As a kid, many of us dream of becoming a doctor, astronaut, or a teacher. And as we all matured, some of us continued on that path while others were finding ways to be successful and become wealthy.
The problem with most of this generation though is that we have been programmed to think that our dream job includes working for someone else for 40+ years.
And although many of you will still love your job and will excel at it, you are limiting yourself to one source of income that requires you to be present or to rely on other people to pay the bills.
The real goal we should all be aiming for is financial freedom!
If you don’t have the dream of working 9-5 every day until you retire, then you already have the dream to attain financial freedom! You just needed a little push in the right direction!
Now let’s get into the question we all want to know the answer to: What Is Financial Freedom?
What Is Financial Freedom?
Financial freedom is defined in a variety of ways, but let’s simplify it to what the two terms mean individually.
Financial means the financial situation of an organization or individual.
This can solely mean money, but it could also relate to debt, savings, businesses you own, etc.
On the other hand, freedom means the power to do what you want without being restrained.
Now let’s combine them and we can answer what is financial freedom!
It is the power to go anywhere and do what you want on a daily basis without having to work long days or worrying about where the money is coming from.
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Many of us are caught in this cycle of working and saving up for a big trip, a car, or a house & that shows that we work for money.
Once you reach financial freedom, you are making money work for you!
Financial Freedom vs. Financial Independence
Now, after telling you what financial freedom is you may be asking “Isn’t that the same as financial independence?”
The short answer to that is no.
These terms often get tossed around in the same conversations and are seen as interchangeable, but they aren’t.
Although they do have similarities, they also have one big difference.
Both financial freedom and financial independence have to do with your personal financial situation and the ability to live your life without having to work everyday!
The difference is that when you reach financial independence, you have attained multiple streams of income that are able to fund your current lifestyle.
For example, maybe you own your own business and you have a few shares in some businesses that generate some passive income.
This is a great position to be in, but it isn’t enough to fund your current and future lifestyle. This is similar to retiring early and being able to live your life, but if you don’t continue to find more streams of income your earnings will stay stagnant.
Whereas, financial freedom allows you to live your current and future lifestyle without having to work everyday. And depending on where you have invested your money, this could also indicate that you are funding the lives of your family generations ahead of you!
For example, you might own 2-3 businesses, investments in real estate, and provide webinars online that are constantly generating money while you are on vacation, taking a nap, or having a family game night.
The way you reach this is by using a large percentage of your earnings and reinvesting that money back into your businesses and investments!
This creates a money generating cycle that will continue to grow overtime!
If you want to learn more about how to achieve this, make sure to sign up for our newsletter to be the first to know when our next article on different types of income and how you can achieve multiple streams of income will be released!
Until then, I hope you found this article helpful & would love to hear if you are looking to achieve financial freedom!
If so, tell me why you would love to be financially free in the comments below!
The motto at The Afro Column is “Support Each Other, Build Together”, so if you know someone that is trying to live a wealthy & free life, make sure to share this with them!