5 Priceless Benefits of Financial Freedom in 2023

I’ve heard the phrase “financial freedom” many times over the last 3-4 years from the investing community.

Whenever I talk to a client or investor in various forums, it seems that “financial freedom” has become the new buzz word. That’s why I decided to talk more about it today.

What is financial freedom?

Simply put, financial independence is the accumulation of enough money to cover your living expenses for the rest of your life. You’ve saved enough money to cover all your bills for the rest of your life. After this you will not have to worry about money.

How much money makes a person financially independent is a deep question and can be debated, but in the simplest terms, once a person has accumulated 35-40 times their annual spending requirement, He is called financially independent. You can read more about this 30X rule for retirement here

Let me get to the point of this article and discuss the top 5 reasons why I believe most individuals should strive for financial independence early in life (hint/strong: by the time they are 45 or turn 50). of the year).

5 Benefits of Achieving Financial Freedom

Benefit #1: Freedom to Buy in Life

We all work hard day and night to earn money. Money covers all our costs. Rent, food, your children’s school fees and healthcare costs. Everything..

If money is not everything in life, it certainly is a very important factor!!

Many people do not feel free in their life. They become slaves of money because earning money becomes the main aim of their life.

• They cannot deny their work

• They can’t say ‘no’ to the schedule

• They can say no to their bosses

At all times, money determined their lives and decisions.

Having enough money in life can give you a lot of freedom.

• Freedom to work when

• Freedom with whom to work

• Freedom to wake up

• Freedom to take long holidays..

you name it and you can feel the freedom in that area

If you want to experience immense freedom in different areas of life, then you have to work towards financial freedom.

Home loan-Which is the best time to prepay the home loan in 2023?

#Advantage 2: To bring more strength in your career

Many people have this myth that they will achieve financial freedom so that they can quit their jobs and retire from work.

not true!

One has to achieve financial independence so that they can bring more energy and enthusiasm in their career or whatever new they want to do in life.

Most people work in life with the primary objective of making money, not because they want to.

• You feel that new project in your company is exciting enough but doesn’t pay enough? What do you do? forget it!!

• You think you really enjoy taking risks and trying something challenging at your workplace, but wait.. what if it fails and you get fired or don’t get promoted next year? You forget it and again focus on things that are “safer” for your career.

We are constantly looking for ways to boost our compensation package, even if it means giving up activities we would love to do if money weren’t an issue!

When the money runs out and you have to work only for the love of working and reach greatness, your work takes on an entirely new vitality. You achieve more quickly and your job satisfaction increases. This is the real way of doing things, but it doesn’t happen for most people because money gets in the way of what you really want to achieve in life.

#Benefit 3: Greater flexibility to pursue other passions

Financial independence also gives you the freedom to pursue long-awaited passions that you cannot fulfill while holding a regular job.

“What will you do after you are financially independent?” I ask our workshop participants. I get some unusual responses, like

• I will be a music teacher

• I would like to run a restaurant

• And even I would like to become a scuba diving instructor

The compulsion to “make money” has crushed a lot of dreams and financial independence is the point where one can look for new careers or opportunities.

#Benefit 4: Stress and worry about money will reduce

This is a no brainer.

Now ask yourself the question. If you lose your job and never find another, how many years of expenses do you currently have?

• 3 year?

• 10 years?

• Or 2 months?

Wait more!.. How about paying off all your outstanding home loans and on top of that funding your children’s expensive education?

It’s scary isn’t it!

We are all worried about the future as we do not have enough money.

Here’s a quick 25-question financial health test if you’d like

The day you will have enough money to afford everything and live comfortably, that day you will be really safe and secure.

#Benefit 5: Pass on a strong legacy and build generational wealth

• Your grandparents worked for money

• Your parents worked for money

• You work for money now

Where are your generational assets? Do you have a family heirloom that at least takes care of your family’s basics?

You will see different families where they work towards generational wealth. They have enough wealth that generates income for the family, be it a business, equity assets, real estate assets or anything else!

But many families are not able to make it because they don’t have the attitude. They make money and they lose money, and at the family level, they’re always in that never-ending cycle.

If you achieve financial independence early in life, there is a good chance that you can sow the seeds of generational wealth, but you also need to make sure that you teach your next generation the right attitude towards money.