Can you survive financially if you lose your job?
What is the meaning of Financial Freedom?
Maslow considers financial needs as a level II need on his hierarchical scale. A broader perspective for this is, instead, to consider financial freedom. Financial freedom refers to reaching a level of financial assets, money, where one does not need to work any longer to meet one basic financial need. This dollar amount will vary depending on the individual. For one person, five million dollars—investing properly to generate a 10% Return on Investing, ROI—will be enough to obtain financial freedom, while others will assess their need at hundreds of millions to reach their version of financial freedom. The actual dollar amount depends on the individuals, but we find most people grossly overestimate this number.
There are several studies that show that additional financial health does not provide any corresponding increase in happiness. In contrast, consider a monk living in a convent with no financial assets to his name. For this monk, financial freedom is no monetary concerns. While I am not suggesting that we should all join a convent, I offer this example to demonstrate that financial freedom does not have to be an outrageous amount. Once you have defined what the amount to obtain financial freedom will be for your personal situation, you develop a plan to accomplish it and focus on living in the present while simultaneously working on this goal.
Financial freedom will eliminate a lot of stress associated with monetary concerns. Tony Robbins, in his book, Money Master the Game, explains seven simple steps to obtaining financial freedom. Robbins argues that one must learn to play the game. If one is going to play in the game, then one must not only know the rules of the game but master the game. He then goes on to explain that acting is super important to any action plan. Most people will not execute their plan; consequently, their plans will be just that: plans that never get done. He advises setting money aside and investing. Investing in the right portfolio is a sure way to build your financial freedom. Learn about compounding interest and how it can be used to accumulate wealth. He recommends investing like a billionaire. Billionaires invest their money in a different way than ordinary people; if one desires the returns these people get, then one must invest as they do. In the end, he said it is not about money; it is about living your best life. Money is simply a tool to help you do this. By obtaining financial freedom, this aspect of your life will be set. Remember: it is not about accumulating as much money as you can. This will just lead to a life spent in the search for wealth, and one will miss the important things of the journey.
Happy people share similar traits: nurturing relationships, gratitude, helping others, being optimistic. It is not about money, material things, or beauty; it is about mindful and present living. Financial freedom can be obtained by learning all aspects of how money is made, how it is grown, and how it is invested. One will need to spend some time mastering these components. These are not exceedingly difficult and simple mathematics will allow you to put a plan together to get to your financial freedom number. Once the detailed plan is developed, one needs to execute it religiously. Financial freedom will give you peace of mind and the time to pursue all other important factors of happiness. Financial freedom is a cornerstone of your overall holistic happiness.