Financial freedom is a concept a lot of people think about, yet it’s hard to define. For some, financial freedom may be the ability to pay bills without having to work. Others may consider it the ability to work at a job they love or being able to support a particular cause.
Let’s take a look at what financial freedom may mean for you as well as some ways to achieve this goal.
Know what you want to accomplish.
If you didn’t know where you wanted to go on vacation, you could spend your weekend or your week driving aimlessly on the highway before coming back home. While it was nice that you had an idea of what you wanted, a lack of planning held you back from realizing your dream trip.
The same concept is true for your money. It’s nice to think about making money or having enough money to last a lifetime but you need a plan to make it happen. Therefore, the first step in your journey to financial freedom is to write concrete goals and how you will achieve them.
Rodney Brooks, of the New York Times published a book called ‘Is one million dollars enough?’ reminding us that there isn’t one answer for every scenario. Brooks points out, “If you want your retirement to be the same lifestyle as your working life, you must save and plan.”
Why is financial independence so important?
Financial independence can have an impact on all aspects of life. When you have enough money in the bank to survive a job loss, you won’t stress as much about an economic downturn or feel like you can’t change careers because of the financial instability it would cause.
For example, you may be able to weather the storm caused by an event such as the Brexit from the EU that will cause market instability for months or years to come.
Studies show when there is enough money to pay bills and provide your family, your marriage and other relationships tend to be stronger. There are fewer squabbles about paying bills or fighting about which person is failing to carry his or her weight when it comes to keeping the household going.
Your physical health also tends to be better when your financial health is strong. When you have money to see a doctor or go to the dentist on a regular basis, you can stop small issues from becoming larger ones. If you have insurance, you may be covered for regular checkups and dental cleanings, which limits your yearly expenditures on the routine maintenance that you need to stay healthy.
Who should I trust?
The best source of advice is from a fiduciary that by law must make decisions with your money that are truly in your best interest. Unfortunately, some brokers are more interested in selling a product you don’t need because they have limited resources of things they can sell under their umbrella.
It’s never too late to start learning how to manage your money.
There is never a bad time to learn more about your money and how to get the most out of it. Whether you are 25, 55 or 85, you can still help yourself find the financial freedom that you seek. Remember, every dollar that you invest today has the potential to grow exponentially in the future.
Schedule your free portfolio review to make sure you stay on track to accomplishing your goals regardless of what life throws at you.