School is not about discovering your ideal lifestyle. Our educational system is aimed at creating a set of skills to allow you to have a good career, earn a decent amount of money and pay for your bills. The interesting thing is that in life, we’re mainly taught to focus on meeting our financial obligations. Your financial obligations will be bigger and you will need more money to make it to total financial freedom. If your ideal lifestyle involves a lot of shopping, eating out, and spending money on luxuries. And thus, financial freedom will be easier to achieve. If your ideal lifestyle is simple and nonmaterialistic, your financial obligations will probably be smaller. These are two sides of the same coin and they balance each other out. If you break this down, we can see that financial freedom has to do with: On this blog, I define financial freedom as the situation in which you can meet all your financial obligations while having the freedom to live your ideal lifestyle. When I asked people on my Instagram account to give me a definition in their own words, I got so many variations.Ī few of these definitions are in the image below:Īlthough financial freedom is different for everyone, there is a general way of looking at it that works in each situation. Concepts such as FIRE are rapidly growing, showing that many people are looking for new ways to create financial freedom.įinancial freedom for one means something different than for the other. The Financial Independence Retire Early (or FIRE) movement is all about this idea, showing new concepts to fuel financial freedom. This can be achieved at any age, as long as you have another income source to cover your expenses. In the ‘new’ idea of retirement, retirement simply means that you don’t HAVE to work anymore, or that you choose to work less. In the ‘old’ definition, retirement means that you don’t work anymore at all. A norm that we all know well, but it is certainly not the only way to achieve financial freedom. This way of retiring is the social norm and is used by plenty of people. A retired person has saved his/her whole life and has a huge pension fund. When people think about financial freedom, they probably think of someone in their late 60’s. This blog article is part of the cornerstone content of From Penny to Many, so I will update it regularly and add links to relevant other blog articles for further reading. It also gives you information about the approach I took to retire early to travel the world full-time. It covers how to define financial freedom and how you can achieve it. This blog article is about financial freedom.
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