Well, you may have everything that you need and you may have more than enough cash to buy the things that you want, but still be financially dependent. Financial freedom is a broad word that has many attributes to it. It is the ultimate goal of every adult; which is to be free in managing your own finances without compromising your needs and wants.
Every adult gets welcomed to their entry on being independent by paying their first bill and their first rent. Becoming independent takes a huge step, but becoming financially free or achieving financial freedom is a much bigger leap. To evaluate yourself on whether or not you are truly financially free take a look at the following key indicators of financial freedom.
You live in your Own Place
Regardless of whether or not you are renting or you are paying the mortgage of a place where you are staying, having your own space lets you take on a lot of responsibilities. If you are able to juggle these responsibilities and make everything work from one pay period to the next then you can say you have some degree of financial management skills. People who claim they have achieved financial freedom, but are still living in their parent’s house are only fooling themselves.
You Don’t Zero out your Paycheck
Financial freedom means being able to meet your needs and wants and still have something to set aside for the future. If you are always zeroing your payroll account to the point of being on a zero or on a negative balance means there is serious work that needs to be done. You cannot have financial freedom for a few days and be bound to paying debts for the rest of the year.
You have Investments
Whether you are saving on a life insurance, investing on stocks or trading on binary options always have something that will allow you to save or grow your money. Financial freedom also means being able to survive a financial blow.
Say if you get laid off today it usually takes 2 – 3 months to get settled and earn again from another job. Ask yourself if you have saved enough money to survive that duration. If you answered no, then you need to work harder on becoming financially stable.
You are not a Slave of your Wants
People who have a strong sense of financial freedom control their wants. Do not let your cravings for food or fashion items have you shopping every payday. Mature financial managers schedule these activities quarterly or semiannually on end of season sales where they can get the most out of their money.
When you shop invest on quality or on something that you can use for a long time. Financial freedom is challenging to achieve, especially if you have a lot of bills to pay. If majority of these indicators do not apply to you then use it as a guide to move things around so you get yourself on the next ride to ruling over your finances.