Money Fundamentals

How to Reach Financial Freedom

The journey to financial freedom includes several key strategies to ensure your wealth is sustainable and impactful.

Welcome to the pinnacle of your financial wellness journey: reaching financial freedom.

Financial freedom is the financial wellness stage where your wealth covers your lifestyle indefinitely and allows for significant financial pursuits and contributions without impacting your financial health. It’s about the ultimate liberty to explore, innovate, and give back.

What is Financial Freedom?

Financial freedom transcends basic financial independence by accumulating sufficient wealth to pursue all your dreams, ambitions, and philanthropic endeavors without financial constraints. It involves a robust accumulation of assets that exceeds typical financial independence, providing the means to expand personal, professional, and social aspirations.

Financially free people have attained a high level of financial knowledge, accumulated enough wealth, managed money exceedingly well, and made mindful spending decisions. Reaching financial freedom, you have regained full use of your time to do as you wish or to serve a greater purpose.

Core Aspects of Financial Freedom

  • Time wealth
  • Wealth accumulation and preservation
  • Generational wealth planning
  • Philanthropic strategy
  • Legacy building

Achieving financial freedom is a rewarding process that demands meticulous planning and thoughtful consideration of the legacy you wish to leave.

Assess Your Financial Freedom

At this stage, you can answer the following questions:

  • How can you leverage your wealth to make a positive impact?
  • Have you built a diversified portfolio that sustains and grows your wealth?
  • How can your resources foster innovation or support the arts?
  • Have you developed a clear plan for philanthropic activities that reflect your values?
  • Do you have strategies in place for transferring wealth to future generations?

Being financially free means using your wealth to achieve significant personal and community goals, ensuring that your financial success has a profound and lasting impact.

Why is Financial Freedom Important?

Attaining financial freedom allows you to fully express your values through your wealth. It enables significant contributions to the causes you care about, supports the financial security of future generations, and facilitates a purposeful lifestyle.

This freedom enhances personal fulfillment and provides the peace of mind that comes from knowing your financial achievements have created lasting value and will continue to do so.

What does financial freedom look like to you? It’s the freedom to:

  • work at a job you love regardless of pay.
  • spend time on your interests and projects.
  • choose family over finances.
  • buy things and experiences.

How to Reach Financial Freedom

The journey to financial freedom includes several key strategies to ensure your wealth is sustainable and impactful. I covered these steps in more detail in Happy Money Happy Life.

Step 1: Evolve Your Money Beliefs

Challenge your beliefs about what it means to live well. Your time is the most valuable resource you’re born with. But we are taught to exchange that time for money. We’re left to believe money will solve life problems: it does not. Money will solve many of your problems but will not buy the inner peace and security you desire. No amount of money will make you feel secure if you don’t cultivate a healthier mindset. 

Financial fear affects many people, even those we may consider rich and have plenty of money. To live free, you must challenge your beliefs and face your financial fears. It’s important to understand the differences between being rich and being wealthy.

Step 2: Elevate Your Financial Habits

Financial freedom requires shifting your thinking, feeling, and doing, which can occur at any moment in your life journey. Living financially free means you save purposefully, earn effortlessly, spend mindfully, invest intentionally, give graciously, and live purposefully.

  • Save purposefully: Saving money is securing inner peace. When saving, you have an optimistic view of life, believing you will be around to enjoy the saved money. And when you give your savings purpose, you’re honoring your time.

  • Earn effortlessly: The financially free choose to focus on passive income streams, which require less effort and time in the long run. When you stop exchanging your time for a paycheck. You regain hours to focus on your health and interests.

  • Spend mindfully: Spend on what matters most to you. Otherwise, you’re wasting your time. Don’t exchange your time for non-value-added stuff. Cultivate the skill to get what you need and want. It’s not about choosing the cheapest option or depriving yourself of the best things in life. You can spend on nice things.

  • Invest intentionally: Investing your money allows it to grow to ensure your future time is about enjoyment, not employment. However you choose to invest, be intentional about how it will affect your happiness and well-being.

  • Give graciously: What is the purpose of all the money you’ve made if you can’t do any good in the world? When thinking about living financially free, consider the freedom to support purpose-driven people and worthy causes that fill your spirit, not just your pocket.

  • Live prosperously: You can’t control many things, but one thing you can is how you choose to see the world. It means seeing more opportunities than one can do in a lifetime. You’re not hoarding resources. There is enough for everyone. You’re living in a state of enoughness. And choosing what’s right for you.

Step 3: Advanced Wealth Accumulation

Focus on expanding your investment portfolio beyond conventional assets to include private equity, venture capital, and other high-growth opportunities that can significantly increase your wealth. Learn more about intentional investing.

Step 4: Wealth Preservation

Implement strategies like trusts, estate planning, and tax-efficient investing to protect your wealth and ensure it benefits the right people or causes at the right time.

Step 5: Philanthropic Endeavors

Develop a thoughtful and strategic approach to philanthropy that aligns with your values and maximizes the impact of your contributions to society.

Step 6: Legacy Planning

Establish clear financial legacy plans for passing on your wealth in ways that instill values, foster responsibility, and support the aspirations of future generations.

Remember that being financially free doesn’t mean you let your money do its thing without supervision. It simply means you don’t stress about money because you’re fully aware of how financially free you are.

What steps will you take next to ensure your financial freedom enables the legacy you envision?

  1. Continue reading our articles.
  2. Grab a copy of the financial wellness books.
  3. Enroll in the free 7-day financial wellness kickstart email series.

Do you need access to online brokerages and money apps? Visit the financial marketplace to discover the right financial tools.

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