To reach financial freedom, we must first understand what financial freedom is. The first thing that comes to mind is that the person needs to be rich, but I beg to differ.
During my career, I have worked with individuals that were undoubtedly rich, having multiple millions. However, due to how they achieved their financial wealth, it did not grant them freedom. Those that were due to inherit millions were at the mercy of the expectations of their families. Those that were successful business owners were married to their businesses and cant get away. Those that were in very high paying jobs had to keep working.
I don't consider myself rich, but I consider myself financially free. That is because I use what wealth I have to passively earn an income that lets me reach the goals I have and to sustain my current lifestyle. So the point you reach financial freedom greatly depends on what goals those are. Just to share, mine are:
1) Guide my sons as they grow up
2) Enjoy time with my wife
3) Play computer games for as much as I want
4) Travel to different countries multiple times a year
5) Eventually buy a large landed property
Most focus too much on the financial part and forget what that financial wealth is supposed to get them. So to reach financial freedom, you must first understand what that means for you. What are your goals and dreams?
Have a think about that. In the next post, ill share how to calculate how much wealth you need to be financially free based on what you want in life.