For me financial freedom is when you are not limited by your finances, you are able do what you want and your finances won’t be the reason you’re being held back. Financial freedom is, however, personal and different from person to person. I’m writing this post based on my definition of financial freedom and even if your definition might be different I’m sure that some parts can relate to your journey towards financial freedom as well or it might inspire you on the way.
Night is one of my favorite times during the day because when I sleep I can dream and when I dream anything can happen. I can go anywhere I want, meet anyone I want and I’m suddenly a lot better speaking any language I’m trying to learn. The world of dreams is a wonderful place whether it’s while sleeping or daydreaming, but if it’s so wonderful, why don’t we try harder to make it into a permanent reality instead of an intangible dream.
Financial freedom is a topic that many have talked about. A lot can be said about it but for me it is very simple and basic what it implies. For me the essence of financial freedom is to not being limited by your finances. I’m sure that someone out there is thinking right now that it would be nearly impossible to achieve financial freedom if that is the case because if you’re not limited by your finances you need enough money to be able to buy everything there is to buy. It is true that you would need to be extremely rich to be able to do that, however, when I’m saying not being limited by your finances I don’t mean that you should be able to buy anything just for the sake of being able to buy. What I mean with not being limited by your finances is that you should be able to do the things in your life that you want.
If financial freedom is having the money to do what you want when you want it freedom should be having the time to do what you want when you want to. That is my definition of financial freedom and freedom, and for both of them how one define it is personal. Financial freedom for one person can be completely different from another person but what it has in common is the process of reaching it. It’s not about winning a lottery or getting famous and earn huge amounts of money. It’s like Robert Kiyosaki expresses “… a mental, emotional and educational process.”
We can talk about saving all we want but talking certainly won’t make any change, it is time to do something about it! We have reached level three in the aggressive and meanwhile level one and level two focused understanding our potential to save and becoming more aware on what we spend our money on and what we want to spend our money on, level three is about taking action.
We can think of many reasons of why we should save and many excuses of why we shouldn’t. Living in the moment is an excellent excuse. Why save for tomorrow if we don’t know that tomorrow will come? Well, up until today we have had 100% survival rate and we are likely to have a lot more tomorrows ahead of us. 71.4 years is the average life expectancy of the global population in 2015 according to the World Health Organization. It is true that anything can happen but why should we limit our future possibilities by focusing on the less probable situation?
We have reached mid-September and it’s time to step up our savings game. In the first week we explored different types of expenses that we have, necessity, want and waste and this week we are going to take a closer look at the want. Before we do that, let’s quickly recap from the first level. We started with understanding the concept of our potential to save. Our maximum potential means that we are only spending on necessities, expenses needed for us to survive. This might result in a lot of money in our bank but it’s not necessarily the optimal way of living our life. Expenses within the category need, investments that gives added value to our life also increases our life quality and a certain amount of want is worth more than the money we would save. To live a good life we need to find the right balance between saving and investing in wants, to find this balance it is great to experiment with the level of savings on the scale of your potential.
It is rarely one reason alone of why we are unable to save and it is more likely smaller expenses occurring often that is the problem. They are hidden like ninjas in our daily life and strike the second we look away.
If there is a time of the year when you should spend and enjoy it is summer. It is not an excuse to waste money but it is a good time to do what we really enjoy in life. It will of course drain our savings a bit and to make sure that we don’t have to worry about it we first need to fill up our savings to be prepared. The summer season is about to end and we have all the time ahead of us to prepare for next years round of summer spending. Therefore, we are going to focus on an aggressive savings training this month on #FFF which potentially could change your perspective of saving for the time to come. Through different steps each week you can gradually increase your savings intensity to finally reach your full potential.
Vacation times are here which means that even #FFF will enjoy some time on the beach (once the sun appears). Summer is a great time to relax, enjoy and live life but as you might already expect to be reading here, it is extra important to manage your money well during these times. Many of us will have a few weeks of vacation which means that we have even more time during the day to potentially spend our money. We will also engage in more activities which will involve spending money and the summer bill can become quite expensive in the end.