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.
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?