How to Achieve Financial Freedom (3 tips)

What is Financial Freedom? And more importantly, how do you achieve it? In this post we’ll explore what financial freedom is and 3 things you need to get closer to it.

Contents

Defining Financial Freedom

What it is not:

An unlimited supply of money
Buying anything you want at any time
Customizing your Lamborghini to match your outfit

What it is:

Enough money to cover your expenses and increase your wealth
Peace of mind that:
- You are not buried in bad debt
- You can enjoy occasional discretionary spending on things like an enjoyable meal, a holiday vacation, your hobbies, your family, and other things that matter to you
- You won’t stress out if you need to pay an emergency expense (car repair, medical bills)
Flexibility – This is the most important part
- Financial freedom buys you… well, freedom associated with your wealth
- Freedom to take a day off, freedom to travel the world, freedom to take control of your time and spend it how YOU want to

The Feeling of Financial Freedom

Financial freedom allows you to enjoy yourself without money (or lack thereof) being a constant burden on your life. You don’t need to be a billionaire or even millionaire to be financial free and enjoy the things you love.

Financial Freedom, to me, is different from financial independence.

Financial independence means you don’t need to rely on an employer or employment for income. In other words, you can live off of your investments and not your labor.

Financial freedom just means you can enjoy life without the crushing stress associated with money. Think of it as financial flexibility and having more options.

Now that you know what financial freedom is, you probably want to know if you can achieve it.

How to achieve financial freedom:

I’ve learned over the years that there are three key things you need to get closer to financial freedom:

1. Desire

Let’s face it folks. You won’t achieve what you don’t desire.

I am not an expert in red wine. However, I do enjoy the occasional glass of red wine… but I cannot accurately distinguish between merlot, cabernet sauvignon, or pinot noir by swishing it around my mouth a few times. I suppose if I had the desire to become an amateur sommelier, I could watch some Youtube videos, read some blog posts, crack open a few bottles, get drunk off my $%#, and have a good time. Hey, maybe I’ll learn a thing or two about wine while I’m at it!

The same really goes for financial freedom. Having the desire to achieve financial freedom is the first step to achieving it.

2. Knowledge

To do something (anything!) you will need to have the knowledge. Here at Wall Street Fat Cat, we’ll cover several topics to provide you with the knowledge to achieve financial freedom including:

How to set a budget
How to invest toward your goals
How to manage risk
How different investment vehicles work
What are the best investments
How to automate your investments
The power of compound interest
The power of inflation
How to eat cupcakes on the beach when you’re financially free

3. Prioritization

The last prerequisite to achieving financial freedom is getting your priorities straight. Oh, how many times I would walk by a sweet Nissan GT-R (valued at over $100,000) on the street, and think wow… must be awesome to have that car. The owner of that car has got it MADE! But then I think about how painful it must be to pay for insurance and repairs on such an expensive car. No thanks, I have higher priorities to spend my money on! Cupcakes, anyone?

The Bottom Line

Did you notice how NONE of the things needed to achieve financial freedom require either a large income or a large amount of savings? There are people who make $50,000 a year and are financially free. There are people who have made millions of dollars in their careers and have gone bankrupt. Money by itself does NOT lead to financial freedom. The true path towards financial freedom starts with Desire, Knowledge, and Prioritization.

Let me know in the comments!

Do you want to achieve financial freedom?

At Wall Street Fat Cat, I will try to present different concepts to increase your knowledge about finance, investing, and financial freedom. Then, if you have the desire and set your priorities to get to financial freedom, you will undoubtedly get closer to it.

Your journey towards financial freedom starts right MEOW!