#DEFINE FINANCIAL FREEDOM FREE#

Then all of the extra money they make is either icing on the cake or can be given away. When they reach a point where they no longer need to work, they retire.īut it’s important to point out that many people enjoy their work and reach financial independence long before they retire. This doesn’t mean that you can’t work, it just means you have the ability to choose to work or choose not to work.įor many people, financial independence coincides with retirement. This means that your savings and investments are sufficient enough to cover the lifestyle you want from now until you die without ever working again. Most of the general definitions for financial independence center around the idea that you are financially independent when you no longer have to work. What Is Financial Independenceįinancial independence can have many definitions depending on who you ask. These words can mean different things for different people. So as I start defining these terms, remember that you don’t have to completely agree with me. Well, that’s why I have a little secret for you.īoth of these phrases can mean whatever you want them to mean.įinancial freedom and financial independence are completely subjective terms that are based on your own goals, needs, and desires. (like here, here, or here.)īut these phrases are completely useless if you don’t understand them.Īnd it seems like there are so many different definitions out there, so how can you really know? Even I use financial freedom all the time, just look anywhere on my site and you’re bound to find it. Now, these two phrases are great and I’m not saying we shouldn’t use them. – And maybe my favorite financial freedom article, from one of my all-time favorite sites, Becoming Minimalist – Great article about defining financial independence from Money Sense – Killer article on the multiple types of financial freedom from Paula at Afford Anything – Sweet post and spreadsheet from J$ at Budgets Are Sexy that helps you determine financial freedom – Awesome post about financial independence from Gen Y Finance Guy Just check out any of the most popular sites about personal finance and you’ll see these phrases everywhere.

#DEFINE FINANCIAL FREEDOM FREE#

These two phrases are gaining significant popularity in the personal finance industry, especially amongst twenty-somethings (people like me).Īfter all, isn’t our dream to become independent from our parents and free enough to travel, work, and live how we want?

Financial freedom and financial independence are two phrases that are bouncing around the web like a beach ball at a Nickelback concert right now.

Define financial freedom