Financial freedom can be many things to different people. When people think of financial freedom, it could mean not having to worry about bills or not having to commute daily. Financial freedom in retirement is common. It usually looks like sleeping in, making coffee, taking a walk and enjoying life. Some people would consider a big part of it going out to eat and not worrying about which credit card or how much. Others might prefer the time to work on passion projects without worrying about their next paycheck.
A simple way to start on a way to financial freedom is to talk with an advisor at the bank or map out a journey to financial freedom. Life does not go perfectly, and emergencies come up. Having a guide and goals will help. After asking about financial freedom with friends and family, the answers come from the person’s understanding of finances.
When people are young, they aren’t taught about finances. Elementary school teaches students about money. Some schools have savings account programs. This is where students save coins and deposit the coins in a bank account every week. The banks will give prizes to the students for reaching certain goals. This is a good thing, but no real financing knowledge is learned from the experience. Banks can get customers early and then send credit cards once they are 18 years old.
The sad part is that people are told to get into debt to have a normal life. They hear about higher education institutes, new cars, buying homes and then getting a job to pay down the debt. The worst part is that many people enter the rat race of the middle class, intending to be better. Most of these people will see winning the lottery as the only option for gaining financial freedom.
Most people probably get their finance education from high school or college. When people are young, they get this information from their parents. One great piece of advice is to save money for a rainy day. This is good advice because life happens. It is always good to prepare for life events. Saving money in a traditional savings account doesn’t make any interest, though. People are better off talking to a professional about financial options to set up a retirement account or a more aggressive way to save money. An emergency fund will always make a person feel better.
In Australia, the last 20 years have had an average of 3.10% interest. In The United States, interest has gone from 1% to 0%. In Australia, the stock market has had an average return of 8.7%. So a riskier and more aggressive strategy is the best way to save money. People who have found their financial freedom usually have a mentor or parent to thank for the early lessons. They study finances in school or surround themselves with friends or business associates. These people are almost always willing to share their stories and offer advice. Everyone is different, and no one financial journey will work for everyone.
