Achieve Financial Freedom - Pursue your Dreams and Enjoy Your Life
Financial independence or “financial freedom” is a state of being where you can finance your own consumption needs to maintain your chosen lifestyle without feeling constrained over not having enough money.
Why is financial independence or financial freedom a goal worthy of attainment?
When people achieve financial independence, what they really achieve is peace of mind. Once people achieve financial independence, they can go on to pursue their dreams and enjoy their life without having to worry about money.
The purpose of this article is to help you understand why some people are more successful than others when it comes to money so that you will have the potential to achieve your goal of financial independence.
First, what is required to achieve financial independence?
Financially, the amount of wealth required to achieve financial independence can be expressed as a specific dollar amount to provide an income to maintain your chosen lifestyle for the rest of your life.
The amount of wealth required to achieve financial independence depends on your ability to build up retirement accumulations sufficiently large enough to generate the income required to provide for your consumption needs today while maintaining your standard of living over the course of your retirement lifespan.
Sounds easy enough right? Just contribute as much as you can to your 401(k) or other company retirement plan and you'll be fine. Better yet if your employer matches contributions. What else could you possibly need to know about retirement planning?
Well, if it was really that easy, 58 percent of households with at least one member who is age 65 would not depend on Social Security for 50 percent or more of their income.
The fact is that most people go through life without any lessons whatsoever in personal finance or money management. Even in the best school districts across the country, children can go through twelve grades of school without receiving even a basic financial education in personal finance or money management.
Through to the age of 16 to 18, most children are dependent on their parents for financial support. After that, they learn how to become independent by getting a job or by going to college to learn how to get a job. What most people really learn is how to support themselves financially with the money they earn through wages or self-employment. Some people make a lot more than others but who ever teaches anyone how to become financially independent? Most people depend on a job to provide the income they need to survive and before they know it, they are in their late fifties or early sixties. Unfortunately, most people do not know what they do not know and by the time they finally figure it out, it is too late.
So, why are some people more successful than others when it comes to money and achieving financial independence?
First, successful individuals understand the importance of planning.
They know that to achieve financial independence, they must have a plan. Successful people plan to achieve financial independence. They do it on purpose.
Many of the those who go on to achieve financial independence work with others who can help them reach their goals. They read books, educate themselves and learn how to manage their finances successfully.
Achieving financial independence does not happen overnight or by accident.
Second, successful individuals know what they will have to risk to ultimately get what they want.
Are you clear about what resources are available to you and what you are willing to risk to ultimately get what you want?
Once you know the answers to these questions, put your answers in writing. Then, talk to someone about your dreams. Share your goals and your dreams with those who will be supportive and hold you accountable for your ambitions. Knowing you have the support of others will add a add a level of disciple as you progress towards the achievement of major milestones.
To reach your goal of financial freedom, you must have a plan. And it must be built on a solid foundation - a foundation of reality, resources, risk and resolve.
Return from Financial Freedom to Retirement