What Is Financial Freedom 2011?

What is Financial Freedom?

The answer to this question although simple has been the cause of much confusion and miss-information.

Over the years I have read and heard many different and varied definitions that highlight the confusion around this subject.

Financial freedom isn’t the same as being rich. Although people often confuse the two, they are completely separate goals. One person could be completely financially free earning $15,000 per year. Another person could be trapped, even with a 20 million dollar portfolio.

And I have seen examples of both that are equally stunning.

What is the Need For Financial Freedom?

To clearly illustrate this 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 Financial freedom 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.

The life savings of the average 50-year-old is $2300!

You can not last long on this sort of money. Worse still with almost 100% of disposable income now being taken by debt any hiccup in your employment, no matter how short has dire financial consequences.

Financial Freedom

I define Financial Freedom as the ability to acquire the lifestyle that you want on a sustainable basis.