Why Do You Want Financial Freedom?

[Anderson]

Before you set out on the journey toward financial freedom, it's essential to understand why you want it. What does financial freedom offer that you don’t already have? Money and financial freedom are psychological and social constructs, so identifying what financial freedom means for you is crucial.

For example, early in my career, I worked a demanding day job. My desire for financial freedom was driven by wanting to go part-time. The happiest people I knew worked three days a week instead of six. To maximize happiness and fulfilment, I aimed to earn enough money to work fewer days without financial stress, like worrying about mortgage payments.

To me, financial freedom was about buying back my time. Without it, I felt chained to my job. This scenario is familiar to many; we are often financially tied to our work. However, financial chaining isn’t necessarily negative. Some people love their jobs and find them fulfilling despite the financial ties.

The crux of seeking financial freedom is understanding your motivations. Do you want to work part-time, quit your job, enjoy a luxurious lifestyle, or secure your mortgage? Everyone’s reasons vary, and it’s essential to identify yours because financial freedom can vary widely.

For instance, someone in Pakistan might feel financially free with $2,000 a month, while the same amount in New York City would feel inadequate. Your lifestyle choices also influence this. If your happiness requires minimal spending, you’ll feel financially free with less money. Conversely, if your desires are extravagant, you’ll need more.

Ultimately, financial freedom is a feeling, not a reality. It's about identifying the markers of that feeling for you and then reverse engineering the amount needed. This process includes internal work because even those with millions can feel financially constrained.

When discussing financial freedom, clarify your motivations. Consider what it will buy that you don’t have now. Then, determine the dollar amount needed. This number will likely change as you get closer to it, but having an initial goal is crucial.

Pause and think: What’s the amount you need monthly to feel financially free? For me, $5,000 a month in passive income seemed ideal. Once you reach financial freedom, you’ll want to invest wisely. For instance, trading apps can offer features like cash back and seamless investing options.

As you grow and reach your goals, your identity and aspirations will evolve. Today’s financial freedom goal might feel small tomorrow. What matters is the journey and the personal growth along the way. For instance, a friend of mine started with a goal of $10,000 a month. After reading key books and taking action, within nine months, he was making $35,000 monthly.

If you aspire to financial freedom, start by consuming relevant information. Read books, listen to podcasts, and immerse yourself in learning about business and entrepreneurship. It’s a journey that requires continuous learning and adaptation.

Recommended Reading and Listening
Here are four recommended books to get you started:
1. The Millionaire Fastlane by MJ DeMarco
2. Million Dollar Weekend by Noah Kagan
3. $100M Offers by Alex Hormozi
4. Dotcom Secrets by Russell Brunson

Additionally, listen to interviews and podcasts with successful entrepreneurs to gain insights and inspiration. Taking these steps will fill in the knowledge gaps and help you chart a clear path toward your financial freedom.

Aligning Goals with Actions
In conclusion, financial freedom is about aligning your goals with your actions. Whether it’s adjusting your lifestyle, maximizing your time, or changing your plan, the journey should be enjoyable and fulfilling. Surround yourself with like-minded individuals and continuously seek knowledge to stay motivated and on track.

Action Steps

1. Identify Your Motivations: Reflect on why you want financial freedom and what it means to you. Write down your top three reasons and visualize how your life will change once you achieve it.

2. Determine Your Dollar Amount: Calculate how much money you need to feel financially free. Break it down into monthly income and long-term savings. Use tools like budgeting apps or spreadsheets to track your current expenses and project your future needs.

3. Educate Yourself: Dedicate at least 30 minutes daily to learning about financial freedom. Read the recommended books, listen to relevant podcasts, and follow credible financial blogs. Join online communities and forums to stay updated and get support.

4. Create a Detailed Plan: Outline a step-by-step plan to reach your financial goal. Include short-term and long-term milestones, such as saving a specific amount, investing in assets, or starting a side business. Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to keep yourself on track.

5. Maximize Your Time: Audit your daily activities to identify time-wasters. Replace them with productive habits that align with your financial goals. For instance, listen to audiobooks or podcasts during your commute or workout.

6. Leverage Your Day Job: Use your current job to your advantage. Save a portion of your income, seek opportunities for promotions or raises, and use any downtime at work to plan and strategize for your financial goals.

7. Network with Like-Minded People: Join groups and attend events where you can meet people with similar financial goals. Surround yourself with individuals who inspire and motivate you. Consider finding a mentor or joining a mastermind group.

8. Take Care of Your Health and Relationships: Maintain a balanced life. Prioritize your physical health by exercising regularly and eating well. Nurture your relationships by spending quality time with family and friends. A supportive environment is crucial for your financial journey.

9. Start Small and Scale Up: Begin with manageable steps towards financial freedom. Invest in low-risk assets, start a side hustle, or automate your savings. Gradually increase your efforts as you gain confidence and experience.

10. Stay Consistent and Adaptable: Consistency is key. Stick to your plan, but be open to adjusting it as needed. Life circumstances and financial markets can change, so flexibility is essential for long-term success.

[Anderson]

I would like to recommend a few posts well connected to the topic. Enjoy reading.