When we are planning for our finances, we must decide how we will measure our success. One such measure is by achieving financial freedom, but what does financial freedom really mean? The term “financial freedom” is thrown around a lot by both traditional financial planners and investment advisers, as well as every infomercial get-rich-quick scheme. Typically, most of the schemes are using the term to mean being so rich you never have to work again. But really financial freedom means being released from uncertainty and being able to confidentially know that you will be able to meet your life goals.
This may mean that you have enough passive income (through pension, investments, business ownership, or real estate rental income) to finance your basic expenses. Or, it may mean that you simply know how to use your income, and investments, to create a life where financial issues are no longer holding you back from your goals. But what I think is not important — what does financial freedom mean to you? If you lived in a world where you KNEW that you were going to be able to reach your goals, and you knew exactly what to do to reach your goals, how would that feel? What words come to mind when you think of financial freedom?