Financial Freedom – Where Does it Lie?
“We cannot enjoy life if we are all the time worried about not having enough money.” – Brian Tracy, The Psychology of Achievement
The thing is, there are two financial aspects to this that are often confused. The two aspects are wants and needs. Financial freedom is somewhere between the two. Wants are the things that we do not actually need, but are in our eyes. These are things, of course, that are not an absolute requirement for our lives to be considered complete. They would be nice to have, but are not essential. But, needs are those things that we must have to survive. These usually consist of a home, food, and clothing, and maybe a vehicle. Plus enough money to cover utility bills. They are the must-haves of life for most people.
Now, somewhere between the two is the point of financial freedom. That is where there is enough money to survive, but with a decent amount left over to enjoy a few luxuries occasionally. In other words you have cash to spare! You are no longer in danger of losing your home, or worse! Maybe you might not have enough spare cash to go and buy a new car, just like that, but you could save for one. Financial freedom is also not necessarily being rich, as we might think. It is quite simply the ability to be able to set goals without worrying about money all the time. It is exactly what the phrase implies, freedom from any financial worry.