Good news, the answer is NO!
Our culture has taught us to envy the mansions, cars, boats and fashion of the celebrities. We idolize the lifestyle they have. We imagine with such lifestyles they must be happy.
The truth is many rich people do not have freedom from stress and anxiety. In fact, many rich people spend a lot of time doing things they’d rather not do. In addition, many don’t even have a solid plan for their finances. It is amazing how many go bankrupt after making millions and millions of dollars.
Conversely, some people are quite content with a simpler lifestyle that doesn’t require much income each month. These people find financial freedom in a net worth well below millionaire status.
Okay. Being rich is not a requirement for financial freedom. That’s good. But just what is the difference?
Defining “Rich”
According to Merriam Webster Dictionary:
Rich: having abundant possessions and especially material wealth
The problem with that definition is that it is very relative. Abundant possessions and wealth compared to what or whom? Compared to the average villager in Haiti, most of us are very rich.
Or is abundance a mindset?
There is a famous story of the ultra-rich American businessman, John D Rockefeller. According to the story he was once asked, “How much is enough?” J.D. answered “Just a little bit more.”
The way I see it no matter how abundant your possessions are, if you’re tied to a stressful job 80 hours a week…you don’t really have financial freedom.
I’m guessing that you’re reading this because you seek freedom more than riches. All the money in the world doesn’t matter if you aren’t free to spend time and energy on the things that make you happy, right?!
So what’s that look like?
Defining Financial Freedom
Merriam Webster Dictionary doesn’t have a definition for financial freedom. That means we get to define it ourselves.
Financial freedom could mean:
- Early retirement
- More travel
- Ability to help others
- Escape from a job
- Ability to live near the beach
- Being able to spend more time at a non-profit organization
Financial freedom looks different to each of us. The good news is that we don’t necessarily have to wait until we’ve saved up millions of dollars to enjoy financial freedom.
Depending on your goal, just being frugal could give you the freedom you desire. ALWAYS spend less than you earn. Wait for an item to go on sale. Don’t buy what you don’t really need. Small savings add up.
In conclusion…
For me, financial freedom means I have enough saved up to maintain my family’s current lifestyle for a couple years without taking another job. Just knowing that takes some stress away and gives me courage and confidence in my current job.
I am on the path to complete financial independence—and it sure is a good feeling to have reached some financial freedom on the way.
What does financial freedom mean to you?
Our family finances have always been a priority to you and for that I am grateful! I am again on board with you as you share your ideas with others so they too can have a game plan to eliminate debt and live a life of financial freedom. Keep up the good work my love!
Thanks Bec. It’s a team effort!!