Financial freedom is having enough money and/or assets to provide a lifetime income at a level which provides a comfortable life. In other words, you have enough so you no longer need to think about making money if you choose not to.
According to Ebay, when someone is referred to as being “financially free,” it often means the person has significant savings or income, and thus has peace of mind and the satisfaction of being able to do what they want when they want to do it.
In other words, financial freedom is different according to different individuals. Some people can live on fifty million Rwanda francs for the rest of their lives while others need fifty times more depending on their lifestyle.
Ebay classifies total financial freedom in two types. That due to high net worth implies one has sufficient money in savings and investments to maintain his or her lifestyle without working, or working very little.
The second type is residual income where one will usually receive royalties when people purchase her products allowing the creator to have freedom to pursue other activities while still receiving an income. Such people can be musicians or writers.
Anyone who pursues financial freedom should know what they are aiming at. They should work our roughly how much they need to live off without a worry for the rest of their lives and have a plan at arriving and keeping oneself there.
Remember having a lump sum figure of let’s say one hundred million francs tat is unplanned is a recipe for disaster. One will buy their favorite car, there favorite house and will buy drinks for all their friends and in months, they will be broke!
Financial freedom helps one to achieve piece of mind where you can concentrate on strengthening your relationships and pursuing your passions. When people are under financial pressure, they often experience stress, worry and impaired relationships. Financial freedom reduces or eliminates those negative consequences.
Remember your pursuit for financial freedom is an individual passion, not to mean that it should be benefit anyone else but should be driven by individual will and passion. Do not be deceived by institutions that serenade you into the terms that they can deliver financial freedom for you.
Banks for example seek a profit and a dividend for its shareholders, so they can not give financial freedom when their owners do not have it. Be prudent in making the most of financial institutions but do not believe the marketing clichés but seek to read between the lines.