important to you?
Financial freedom provides a certain peace and freedom for those who have it. Many people experience prolonged problems and unsettled minds
due to economic factors. Although money can’t buy happiness, it can give us opportunities that people who don’t have money may not have, and
money can also give us more choices than people who don’t have money. It is these opportunities and choices that can contribute to peace of
mind for us and our families.
What are the steps to financial freedom?
What are the steps to financial freedom?
1. Dependency – means you do not have financial independence. You still have to depend on others to fulfill all your needs.
2. Solvency – at this stage you begin to slowly explore the stage of financial independence. You can fulfill all your financial obligations,
needs, and desires well without the help of others.
3. Stability – the foundation of your financial independence becomes stronger at this stage.
4. Free Agency – you are at this level when you can live and work from wherever and however you want.
5. Security – this is the stage where you can feel real financial freedom. Here, your savings, retirement funds, and investment income can
all meet your needs for the rest of your life without having to work again.
6. Independence – If in the previous stage, you can have a basic standard of living, at this stage your retirement savings, emergency
savings, and income from your passive investments are enough to finance the entire lifestyle you want.
7. Abundance – At this stage, you are not only free to live the life you want, but you are also free to do whatever you want to do besides
your daily lifestyle.
