Financial freedom is when you no longer rely on paychecks from your job each month to pay your bills. You are independent from a company and a boss, you make money on your own terms or have enough money to pay your bills in perpetuity with no need for more. When you achieve financial freedom you have removed the majority of stress over money from your life. You can buy the things you need without worry because you have multiple streams of income or a large capital base to live off of that meet your monthly bills with a large margin of safety.
You are free to spend your time and energy how you want each day whether it is producing new things for money or spending it at leisure. You can work when you want or not at all if you don’t want to. You are free to do whatever you want or nothing at all.
It is very hard for most people to understand what financial freedom is or how to achieve it. The first step on the path to financial freedom is to disconnect in your mind the need to sell your time in order to make money. People have to start thinking in terms of cash flowing assets, investments, business building, creating assets, or trading, to start to understanding how to create their own path.
Financial freedom is achieved when you make more money from streams of cash flow than your monthly bills. You can either make so much money that bills do not matter or you can use a combination of earning and frugality to break free. The harder you work at building things that have value and the less you spend money on material things you don’t need the quicker you will be financially independent.
Here are paths to financial independence.
Compound a stock portfolio year over year for a long enough period of time.
Creating a profitable trading system and compound capital until you have enough to live off of the gains.
Invest in the right business.
Create your own business.
Create cash flowing digital assets.
Create a high ranking website.
Make a few very good real estate investments.
Sell a high value personal residence and move to a low cost area with the profits.
Create your own job.
Live frugally and save most your money.
Stay out of debt and live within your means.
The American dream is shifting from go to college and get a good job to do what you love for money and live free from crushing debt and trapped in the corporate rat race.
If you work for yourself and your own goals it bring a higher level and better quality of energy to your life than working in the corporate world. You just have to find the path that is right for you.