Definition of financial freedom
by Andrew of living rich cheaply...

Financial Freedom is having enough money where you no longer need to work for money if you choose not to.  It’s as simple as that.  This doesn’t mean you have to be rich and wealthy.  It just means that you have enough money to sustain the lifestyle that you choose. 

The best money saving tip I can think of is the simplest one.  Spend less.  Many people I know make a good amount of money, but they spend more than they earn.   There are only two ways to save more money: earn more or spend less.  Earning more is great, but spending less often requires very little effort and can easily be done.   Expensive cars, name brand clothes, high tech gadgets, eating out at fancy restaurants and other unnecessary material things really does not bring happiness.  If you are looking to be financially free and independent, go over the expenses you have each month.

Passive income is great.  It means that you are making an income without having to do much work.  However, true passive income is rare.  It is difficult to have a source of income which does not require much work. The only passive income I have is interest from bank accounts, Lending Club, and dividends from stocks.  Nothing too exciting, but it works. 

If your definition of prosperity is what you see on lifestyles of the rich and famous, driving expensive cars and living in huge mansions, then the only fast and easy way is to win the lottery or get a big inheritance.  If your definition of prosperity is having financial freedom and independence than I think it can be easy, well at least the blueprint is easy.  The blueprint is simple: Cut down your expenses, save more money and invest the money.  How fast you reach prosperity depends on how much you save.   Mr. Money Mustache and his family became financially free in 9 years.  That is fast!

Start your journey to freedom by starting to save and invest now without any excuses.  The earlier you start, the earlier you will reach your goal.  However, I think that a very big early step to take in your journey is to change your mindset to a frugal mindset.   Coming to the realization that spending more does not mean happiness will set you free and bring you much closer to financial freedom.

 



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