If you were to have an audit of your financial situation today, would you consider yourself financially free? Financial freedom may appear to be a complicated principle without the right mental shift. It involves a lot of different approaches to your lifestyle. By turning goals into reality and acting responsibly, there’ll be no one who can stop you from being financially independent.
Financial freedom describes a lifestyle whereby a person is not required to work for income to cover his/her expenses. It does not necessarily mean that the person is debt-free. He/She simply uses debt as a leverage so that he/she can invest in more profitable opportunities.
A rich person doesn’t automatically become financially free. While financial freedom can be measured through one’s monetary standing, it is ultimately our attitude towards money that defines us. For instance, you have a million dollars in your account, a mansion and several sports cars. If you factor in the costs to maintain your so-called assets over the course of five years, you may find that a million dollars plus interest won’t cover all the expenses.
The Value of Money
Money is a vehicle to make your life and our system work. In other words, it is a means to an end. Many people do not see money correctly. It definitely pays the bills, but what else do you use your money for? The truth is, money is a vehicle not only to make a living, but also to make a quality life. Learning to value money gives us a perspective that makes us responsible with our finances.
Make Your Money Work Hard for You
You should not work hard for money. Money should work hard for you instead. While being industrious is commendable, working hard all your life is not. Doing the routine of paying bills and waiting for the next paycheck is not fun at all. Do not get stuck in the rat race and become a slave for money like many others do. Empower yourself by setting aside a certain amount of your earnings and investing it.
Love of Money is the Root of all Evil
This saying holds true to this day. But financial freedom is not love for money. Freedom over money is about seeing money as a tool and a means to and end. In fact, those who are financially free are the ones who have fewer problems and are more likely to give back to the community.
Meanwhile, love for money is seeing money as the end. Being a slave for money is not financial freedom.
If you want to be financially free, you have to change your mindset and your lifestyle. It is not easy to do and will require a lot of patience. Even so, it will be well worth it in the end.