Defining, finding, and creating it through your lens
Many ask, “What is financial freedom?” because the phrase seems vague, undefinable, or unachievable. Financial freedom is subjective, objective, and personal to you. There are many varying definitions, but they contain similar and consistent themes. Here’s the Concurrent definition:
Financial freedom is achieving financial independence through intentional wealth-building that secures cash, savings, and investment assets that support your lifestyle of choice for you and your family, retiring you from earning for living and providing you the freedom and flexibility to control your life, production, and time aspirations.
Goals, like many aspects of life, are a feeling. Folks want tangibility in their goals, too. Goals that are S.M.A.R.T. receive the most commitment and fulfillment.
Specific
Measurable
Attainable
Relevant
Time-bound
Finding Your Financial Freedom
Clarity
People tend to carry anxiety and worry about their money which stems from a lack of clarity about their life aspirations, money supply, education, and direction. Be sure to give yourself some compassion and grace. Meet yourself where you are and gain the clarity your need through self-education and collaboration with a trusted financial advisor. More financial clarity contributes to increased financial wellness leading to greater confidence.
Confidence
Folks, notably Gen X, need more confidence in their retirement funding, timing, and quality. With greater certainty, you feel more secure about the direction of your life goals and perception of your finances–now and in the future. Greater confidence promotes a heightened sense of life well-being.
Control
A great reward of financial freedom is attaining more control of the who, what, when, where, and how your life wants to go according to the security earned financial independence. Confidence and clarity help you get there and stay there on your pathway to control.
Creating Your Financial Freedom
Financial freedom is like a thumbprint—unique and personal to each individual and household. When creating your version of financial freedom, it’s important to envision what it means to you. Discover what your life looks and feels like now and what your version of retirement will look and feel like later.
Number
Calculating your number can help guide your journey toward building wealth. Your wealth number must be yours, and wealth differs from person to person. Being rich and having wealth for your are two different discussions.
Lifestyle
Here’s the fun part! Be bold and courageous with the imagination of your aspirations. Creating your lifestyle with a sense of purpose builds a connection to your financial plan and gives an assignment to your money. Be explicit about your living requirements.
Length
How long will you be in your retirement lifetime? Specifically, how long you are primarily taking distributions from your wealth accumulation assets, including financial investments, income-producing assets and solutions, and pensions? The length or duration will depend on your start date and influence your savings rate and financial freedom number.
Target Date
When do you want your financial freedom to begin? By age? Your target date is determined by your desire to retire, your savings rate capacity and dedication, and retirement resources to fund the lifestyle you aspire towards. So, Stop comparing your retirement date to others. You must find contentment with your path.
Savings Rate
Picking between a good life now and good life later is not a zero sum game. You can maximize your life now AND optimize your life later. Your retirement number, lifestyle, length, and target date depend on how much you can save and invest to achieve financial freedom.
Once you determine the other components, you can start paying yourself first through your spending plan by promising yourself a savings rate. The length or duration will depend on your start date and influence your savings rate and financial freedom number.
Celebrate Your Financial Freedom
When you find retirement on your terms, you are not retired from life . You are simply retired from your MUST DO and transitioning to your WANT TO. Retirement celebrates securing the financial means to be independent of trading your time for the need to earn money to support your lifestyle by design. Remember that life is never free of uncertainty or worry. Life is ebbs and flows.
Celebrate being freer and live in gratitude for the opportunity rather than not. Enjoy your freedom.
