Financial Freedom is NOT:
– being debt free
– having 6 months worth of expenses in savings
– investing in real estate
– hitting $1 million in your retirement account
– never having to worry about money again
Before I go too far, I have to reiterate that THERE IS NO SUCH THING AS FINANCIAL FREEDOM. It is an illusion.
But, that said, there is financial independence, which is when you have more than enough income coming in (without working a job) to cover your expenses.
You may find you have some or almost all of the above when you reach financial independence. But, you will also have:
– documents to let everyone know what you want done with your assets in case you cannot make those decisions yourself, as well as after you die
– a solid plan for how you are going to accrue wealth
– diversified investments, most of which outpace inflation
– trusted advisors who will help you not only build your wealth, but also teach you and your heirs so your wealth does not die with you
– multiple revenue sources
– the ability to enjoy your life and build memories with loved ones while you accomplish your goals
As you can see, it takes a team to help you accomplish your goals so please do not go into this thinking you can do it completely on your own or that having a CPA, financial planner, or financial advisor will be enough.
And, you will want to at least be financially literate, preferably financially fluent, to make it less likely that you will be taken advantage of.
Is financial independence one of your goals?