It probably will not be easy, but it will be simple-and I promise that it will be worth it! Being consuming debt free feels amazing once you get there! You can get unburied from all that debt, just like we did. The $60,000 of debt that we had before we bought our first home was one of the main impetuses that set me on a quest to learn all I could about personal finance. Many people have been in the same circumstances, including yours truly. If you have had tens of thousands of dollars of debt, rest assured that your situtaion is not unique. In our credit-loving society, this is an amazing feat in and of itself it really is! Financial freedom is freedom from all nonmortgage debt.Īnother facet of being financially free is to be out of all debt except for the mortgage.
#Define financial freedom how to#
Learn how to create a starter emergency fund of at least $1,000, and learn how to build a full emergency fund as quickly as possible.ģ. Having an adequate emergency fund of at least three months (but I think six months is even better and recommend that amount) is crucial to your family’s financial well-being and their financial peace. Most families will have a major financial setback of $10,000 or more in a 10-year period, and if you don’t have the cash and you continue to rack up debt, then that emergency becomes debt that adds up to tie up all of your money. Financial freedom means having an emergency fund.Īn adequate emergency fund is a crucial part of financial freedom because you need an emergency stash to be able to pay for life’s unexpected (but inevitable) financial troubles.
Also learn how to save up to pay for large purchases with cash to end the debt cycle forever! Free yourself from bondage!Ģ. If you have gotten into a financial bind where you feel dependent on credit cards, know that there is a way to get out and there is a better way to live! Find out how to stop relying on credit cards. If you do not pay off your credit card balance every month, then you yourself are ensnared to an extent by this merciless captor.
If you have ever felt trapped by credit card debt or other obscenely high interest rate debt, then you know why I list this definition next. The first answer for what is financial freedom is that it is freedom from credit card debt. Financial freedom is freedom from credit card debt. Put another way, you could look at these 7 steps as a financial freedom plan or a financial freedom formula for success.ġ. You could also look at these as simple steps to financial freedom. In addition to the answer above, there are several other helpful answers to the question of what is financial freedom. 7 Simple Ways to Answer the Question “What Is Financial Freedom?”
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