Financial freedom. In essence, this term sounds pretty great, right? But what exactly does financial freedom mean? What can be considered financially free? Why do you want to be financially free? How can you achieve financial freedom? How can a wealth strategist help? Once you start to dive into pondering this term, these are the kinds of questions that most likely come up. While at the most shallow surface level this term seems like it is something spectacular (spoiler: it is!), it is important to have a deeper understanding of it. Let’s take a look at some of these questions and discuss the answers to them.
What is Financial Freedom?
Financial freedom may mean something slightly different for everyone, however, it essentially means that you are able to live your life comfortably on the money you have, without living paycheck to paycheck and without having debt hanging over your head. There are a few common things that often result from being financially free as well.
Your Wellbeing Improves
When you have to constantly worry about money, it can be mentally and physically stressful and exhausting. Having to be conscious of every penny you can save and having to make tough decisions between meals and bills can be draining. It can take a toll on your emotional wellbeing, can cause anxiety and depression and even paranoia, and can cause you to be less satisfied with your quality of life.
In addition to these mental stresses, physical ailments can occur. If you are constantly trying to save money, you may be purchasing and consuming cheaper and less healthy food options, which can result in health issues. When you don’t have your finances in order, and a health problem comes up, you may be unable to seek the medical attention you need. Overall, financial stress can greatly affect your well-being, and in the same way, financial freedom can greatly improve it.
Your Family Life Improves
When you are struggling with money, your family life can suffer. Marriages become tense when every conversation seems to revolve around the finances and turns into disagreements about how money should be spent, how much money should be saved, and more. This leads to unpleasantness at home and it can affect everyone within your family.
Your Future Plans Improve
Becoming financially free also includes preparing for your financial future. When you are not living paycheck to paycheck and you have alleviated your debt, you free up more money to save and put towards retirement so you can enjoy your hard work after all those years. If you put yourself in a position to be well taken care of when you are finished working, you can potentially retire early and enjoy your golden years with no worries.
How to Achieve Financial Freedom?
Alright, alright, so financial freedom DOES sound pretty great even when you elaborate more. How can you be living that life of luxury instead of just reading about it? Making goals and plans can be overwhelming, especially if where you want to be seems far off from where you are currently. There are a few things you can be doing to take steps in the right direction, however!
Putting money into savings, and saving with a purpose is a great place to start. Making large purchases on credit cards and then paying them back (and then some!) later on does not set you up for success. Instead, save up the amount you will need to make a large purchase ahead of time, and then pay for it upfront. It is also important to set smart goals. These goals should be achievable and feasible for your lifestyle and for the amount of income and expenses you have. While nothing is truly impossible, it can be discouraging to consistently fall short of a goal that you set far too high.
Another great way to work towards financial freedom is to reduce your expenses. Do you order in or go out to eat too frequently? Shifting this to grocery shopping and cooking at home more often can reduce what you are spending. Do you swing through Starbucks every morning? Making coffee at home and grabbing a latte to treat yourself only every once in a while is a far more financially wise decision.
On that note, budgeting will also put you in the right position to achieve financial freedom. Be specific with what your income is and what your expenses are, and allocate everything appropriately so you are not spending money you do not have. On top of setting a budget, make sure you are sticking to that plan.
How Can a Wealth Strategist Help?
We know that finances and financial planning are not everyone’s cup of tea. Luckily, we can help. We have a whole staff of people ready and willing to help you achieve financial freedom. At ProVision, we hire only the best. You can rest assured that our wealth strategists have your best interests in mind, and will collaborate with you to see all of your financial goals achieved. If you’re interested in our wealth strategy services, contact our experts today.