What is Financial Freedom and Why You Need It?

Freedom is a powerful word and who doesn’t need it anyways. But, the meaning of freedom may vary for different people. For some, it means to choose a career you love or for other it may mean to decide the course of action.

Freedom is very important as it allows you to do what you feel is RIGHT for you and take decisions that will shape your future.

For me, freedom means to do something with it as I didn’t want freedom just for the sake of freedom. Instead, I want freedom to create something unique and to challenge myself.

Imagine yourself waking up early morning with the thought that you do not have any obligations or expectations. And, you choose the routine of your own choice and by chance, if you do not like it then you can modify it depending on your own requirements.

Doesn’t if sound amazing?

That’s what FREEDOM should be. And, the desire for freedom is what takes you from a life full of comforts to an uncertain life but more fulfilling one. Don’t you want to lead a life that is full of excitement where you feel satisfied and happy? Of course, you will want to do this because who doesn’t a life that is full of happiness and containment.

However, we live in a society where money is equally important and we all need a certain level of income to be able to survive and support our family to meet the daily needs.

What is Financial Freedom?

Freedom becomes pointless if you are not financially secure. Having financial freedom allows you to choose and build your own future. Before we deep dive into why financial freedom is important, let us see what financial freedom is?

Like freedom, financial freedom means differently to every individual. To some, it means being debt-fee and having enough money to live a comfortable life while for others it may mean to be able to provide care and better services to your loved ones. Financial freedom or financial independence means that you don’t just rely on your monthly paycheck to lead a comfortable life.

No matter what your definition of financial freedom may be, the rewards of achieving are just scintillating and it allows you to live a life where you’re free from any worries about money. We’ll now see some of the benefits that being financially free bring along with it.

5 Surprising Benefits of Financial Freedom

Here are seven surprising benefits to provide why financial freedom play an important role in our life:

1. Live a stress-free life

It is true that money can’t buy happiness but it can surely provide more control, which in turn help you to reduce everyday stress. Being financially secure means that you don’t sweat out when any unexpected expected expenses arise. 

This is one of the greatest benefits of financial freedom or financial independence as it allows you to take the load off of any worries about money from your mind and you sleep without any anxiety. This will in turn help you to improve the quality of your life.

Imagine how it feels to live from paycheck to paycheck, in a serious amount of debt, and without knowing if the continued changes in medicine are going to disrupt your ability to take care of your family.

Now, imagine how it feels when you knew whether you live on a paycheck or not but the requirement of your daily need will be met. Doesn’t it sound great?

Lifting that burden from your mind is an immense feeling and it is the greatest benefit of financial freedom.

2.Focus on what you want to do and NOT what you have to do

Everyone has some passion based on their hobbies and interests, and this is what they want to do in their life. I’m passionate about blogging and helping others to start their own blog.

However, you may be interested in opening a kitchen garden or playing golf but you’re unable to make time for that due to work pressure. Being financially independent allows you to pursue those interests and even spend time with family.  

3. Take more risks

Life is full of risks and everything you decide to do has some margin of risk involved. You take some and you avoid others. The life you live in depends on the choices you make and the risks you take. When you’re financially independent then it allows you to take calculated risks and make some hard decisions that are important for you to succeed in life.

Taking a risk to achieve a goal requires courage to face the fear of uncertainty and financial freedom allows you to do just that. It helps you to take more risks and improve the chances of achieving your goals in life.

4. Enjoy better health

Nothing is more important than your health. And, when you are free from any worries about money you have in your bank account to take care of your daily expenses then it automatically improves your health.

More importantly, being financially independent allows you to take back the control of how you want to live in the everyday life.

Also, financial freedom helps you to feel happier and have a greater sense of emotional peace. When we feel financially secure about the future then we sleep better and live all-around healthier lives.

5. Retire early

Being financially independent allows you to define a time when you want to retire and live a peaceful life.

It’s not necessary to plan to retire at the customary retirement age of 60 plus and you can retire even in your mid-30s and mid-40s. But, how?

That’s where financial freedom comes into the picture as it allows you to be completely debt-free and you also ensure that you have accumulated enough capital where you could live passively off dividends and interests. But, if you haven’t achieved financial independence then it’s complete madness to retire early.

Final thoughts

Therefore, it is equally important to become financially independent but to me, true financial freedom comes when you can quit your day job and still be able to cover your expenses.

Of the five benefits that I covered above about financial freedom, which is the one that appeals to you the most? I’d love to hear your response in the comments below. Thanks for reading!

Thanks to Sharon McCutcheon for sharing their work on Unsplash.
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