Financial freedom is different for everyone. But the basic idea is that when you reach financial freedom, you would no longer be constrained financially to do what you want to do. By having enough income from your investments to pay for all your daily expenses, you no longer have to worry to earn enough to put a roof over your head, provide food all that is needed, and maybe something more, for your loved ones. You are basically financially free to do that thing that you want, such as traveling the world, volunteer at that NGO, staying at the tropical sandy beach, etc.
If you think that it is impossible for anyone to achieve financial freedom, think again, there are many people in this world that have achieved financial freedom and are doing things that want. You can do it too.
While I have not achieved financial freedom myself, I can proudly inform you that I am already on my way to financial freedom but it is definitely a long journey.
Level 1 - Dependence. Everyone starts here. When you’re a child, for example, you’re dependent on grown-ups.
** The majority of people would only think until this level which is still in the Hamster Wheel. But if you are looking for ways to get out of this hamster's wheel, you have to strive on for the next level.
Level 2 - Solvency. You can support yourself, without help or handouts from others, and you’re current on your bills.
Level 3 - Stability. You can support yourself, your bills are current, and you hold some savings.
Level 4 - Debt Freedom. You’re debt-free.
Level 5 - Security. You have enough investment income to cover basic, bare-bones living costs.
Level 6 - Independence. You have enough investment income to cover your current lifestyle.
Level 7 - Abundance. You have enough investment income that you cannot possibly spend this money.
If you ask me now, I can tell you that I am at Level 3 as I have not saved and invested enough to cover my basic bare-bones living costs. That will still be a long way but at least I am already on my journey.
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