What does financial freedom mean? For each and every one of us it will mean something a little different. At a certain point, we can all agree that being financially free means being able to have the choice to do certain things that we desire to do in life. It might mean being able to quit our job, get out of debt, provide for our family, buy a certain vehicle, buy a piece of property, or travel. The list is endless, but unique to each person.
For most of us, we are in the mode of maximizing this freedom because we know and feel the walls that restrict this freedom we desire. We want more freedom than we have today. Buying a stick of gum means we have freedom, yet our sights are set much higher than such minimal desires. How do we get to the point where we can truly feel as if we can breath and bask in the glow of this idea we call being financially free?
To begin, we have to honestly assess our current situation. Where are we and where do we want to be? I would recommend starting with where you want to be rather than your current state. We want a future filled with hope and that’s where our focus should be affixed. What do you want tomorrow, next month, next year or in the next decade?
These things that we want in our future need to be real. I cannot stress that enough. By real I do not mean we need to keep our dreams small. What I mean is that they need to be something we truly desire and believe in. Secondly, it is important not to get caught up in listing tangible things. Some things might have a much greater impact than tangible goods, such as paying off a loan. By opening one door, the ability to open multiple other doors can exist. Actions do not often occur in a vacuum.
What do you want to do? What matters in life? I will tell you right now I want to have a certain amount of spending money for a trip I’m going to take in a month. I want the money to be generated from savings I have in my Scottrade account. Since this means a lot to me, I have dedicated time and mental energy researching and investing. Have I reached my goal? No. Have I made progress, yes. Have I had set backs? Yes. Do I quit because every trade doesn’t go my way? Absolutely not.
What I just described above is the same mindset and thought process that must be had whether you’re saving for a new home or trying to clear credit card debt. If this was easy, everyone would be swimming in gold like Scrooge McDuck!