Financial freedom means peace of mind in financial way only, and this boil down to having good financial plan has stated in my early write up

Financial Freedom is defined as the ability to acquire the lifestyle that you want without worrying on your finances because you have achieved financial stability and security.

To clearly illustrate my point, if I tell you that today will be the last day you are employed. The company you are working with suddenly fell into bankruptcy and can no longer sustain its operation, what will you feel? Or if you were fired because the company is cutting its cost, how will you act upon it?

If you felt scared and worried with the news because you don’t have enough savings to sustain your needs, or worse, you are filled with debts that you can’t be unemployed, then you are financially broke even how high your current salary is now, and even though you have owned many “assets” or properties.

But if your action and feeling was relaxed and calmed, you are perfectly okay with the thought of being unemployed for awhile because you were able to save enough money which can sustain your needs for more than one year, plus you don’t have debt to worry about, then you are financially okay, no matter how small you earn and how little your assets are.

Either situation has not attained financial freedom. But if I ask you, which is better, high salary but financially broke or low salary but financially okay, what will you choose?

Whatever your choice is, take this time to have self-analysis on what kind of financial status do you currently have. This is financial freedom. It’s just most people do not realize how to get there. It’s amazing once you do. The feeling is like you are living at home with your parents again and not having to worry as a kid what was going on with the mortgage or anything else financially. Thinking that no one can take away your house, cars and possessions, since no one owns them except you. Knowing that in “Bad” times, that you can keep going with the lifestyle you have created for yourself and reap some of the benefits of falling prices/discounts because you have the cash. It’s all about being frugal, making smart decisions, and sacrifice. Slow and steady wins the race!

Importance of Financial Freedom

Two key notes you have to remember about financial freedom:

1) Ability to Live the Lifestyle that You want, author of the best-selling book, like Robert kiyasaki have said,

“Being financially rich and having the ability to live like a millionaire are fundamentally two very different things”.

There are a lot of people who are financially rich and stable, yet they are too busy working that they don’t have time to enjoy their richness. They can’t afford to take a day off and just enjoy life.

If you attain financial freedom, you are able to live the lifestyle that you want. What does it mean? It means you can afford to take a day off and do whatever you wish without worrying about your work or finances. You can buy things you want and need, you can visit places anytime, plus you have the luxury of choice on how you will spend your time.

I know this may sound impossible, especially for people who are trapped in the 8-hour, 5 days cycle. But if you have achieved this kind of financial freedom, probably, you are nodding in agreement.

2) No Financial Worries and Problems

Another advantage of financial freedom is the elimination of financial stress and worries.

People who are able to attain financial freedom have high ability to manage their finances and have great skills in generating money.

These two characteristics are the one you should strive to develop if you want to attain financial freedom, (1) manage your money and (2) develop a skill of generating money.

When you develop these two characteristic, you will never worry about money.

Remember, money without time does not represent life richness. Because why is it a lot of wealthy people are not happy with their life? Because the key to financial freedom is not money alone, it’s the ability to have both money and time.

The day I’ve learned the importance of financial freedom, it changes all the anxiety and stress of my life. Understanding financial freedom opt me to act on my financial status instead of worrying about it. Believing in the importance of financial freedom has created so much positive changes in my life, financially, lifestyle, mentally, emotionally and even physically. And at the same time, it helped me developed my spirituality, by being more appreciative to life and having high hopes in its miracles. And that’s what I hope will happen to you as well.

However, note this below it will help you:

“Money alone isn’t the solution to people’s worry and stress. Most part of it is laziness. The usual excuse of “if only”. Like, “If only I had more money”. Because if only is the easiest way to postpone the intense self-examination and decision making necessary to create a life of enjoyment now, and not later. It’s the usual excuse of not acting.”