Definition: Financial Freedom

Financial freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses. Contrary to popular belief, it does not require being free of debt, as a debt payment is just another expense. Typically, "Financial Freedom" can be attained in one of two ways (or a combination of the two): 1. Enough passive investment income to cover one's expenses. 2. A large enough "nest egg" that can be liquidated over time to cover one's expenses. Simply said, financial freedom is one point in life when you do not work for money anymore. To achieve financial freedom, one of these are typically popular routes: Property or Real Estate Investment;paper assets,such as stocks and bonds; Owning a Business System. Loosely defined, "financial freedom" is also a marketing catch phrase commonly used by financial planners. The downside is, the phrase also often employed in attempts at advance fee fraud. E-mail and snail-mail solicitations often promise "financial freedom" in return for a couple of hours a week work, or in return for sharing one's bank account information with the widow of the director of Nigeria's central bank, etc. The statement Financial Freedom is used by financial institutions to convince the public to give them their money thinking that these very institutions will achieve financial freedom for the public, when in fact it further creates financial freedom for the institutions and the public gets what's left. Only people can create financial freedom for themselves. Most people lack the needed financial education to create wealth therefore they fall prey to false promises.nnWikipedia, the free encyclopedia © 2001-2006 Wikipedia Contributors (Disclaimer)This article is licensed under the GNU Free Documentation License.)