Have you ever thought about why you want to improve your finances and save money? This seems like an obvious question but trust us, sometimes it’s so common to get caught up in the motions and the habit of doing something that you forget why you’re even doing it in the first place.
When it comes to your finances, you always want to keep your why in mind so you won’t make unnecessary decisions or sacrifices that don’t end up helping you reach your goals.
Since this season is all about saving money, we want you to look at your reasons for wanting to save in the first place. For many of us, our core reasoning is to reach financial independence/freedom one day.
This may be a hidden goal of yours that you haven’t even considered but let us tell you why it’s so important.
Defining Financial Freedom
It’s pretty safe to say that most people probably don’t want to work forever. As you age, you’ll most likely realize that you may not be able to work forever even if you wanted to because your energy levels are likely to decline.
Since we all can add retirement to our financial wellness bucket list, it’s important to prioritize saving so you can become financially independent. Becoming financial independent is very similar to financial freedom because it means you’re basically free to do what you want with your money for the most part and you won’t have to work to support yourself.
In other words, you’ll have enough savings and passive income coming in to support your lifestyle so that working will be an option and not a requirement. Financial freedom sounds like a dream, but saving and investing your money can help you get there.
5 Reasons To Seek Out Financial Freedom
1. No debt to worry about – Reaching financial freedom means you’ll be free from money worries like debt. As glamorous and some things seem, no one wants to be in debt forever and spend several years of their life paying off their stuff.
2. Feel more secure – When you have enough money saved and invested to become financially free, you’ll feel much more secure and at peace whenever you think about your finances. You won’t have to worry about being unable to cover an unexpected expense, or not being able to make ends meet if you get injured and have to take time off work.
3. You’ll only have to work if you want to – Have you ever woken up one day and just been not in the mood to do any work? When you reach financial independence, you won’t have to work anymore unless you want to. You can pick up jobs to stay busy, but you won’t really need the money which will be an amazing feeling.
4. Freedom to do what you want – Another motivation for seeking out financial freedom is that you’ll have the freedom to live life on your own terms and do what you want with your money. If you value traveling, you can spend more time doing that or making more memories with your friends and family. If you want to pick up a unique hobby you’ll finally have the time to commit to it.
5. Retire early or take mini-retirements – Another huge reason to seek out financial independence is the fact that you can retire early or take several mini-retirements throughout your lifetime. You don’t have to wait until you’re 65 to become financially free. You can develop a plan that allows you to save and invest aggressively so you can retire early than that and enjoy more of your youth. Or, if you’d rather take a mini-retirement and stop working for a year or two to explore, becoming financially by saving enough money to cover your expenses during your mini-retirement will allow you the opportunity to make that decision.
In This Episode, We Discuss:
- 1:45 – Financial Independence
- 16:10 – Mini retirements
- 27:00 – Early retirement examples
Related Links to Check Out:
- Financial Freedom Definition
- Mr. Money Mustache
- Our Next Life
- Value Based Spending: The Easiest Way to Save Money
- The Road to Financial Wellness
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