Achieving financial freedom has always been one of the main goals of many people, because it means having enough savings and cash to allow us to live the life we want with our loved ones.
Financial freedom translates into growing capital that allows us to retire without worrying about how we're going to pay the bills or how we're going to put food on the table. For many academics, financial freedom means that our money works for us.
But is that really the definition of financial freedom?
Let's analyze the following points:
1- You have a job where your income is considerable, although you do not like the work environment.
2- You are an entrepreneur who has a toxic client in your business book, but he represents 33% of your profits.
3- Although you are not passionate about your current career, it allows you to take 2 vacations a year.
4- You have a business partner who does not share your ethical values but is the one who puts up the capital.
the list goes on and on.
What would happen if you left that job, if you no longer had that toxic client, if you started a career that you are passionate about, or if you broke your business relationship with that partner? Yes, the answer is clear; you would no longer have that considerable income, that toxic client would no longer pay you, you could no longer take those 2 vacations a year or you would not have capital to continue operating your business.
So, what really is financial freedom?
Let us remember that the definition of freedom is: “the faculty and right of people to responsibly choose their own way of acting”. Therefore, if in the 4 points mentioned above you have economic gains, but you cannot freely choose how to act to obtain that income, I can assure you without fear of being wrong that financial freedom is not doing what you want to do when you want to do it. Real financial freedom is NOT DOING what you don't want to do when you don't want to do it and still stay financially strong.
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How to Pay Off Debt | RamseySolutions.com