Disclaimer: My family is not yet financially free (according to my definition), so this entire discussion is theoretical – at best. However, if you can see it, you can be it. That’s how I roll. Let the postulation commence!
Facebook, when used for good, can be an amazing forum with a fluid exchange of ideas. It can also be a freak show on constant display if friend lists aren’t properly managed. Seek quality, not quantity. I generally enjoy the links, political rants from all sides, kiddie updates, travel pics and worthwhile announcements that filter into my newsfeed. A recent discussion caught my attention over most others because 1) I was tagged and 2) The topic was personal finances. The question posed was simple enough – what does it mean to be financially free?
Is financial freedom akin to something Destiny’s Child swooned over in Independent Woman? This watch I’m wear-ring…I bought it. The shoes on my feet…I bought it. Probably not, but it gave me an excuse to rock out to an oldie but goodie at 2 am – research. So go ahead “mammas” and “profit dollars” if that’s your thing.
As with most concepts a la financial, the answer would be it depends. Financial freedom might look very different in my household than say yours or Warren Buffet’s. So the better question is have you answered that question for yourself? Wikipedia (I know it’s gotten some bad press as of late, but this discussion is light and fluffy so let’s move on) defines financial independence as a state of being when you have acquired enough personal wealth to provide for basic necessities without actively working.
That’s a great concept. Since I believe work is biblically ordained and something that keeps our minds from morphing into mush, financial independence does not include a desire to avoid work all together. How many Mai Tais can one sip poolside in a tropical paradise, week after week? I’ll know we’ve obtained the financial freedom sought when we have developed enough income streams from assets to sustain our current lifestyle which makes working for someone else optional.
My path to financial independence, in theory, includes retiring all debt (including mortgages), growing our business ventures into profitable entities, positive cash flow generating real estate, and our corporate retirement plan.
What does financial independence mean to you?