MY PERCEPTION OF FINANCIAL FREEDOM ,Episode 45, LIFE LESSONS

 

Hi friends and welcome to Life Lessons.

After the civilization has progressed, the only thing that hasn’t lost its importance in mankind is nothing but the finance. Possessing endless finance is the dream of millions. In this aspect many people came across a term known as financial freedom. We may get many answers but the underlying fact is that most of these are not complete which may even mislead us away from the actual concept. In the coming section, I would like to elucidate the meaning of financial freedom direct from my past experiences.

Finance formula of Financial Institutions

What is financial freedom?

Despite of many answers that we get from various people, the underlying meaning of financial freedom is nothing but the tendency that we get after possessing enough finance where we are independent to take any financial decision we want.

The important aspect that needs to be considered in this context is the concept of rat race. People who begun a trend of running for their jobs in time leaving off everything in their life. This is popularly termed as rat race. Some people insist that getting out of rat race is financial freedom. 

The Finance formula for getting wealthy

Why is financial freedom important?

The answer of this question is actually known to most of us. Everyone wants lots of finance. No one wants to run like machines at all times.

It is accepted that discipline is important at many instances, but there is a limit for everything.

Is getting out of rat race unfair?

Having riches without rat race sounds to be unfair in some contexts, but it is not. In fact, one should aim for such a scenario in life. There are plans that people can strictly implement to achieve this. But there is a broader concept to be understood when we talk about financial freedom. Let me elucidate about the same.

The Finance formula of Harshad Mehta

My Perception of Financial freedom

Despite of various answers I got, I felt that these definitions were still not satisfactory to answer what does financial freedom mean. 

It is true that coming out of rat race is one of the aspects of this. But this definition doesn’t satisfy the concept. Let us just imagine that we are financially free. In this scenario, what would be our perception?

The answer for this question will give the appropriate answer for our question- What is financial freedom? When we are financially free, we never wait for anything to take decisions especially regarding finance. We do whatever we want at whatever time we want to do it.

Implicitly, the concept is not tending towards finance; rather it is tending towards our perception towards it.  I mean to say that whenever we feel that we are financially free, and then we do whatever we want in whatever time we like to do it. This depicts the actual meaning of financial freedom.

We see people who earn lots of money. They own lots of properties and assets.  But they don’t have enough time to have their meal in peace. This is not the financial freedom in my opinion. It is because these people no matter how big the earnings may be, he (she) is not even free to have a meal peacefully.

In contrary, there are people who wisely plan their income (mostly passive income), which gives them more than enough time to do whatever they want. The income of these people may be many folds lesser than the people I stated in previous lines, but they are free to do whatever they want. They can enjoy when they want, they can work when they want. 

Thus the people in the second category I depicted are actually financially free and not those people who may earn large amounts but are not at all free.

I feel this illustration have created a better and broader idea of financial freedom and not confining it to the concept of rat race only.

(Off course getting out of rat race is required for financial freedom)

Conclusion:

By the illustration I have tried to make it clear the actual meaning of financial freedom from my point of view and experience. It is important that we must aim for financial freedom, not just trying to get out of rat race

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I have reached to this perception after going through many sources. The main motivating source of them is the book- The Psychology of money written by Morgan Housel.

Get this book if you’re interested. Please be free to use the affiliate link to support me for more such interesting blogs on this site.

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