In a simple word, Financial Freedom is the accumulation of sufficient wealth to cover your living expenditures for the rest of your life. It means that you have saved enough money to cover all of your bills for the rest of your life. After that, you won’t have to worry about money.
How much money makes a person financially free is a debatable question but in the simplest form, once a person acquires 35-40 times their yearly expenses requirement, they are said to be financially free. However, in this article, we will discuss the top 5 reasons, most individuals should strive for financial independence early in life.
Benefit 1 : Money can buy Freedom in Life
We can argue that money is not everything in life, Yes, I do agree but it is certainly a very important factor!!
Many people do not feel FREE in their lives. They become money slaves because making money becomes their major aim in life. If we are not financially free then
• We can’t say NO to work
• We can’t say NO to our bosses
• We can’t say NO to the schedules
However, if we are financially free, We will have:
• Freedom of when to work
• Freedom of with whom to work with
• Freedom of when to wake up
• Freedom to go on holiday
If we want to experience all these (as mentioned above and more) freedom in life, we should work towards financial freedom.
Benefit 2 : Money can reduce stress and worry
If you lose your job and don’t get it in near future, how many years’ worth of expenses do you currently have?
1 yr
10 yr or
1 Month
And yes you need to include your outstanding home loan and other EMIs on top of that.
Seems Scary !!
The day we have enough money to support everything and live comfortably is the day we feel really safe and at peace.
Money does not solve all issues in life, but it does solve MONEY problems.
Benefit 3: Money can bring more power to our career
Most of us have to do things in life to earn money, not because we wish to do it. We are continuously looking for ways to boost our compensation package, even if it means avoiding activities that we would like to do if money were not an issue.
When we achieve financial freedom, we can do things just for the love of working and reaching greatness, and our job takes on a completely new vitality. We achieve more quickly, and our job happiness grows.
We should work like this, but it does not happen because MONEY stands in the way of what we truly want to achieve in life.
Benefit 4 : Money can give flexibility to pursue other passions
Financial Freedom also gives the freedom to pursue any long-due passion which we could not fulfil while in the regular job.
“What will you do once you are financially free?” I ask some of my investors. I receive some interesting responses, such as:
To become a yoga teacher
To teach underprivileged
To become a DJ
But the compulsion of “earning money” has crushed a lot of dreams. If we are financially free we can explore those new careers or opportunities without worrying for our next month’s expenses.
Benefit 5 : Money can be passed as a Legacy and build generational wealth
All our past generations, like grandparents, parents and now we ourselves worked for money...
What if we have sufficient money that our next generation is not required to work just for their basic needs. Can we have family legacy which takes care of at least the basic needs of our family?
There are many families where they work towards generational wealth. They have enough money which produces income for family, be it some business, equity wealth, real estate wealth or something else!
But lot of families are not able to create it because they don't have attitude like that. They earn and finish the money and at the family level they always are in that never-ending cycle.
If we achieve financial freedom early in life, there is a good chance that we may put a few seeds of generational wealth.
However, it is also very important to ensure that our next generation have the right attitude towards money.
Money is not everything, but as said above it can solve many of our daily life problems. By achieving financial freedom we can do as per our wishes and lead a stress-free life. By this, our next generation can also have a better and more comfortable life.
To achieve financial freedom we need to plan properly with the help of a financial expert.
