What's your answer? Do you agree w/ these?
Find a Conversation
|Thu, 01-23-2014 - 3:19pm|
When Are You Financially Free?
Submitted by: Tip Hero 01/17/2014 1:42 PM Financial freedom means something different to everyone. We all have different ideas about what it means to be financially free, but it's important to point out that freedom doesn't just mean becoming a millionaire or not ever having to work again. Financial freedom is a lot more attainable than either of those things.
Let's take a look at some solid definitions from Three Thrifty Guys:
- When you have more than enough to pay your bills each month: freedom begins when you can pay your bills, afford a few luxuries that are important to you, and you can save a credible amount of money each month.
- When you're finally debt-free: according to Three Thrifty Guys, "carrying debt is paying yesterday's obligations." When you can pay your credit cards off in full each month and you carry no debt, you're probably going to revel in that freedom.
- When you're able to do work that you like: many people work a job they hate in order to pay the bills. Buy if you could leave that job and work a job you actually enjoy while still living within your means, you're going to live a more satisfying life and likely feel a lot freer.
- When you have enough money to take time off: knowing that you have enough saved in an emergency fund to live off of if you need or are forced to take time off is a very valuable thing indeed.
- When you're on track with your long-term goals: a lot of our long-term goals need to be worked toward for decades, but when you're on track with your savings, you can breathe a little easier knowing that your future is in a good place.
What does being financially free mean to you?