What's your answer? Do you agree w/ these?

iVillage Member
Registered: 10-01-2008
What's your answer? Do you agree w/ these?
4
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?

iVillage Member
Registered: 04-08-2008

I disagree - that description is "financially doing well" but not FREEDOM.

Freedom is the power to act, think and do without hindrance. I am still burdened by working - unless it is something I would do for free. I am still showing up at work at a set time and no able to do what I want on a workday.

What they are describing is more in line with reality. Shoot for the stars (financial freedom) and settled for the sky (doing financial well).

We are well on our way to the sky. We have a plan. When I finish school all the money we were spending on school will go straight to a TFSA...and if we move to a smaller community, we will be downsizing considerably!

Dee

Community Leader
Registered: 08-25-2006

For the most part, I would have to agree with the article.  A mortgage in your 30s or 40s is okay.  But I most certainly don't want a mortgage when I retire.  So although relative, I think the article roughly says it all.

Serenity

Serenity
iVillage Member
Registered: 10-01-2008

You nailed my response to this also.  

As far as being happy with your job?  My husband is currently wrestling with this.  He loves his job, but right now it's going through a very stressful program change that has almost everyone pulling their hair out.  But to be so put out as to think about leaving it?  That's another questions to ponder.  

Like you, we are behind on retirement and will try to catch up somewhat in the next 10 yrs.

iVillage Member
Registered: 11-14-2008

While i would like to say being debt free without a mortgage would be financial freedom for me....I don't think that is in the cards for a very long time. 

SO I will say debt free otherwise with a mortgage. I think I can live with that, pay all of our bills, save for retirment, save for our daughter's education and i see a small vacation fund in our near future!(very small starting 2015, if I have to put $5 a month in there to make it grow!)

Will I feel better when  I make more money and our retirement savings higher? Yes of course. We are behind on retirement but catching up now. I will feel more free then but am happy for now. We have come so far since 2008!