Welcome! This article on financial freedom is the beginning of our Financial Literacy Month Series. Click here to read other articles in this series.
So exactly what is Financial Freedom and why do I want it?
This question came to me quite suddenly one day.
Do I really understand what financial freedom is? Why is it something that I’m so focused on?
I once had a conversation with a friend where she explained why she wasn’t concerned about paying down/off her debt. Why? She’d just accumulate more because what’s the purpose of being debt-free if you couldn’t have or do what you wanted. She was content with being in debt past her ears.
That stung. Mainly because I know so many people who feel that exact same way but I honestly believe it does not have to be that way.
Click Here to Read Related Article: Breaking The Cycle of Debt
In my opinion, financial freedom means not being burdened down with the stresses of money – owing someone, late bills, disconnect notices, and having to go without.
Financial freedom means being able to control my finances and not having my (lack-of) finances control me.
By eliminating my debt, I free up MY money – the money I work hard for throughout the week – to do things that I truly enjoy.
My Steps to Financial Freedom
- Reality Check – looking at what I have, what I owe and what I need
- Budget – creating a family budget that my husband and I can agree on
- Savings – having an emergency fund and creating short and long-term savings goals
- Debt Management – Pay off 20% of my total current total debt annually to reach my goal of being debt-free within the next 5 years and not accumulate any additional debt
- Connect with other like-minded savvy savers to learn from and with one another
- Educate myself by reading and following those that have accomplished the goals I want to reach
- Teach my children the importance being financially educated and set them on the path to being financially free at an early age
What does financial freedom mean to you?
Why are you working towards financial freedom?
Whitney
Wednesday 10th of April 2013
My husband and I are working on our debt while trying to take care of other things. It's been a struggle, but if we keep going we will get things where we want them. This is a topic we don't like to discuss or pass on. Thanks Michelle.
Chris Carter
Wednesday 10th of April 2013
Oh this speaks such truth!!! We live with little debt and honor our finances with responsibility and budgeting a plan. There are so many people who carelessly spend in the need for materialistic happiness, and that saddens me. Greed is a nasty ailment our culture dignifies.
prowessandpearls
Wednesday 10th of April 2013
So true Michelle! Many people, especially Believers...leave their financial destiny in the hands of other people. We must eliminate debt from our lives, so that we're not in bondage to ANYONE! Your list is on point! Many of us have debt in our lives because we lack self control and sadly some of us have never been taught how to manage our money. Education is key. Thanks for sharing Michelle and thanks for linking up today...have an awesome week!
Darlene Nemeth (@DarleneBNemeth)
Wednesday 10th of April 2013
Hi, found you at the doing it well blog hop. Liking your blog and now following.
Elizabeth
Friday 5th of April 2013
Do you have a certain financial program you are following? The instant I read this, I thought of Dave Ramsey. I'm following his program to get out of $40,000 of medical debt. Financial Freedom is really important. Optimistic and intense about the program, but that's because if I want to live like no other in the future, I have to do something about it right now. Most important part is knowing that once the debt is gone, I won't feel the stress anymore.
Michelle
Saturday 6th of April 2013
Hi Elizabeth! I love Dave Ramsey. I took Financial Peace University with co-workers a few years ago and that's when the light bulb went off! Since then I've done some research, trial and error and just knowing the goals and desires of my family to come up with a plan and routine that works for me. The biggest thing I took from Dave was the "below the line" concept. Once I accepted and realized that those items below the line just wouldn't and couldn't be taken care of it removed so much stress and worry from me. If I don't have it, then I don't have it. There's so much more to life than worrying and stressing about finances I don't have. Becoming more knowledgeable, savvy and frugal has truly been a life-changer for me! Thanks so much for commenting and stopping by!
nshstheatre
Saturday 6th of April 2013
Knowing the value of a dollar is an important value to teach our daughter. If I am charging up a storm, not questioning the amount, what does it teach our girl? Thanks for this post--it makes me review my goals for the month!