There is a very thin line between financial freedom and financial independence. Many people interchange financial freedom with financial independence.
Actually, financial freedom refers to your flexibility as to when and how do you want to work? It also brings in the confidence that you can pave a smooth the way for your life without being dependent on anyone to pay you a salary.
Financial freedom is deciding on how much money do you want in a month to fulfil your needs. With setting up a limit, you have to work on strategies to ensure that you receive that particular set amount every month.
If you give yourself the required time and set your goals in a realistic manner, you can achieve your goals effectively.
Financial freedom has got different meanings for everybody. For some, it can be the freedom to quit your job anytime you want and still be able to meet your expenses, while some may work very little and still fulfil their big financial dreams.
Your financial freedom level also depends on the level of life you lead in relation to your wants. For example, you can borrow debt consolidation loans for bad credit and become debt free. This will help you attain financial freedom.
Being financially free can impact your daily life and may have consequences as well. But, if you manage your finances effectively, you can achieve financial freedom effectively.
Security is one of the basic necessities of a human being. It decides our decisions and attitude in life. Without having a secure feeling in life, most people backslide the survival mode.
People usually fail to achieve what they want and desire in life with insecurities around them. The stress level increases with failures and insecurities and leads to a worrisome future.
Many people just live hand to mouth and do not have even a single penny extra to spend in a month. Also, if there is a debt cycle going on, it makes the situation more difficult and tedious.
It is unimaginable to be in this situation and still feel happy and content. It also hampers the ability to take care of your family correctly.
Now, if you have sufficient funds to fulfil your monthly demands and you are not afraid to leave your job if required, it will be a blissful situation. Getting free from this burden and tension is one of the most significant benefits of financial freedom.
If you have lesser stress and you are doing something that you love, you love your work more. If you have achieved financial freedom, you will enjoy your work for the rest of your life as you have finally found your passion.
People spend their whole lives finding their passion and if you have found it, consider yourself lucky. With financial freedom, you do not have to work on things you dislike.
Instead, you work on things you really like doing to ensure productivity.
Financial freedom is different from financial independence and gives you the liberty to choose your work schedule and routine.
For example, some people who have financial freedom may continue practising medicine for their passion. In contrast, others may take voluntary retirement from their job to pursue their passion and interest.
In both cases, there is financial freedom, and it has given them to make their financial choices.
In the literal sense, financial freedom is freeing up your time to do whatever you want and yet do not feel stressed about your financial status.
As mentioned above, with financial freedom comes the liberty to pursue your passion and dreams. Many people pursue their dreams and lead peaceful and comfortable life.
You can spend less time at work and think about work, which gives you more time to spend with your family.
There may be some of your passions that have been suppressed with time and financial burden. Financial freedom allows you to follow your dreams and passion.
Now that you have made your own work decisions, you can choose to do things that make you happy and align with your values. If you are into a profession, you do not have to drive that profession for profits. You can make ethical decisions.
For example, if you practice medicine, you do not work with a profit motive; you can do selfless service and contribute to society. This way, you are aligning your actions with your values.
With this approach, you can help people who are not able to afford it and may need it the most. This way, you are being ethical and also helping the needy around you.
You can pursue your passion and not work and yet be stress-free getting food for your family. You can make choices that satiate your passion and values.
With financial freedom in your life, you can take more risks than ever and try new things in life. Some people may decide to change their country and shift to a new country, while some may decide to start up a charitable organization.
Financial freedom allows you to take more risks and be adventurous in life. You are free to live the way you want. If you feel any financial risk, you can borrow personal loans for poor credit. These loans will help you fight against risk and keep you stress-free.
Your financial freedom is directly linked to your work performance. With financial freedom, you tend to perform well and in an efficient way leading to your professional success.
When you do not have a fear of getting things wrong or losing out on your job, your productivity increases and you outperform. Most of us are careful while working, and many factors are playing subconsciously, such as the fear of losing a job, fear of making less money etc.
With these constant fears, it usually turns out a mess. In the absence of these fears and financial freedom, you can take your own time to work and be successful.
Your children are one of the essential things in your life, and you may be worried about their future. Many parents work hard to ensure a successful and secure future for their children.
If you are financially free, you can work on securing your children’s future without pressurizing your present. Also, you can guide your children as well to attain financial freedom.
Financial freedom gives you the freedom to make your own decision and live a carefree life. You can control the reigns of your finances.
It is essential to ensure that you do not waste money and spend it on basic necessities with financial freedom.
You can work on building your other streams of income to achieve financial freedom early in life.