The Freedom of Finances | The Four Types of Freedom
The Freedom of Finances is the freedom to buy the things and experiences that matter most to you.
If you want to buy a round of drinks for your friends, you can. If you want to take your family on a vacation, you can. If you want to retire early due to savings and smart investing, you can.
Prioritizing the Freedom of Finances doesn’t mean that someone is only looking to get rich and squirrel away whatever they can, these folks are often looking to have money so that they can SPEND money. They want to be able to afford the things that are most important to them - whether that be family, travel, real estate, antiques, designer clothes, new cars, etc.
Contrary to popular opinion, those who are after Freedom of Finances don’t always go for the highest-paying gigs. It’s more than being able to easily make ends meet. Sometimes they find their financial freedom by having fewer ends in the first place.
Freedom of Finance seekers can choose to live more simply, in lower-cost areas, and have fewer expenses so that they can make their money go further. Not stressing about how to pay the bills is a huge weight lifted off anyone’s shoulders and for those who prioritize this type of freedom, it’s a non-negotiable.
How can you find more Freedom of Finances in your life right now?
There are two main ways to find more financial freedom: to increase your income and to decrease your expenses.
You can increase your income by:
asking for a raise
finding a job that has a higher pay
raising your rates with your clients
charging more for your products
creating additional revenue streams
You can decrease your expenses by:
living in a lower-cost house, neighborhood, city, state, or country
living with others and sharing costs
dialing-in on your priorities and not spending on things and experiences that don’t align with your goals
There are a million resources online for how to increase income and decrease expenses. This is the tiniest of smatterings of examples.
Personally, I love talking money and personal finance and am happy to do so with my clients to help them gain clarity on their goals.
The most important element of the Freedom of Finances is that it’s fully based around YOUR priorities. Having a lot of money alone doesn’t indicate the Freedom of Finances, nor does it even indicate a desire for this freedom type. “Having a lot of money” is so relative as to be impossible to define what that even means.
Someone who is searching for and prioritizing this freedom may want to make $10 million a year or $30,000. They will live their life in accordance with their own goals and preferences.
Often, we’re told this is what we “should” want by society - we’re taught to climb the corporate ladder, to go for bigger and bigger raises and more opportunities, to buy a house, then a bigger one or another one. But getting clear on whether or not this is actually the right path for you is critical - financial freedom DOESN’T look the same for everyone.
If the Freedom of Finances is your top priority right now, I highly recommend you read as much personal finance literature as you can. There are a number of books, articles, podcasts, and more out there that can help you leverage and manage your finances in a way that best suits you.
Some of my favorite personal finance books include:
I Will Teach You to Be Rich Ramit Sethi
Rich Dad Poor Dad by Robert Kiyosaki
We Should All Be Millionaires by Rachel Rodgers
