People talk about it all the time, but just what is financial freedom?
Today on The BIGG Success Show, we define financial freedom and discuss three ways to achieve it. Here’s a summary of that discussion.
What is financial freedom?
Our definition of financial freedom is:
Plenty of money…for life.
Let’s take this definition of financial freedom part-by-part.
First of all, let’s think about “plenty”.
Not enough. Plenty.
More than enough. An abundance.
It’s an individual thing.
- of money
Now let’s turn to the phrase “of money”. Money is a valuable commodity, because it makes exchanging easy.
Money equals wealth in our definition. We really mean wealth in all its forms. For example, a person may have plenty of cash, yet feel a sense of emptiness which more cash will not solve. Reconciling with God will yield dividends that reconciling your cash accounts can’t.
Our definition of money also calls for thinking about both the present and the future. You need money when you need money. You can’t pay bills with your house, your car, or any other asset. You need cash.
But while cash is invaluable when you need it, it is generally a poor investment long-term. Much of the interest you earn on cash is flushed down the drain for taxes and inflation. Other investments fare better. So cash costs you money in the long run.
So, our definition of financial freedom means being able to enjoy life more now and later.
- for life
This continues that last paragraph – you have enough money to live now and not wait for some artificially-set retirement date dictated by the government or an employer.
AND you have enough money to take care of your needs for the rest of your life. You don’t have to worry about running out of money.
Is it just a pipe dream?
We know – this all sounds great, right? But we can hear the mental objections. “Isn’t this about way off in the future?” “It probably involves a side hustle and I don’t have time for a side hustle.” Here’s the first thing to understand…
If you say it can’t happen to you, it won’t happen to you.
Like everyone else who has achieved financial freedom, you have to start where you are with what you have. And you must make the most of it.
That’s the price financial freedom demands.
It’s also the starting point on the journey to financial freedom.
The next steps
1) Look at your money flows
How much money do you have coming in? Where is it coming from?
How much do you have going out? Where is it going?
2) Benchmark your finances
Search for information about how much people spend, on average, in various categories. How do you stack up? Identify areas where you’re spending too much.
3) Develop an action plan
Once you know where you’re spending too much, map out actions you will take to cut costs in that area. And then, do it!
Success comes after Start (and not just in the dictionary)
Want a tool that guides you to financial freedom?
Our Financial Freedom Tool goes beyond what we described above about benchmarking so you can get to financial freedom faster! Learn more
Here’s to your BIGG success!
George “The Professor” & Mary-Lynn
Co-Founders, BIGG Success
Direct link to The BIGG Success Show audio file | podcast: