Definition of Financial Freedom
Financial freedom is a word that has taken primacy in the 21st century. It is a term that describes a lifestyle that is organically planned where no one is required to work for income to cover their expenses. Financial freedom perpetuates that one can be free of the responsibilities of money as long as he has set a life defining plan to handle his finances.
This concept does not mean that one is free of debt. However, it contends that debt can be defined as an expense. While debt is a constant financial consideration, a person who has acquired financial freedom is allowed to mark debt as a part of his expenses rather than a weight to his financial goals.
Being financially free is a misconception for being rich. While we know that rich people have a number of million dollars in account, their overhead long run costs could mean that they are not as financially independent as they seem. Therefore this concept is a concept attuned to your lifestyle and the amount of money you have to cover it. In this perspective, financial freedom is not as hard to achieve as first imagined.
Financial Freedom is Time Freedom
For other people, to be financially free is equivalent to having an expanded Financial freedom leisure time. The concept of time is money comes into play. In reality, a financially independent person will see that money is time. Once you are able to develop a sense of time freedom, then that means you are in a positive direction to acquire financial independence.
This principle makes ones finances less of a concern. Defined differently, financial freedom allows someone to take time on activities without trading your free time for income. It hinges on tradable assets that compound over time to cover for regular expenses. Thus, wealth is created which generates more time and money. It allows people to cut their working hours with no loss of income because of money making activities.
Achieving Financial Freedom
This idea requires a different mindset. In our classic college education, we are taught to work for money. Therefore, we put in time to work and then we get our wage. This is the famous time for money swap. However, financial freedom removes the concept of time-and-money-swap and allows an individual to make money work for them.