When we think of what it means to be financially free, we think of all the things that our money can buy. Houses, cars, expensive travel accommodations, luxury items and designer clothes. These are the things in life that come with a price tag, and when we spend money on these things, it chips away at the wealth we’ve created for ourselves. How are we to build a mountain of wealth if we’re constantly breaking it down? It’s time to splurge on happiness, not on possessions.
Let’s start by redefining the term “wealth”. Think of wealth in terms of the quality of your life, and not quantity of your possessions. If you spend your time doing what you love and what you’re passionate about and you spend your time with people you love, you can consider yourself a wealthy person. If you have accumulated a lot of “things” in your life by working a job that you dislike, then it’s possible that you’ve been sacrificing too much of your happiness for these possessions. Learn to become financially free by simplifying your life.
In the short video clip below, Kate Northrup of Financial Freedom Fridays outlines what it means to achieve financial freedom, and what steps should be taken to arrive there. A lot of people say that they want financial freedom, but they don’t really know what the term means. Watch as Kate offers her definition of financial freedom and what this can mean for you.
Kate defines financial freedom as having enough passive or residual income to cover your living expenses. Being financially free does not mean owning a mansion on a hill, a Mercedes, or even a jet. It means that you are able to live the life that you want to live within your means, and have the time to spend how you want to spend it. You get to wake up in the morning and spend your day doing what you love to do. Financial freedom means that you’re not bound to objects or places, you have the choice to do what you want with your life.
Steps to Becoming Financially Free
You can become closer to being financially independent in just two simple steps. The first step is to increase your residual or passive income. Network marketing, or multi-level marketing, is a means in which you can make residual income over time. This is not a get-rich-quick formula; remember that network marketing takes time and hard work to build your downline and increase your customer base, but the passive income you receive once this is accomplished will get your closer to the financial independence you seek.
Before entering into a network marketing company, remember to do your research. You don’t want to end up selling a product in an oversaturated market, or something that doesn’t excite you. Find what it is that moves you, something that you’re truly passionate about, so you can spend every day doing what you love and spreading your passion. Remember that 9-5 office job that you didn’t find rewarding? You spent about a third of your waking life in that office, but now you’re able to enjoy your freedom. When you spend your time doing what you love, your offering one of the greatest services to yourself and the world around you.
The second step is to decrease your living expenses so you’re not tied down to your debts. Look around you. What is it in your life that you consider truly valuable? Look for the things in life that are deeply meaningful, things that bring fulfillment into your life. Everything else is just clutter. Decrease the clutter, increase your financial flexibility.
What to Consider in Your Quest for Financial Freedom
Now that you’ve made the decision to unburden yourself financially, remember to answer a few important questions and to never lose sight of the answers along the way. First figure out what your freedom number is. Your freedom number is the amount of passive or residual income you need to be free, or the number it is that you need in order to cover your living expenses. Then articulate the why. Why do you want financial freedom? What is it you want to do with your freedom? What motivates you, drives you to being financially unburdened? Lastly, look at ways to create your passive or residual income and make sure that it is something you are truly passionate about.
Remember that life is worth living, and every minute that you spend doing the things you love is a step toward fulfillment. Strip all the clutter from your life and focus on the things that truly matter. Learn to release the burdens of daily toil and over-consumption by setting up a financially free lifestyle. Go ahead, splurge on happiness.