Close your eyes. What would you do if you didn’t have to worry about money?
For many people, that question is an abstract one. The most they can do is imagine what it would feel like to be financially secure to the extent that they could make life decisions without factoring a lack of money into the equation.
And yet… it doesn’t have to be abstract. What if I told you that true financial freedom is achievable for anybody? Would you believe me – or would you think I was pulling your leg?
It’s not a joke. I achieved financial freedom, and I do what I want to do, when I want to do it. You can do the same thing, but first – imagine it. What does financial freedom look like? I’m here to help you see it.
What Does It Mean to Have Financial Freedom?
How many hours a week do you work? If you’re like most people, you’re in the office or at a work site a minimum of 40 hours per week. That’s a lot of time. You might spend more of your waking hours with colleagues than you do with your family.
That’s the opposite of freedom. In fact, it’s not wrong to think of it as financial servitude. People who work a traditional day job (or night job, or swing shift job) trade their time for money.
The problem with that kind of work is that it’s limiting. Not only do you have to be in a certain place at a certain time on somebody else’s schedule, you also have to answer to somebody else. You do the work they tell you to do – how they tell you to do it – or you risk losing your job.
It’s limiting in another way, too. When you trade your time for money, then your income can only go so high. No matter how hard you work, there are only 24 hours in a day. You can’t work around the clock. You need luxuries like sleep, food, and time with your family.
I’m joking. Those things aren’t luxuries… they’re necessities. And they’re the real reason that you need financial freedom.
Financial freedom means working for yourself. It means doing the work that you want to do, when you want to do it. It means having the best boss you’ll ever have.
Even more importantly, it means not trading your time for money. That’s a losing proposition. Instead, financial freedom comes from having streams of passive income.
What Is Passive Income?
Passive income is the opposite of active income – the income you earn in exchange for your time and effort. That doesn’t mean that no effort is required to earn passive income, but it does mean that the effort you put in is usually on the front end.
Let me give you an example. Let’s say you had the money to buy a rental property. You spend the money on the house up front, and maybe you even spruce it up a bit by painting it and planting some flowers.
Those are some significant expenditures, but then you can start to earn that money back with very little effort on your part. When you rent the house, the tenants pay you rent every month. If you structure everything properly, the rent will more than cover your mortgage payment. That means you’ll pocket some profit each month.
Best of all, there’ll be months when you won’t have to do anything at all in return for the money you get other than heading to the bank to cash your check. And if they pay electronically, you won’t even have to do that!
So passive income is usually an income stream – a steady flow of money that ideally comes in without you having to do much to keep it flowing. You don’t have to report to an office every day or work 40 hours a week.
I’ll be telling you a lot more about how to earn passive income in the future, but for now, I just want you to understand that there’s another way. Instead of trading your time for money, you can make money that will allow you to reclaim your time. That’s the meaning of financial freedom.
Why Do You Want Financial Freedom?
Now that you know what financial freedom is and have an idea of how you can get it, let’s talk about why you really should want it. To answer that question, I’ll go back to the question I posed earlier: What would you do if you didn’t have to worry about money?
I can’t answer that question for you – I can’t read your mind – but I can tell you some of the things you might be able to do.
Buy Your Dream Home
A lot of people scrimp and save to buy a house, or they resign themselves to living in a tiny apartment. If you had real financial freedom, you could buy – or even build – the house you want. You wouldn’t have to worry about not being able to afford a nice place to live.
Buy Your Dream Car
Here again, the only real limit is what you want. Do you picture yourself behind the wheel of a flashy sports car? A sleek town car? Is a high-end minivan big enough for the whole family?
Whatever vehicle you want, when you have the financial freedom you can buy it. You won’t have to worry about keeping your old car running for another 100,000 miles. Instead, you can get rid of it and get a safe, reliable, beautiful car you love.
Pay For Your Kids College
If you worry that you won’t be able to afford to send your kids to college, you’re not alone. The cost of education is always rising and most people have two choices: to pay out of pocket or to commit themselves to tens of thousands of dollars in student loan debt.
Setting up passive income streams can make it easy to save money for your kids’ educations. When you’re not limited by the number of hours you work, you’ll have the ability to provide for your kids in the way you want to.
Spend Time With Your Family
Remember earlier when I pointed out that you might end up spending more of your waking hours with your work colleagues than with your family? That’s the biggest price you pay for trading your time for money.
If you had financial freedom, you wouldn’t have to make that trade. Instead, you’d be able to set your own hours and have all the quality time you could possibly want to spend with your family.
Imagine that. Time to go to your kids’ soccer games and dance recitals. Time to help them with their homework. Time to go out for a nice dinner with your spouse without having to get up early for work the next morning.
Who would you rather spend time with: your cranky, demanding boss, or your loving family? It’s an easy choice.
Travel Around The World
Travelling is expensive, yet it’s also a wonderful and enriching experience. But travelling when you’re chained to a desk is hard. Even if you get some paid vacation time, it’s probably limited to – at most – a few weeks a year.
When you have real financial freedom, you can travel anywhere you want. You could even live abroad if you wanted to. Imagine doing your job – the job you created – working from a beach in Tahiti or a café in Paris! That’s an achievable goal when you have financial freedom.
Do What You Love
Arguably the most important thing you can do when you have financial freedom is to do what you love. What might that mean? Only you can say, but here are some ideas.
Have you always wanted to improve your golf game? You could invest in top-quality clubs and hit the links several times a week with a golf pro to help you work on your swing.
Does taking art classes to appeal to you? You could sign up for classes, buy some oil paints, and spend your days painting landscapes – or even plan a trip to paint Monet’s gardens.
Would you like to earn an advanced college degree – or get your bachelor’s degree if you don’t already have it? You can attend the college of your choice and study whatever subject you choose.
These are just a few ideas. The real benefit of financial freedom, the biggest benefit, is that you get to choose your dreams. Your time is your own, and you can do whatever you want to do with it.
Financial freedom might seem like a fantasy, but it’s not. Anybody can achieve it, including you. All you need is the right tools, guidance, and inspiration – and I can help.
Look forward to more content in the future. Check out our other posts while you here.