Not very long ago, the word “financial freedom” joined our vocabulary. You hear it almost all the time when people talk about money, business or employment goals. In this piece, I try to help us examine what the word means, how it may be achieved, if it may, and what one should avoid.
What is Financial Freedom?
To think of a situation where one has all the money he/she wants, to do anything he/she wishes is but a mirage. That is not realistic and far from what financial freedom means. Human wants are inexhaustible. No one can accumulate enough resources to satisfy all his or her wants.
Financial freedom is a financial state in which a person’s passive income exceeds his/her standard of living. At such point, the person may stop working without reducing his/her standard of living. Well, work provides more than just money, so the person may still work but not necessarily to put food on the table. Work becomes a choice and not a must.
Let’s look more closely at these two phrases: passive income and standard of living :
This refers to income generated by assets i.e. not by working for it (on the other hand, earned income, like salary, is the kind of income you generate by working for it). This includes Return-On-Investment (ROI), dividends from shares, rent from real estate, royalty for art work or books published, among others. What one needs to do is to acquire more of these assets that generate passive income.
Standard of Living
This is the amount of money and level of comfort that a particular person or group has. Everybody has a standard of living. You may not have taken time to calculate it but everybody does not spend the same amount of money in a year. Some spend more, some less. One thing you must do to attain financial freedom is to control your standard of living, which also means, controlling one’s expenses.
Is this God’s will for you?
One thing that can keep many Christians from reaching financial freedom is believing that God does not want it for them. I tell you that financial freedom is God’s perfect will for you. Listen to this:
Jesus said in the book of John 8:32 :
“You shall know the truth and the truth shall set you free”.
All forms of freedom are God’s will for you including financial freedom. Also, the Bible talks a lot about inheritance . Inheritances are permanent possessions that bring benefits including money. Financially speaking, inheritances are assets that require little or no maintenance but continually bring income.
After all I’ve shared with you in this piece, ask yourself:
Is financial freedom God’s will for me?