What does financial freedom mean to you? For some people, it means not living from payday to payday. For others, it means being able to enjoy a comfortable life free of financial stress. Often those who seek financial freedom don’t necessarily want to be millionaires; they just want to be able to spend money on things that give them an enjoyable life without having to worry about where the money is going to come from. There is a big difference between being wealthy and being financially free.
There is a big difference between being wealthy and being financially free. Just ask anybody who owns a large asset such as a business or a farm. Having a lot of money tied up in assets that require hard work for their value to be retained or that expose you to the risk of loss, is not financial freedom. To be truly financially free means that you have sufficient income to achieve your life goals and the standard of living that you want without effort or the risk of loss. If you have a high income and a high standard of living, but your income is earned by working, then you are not financially free as your income stops as soon as you stop working. Similarly, if you own a large business that requires significant effort from yourself to keep it going, then you are not financially free.