Many people dream of being financially stable and leading a comfortable lifestyle. This lifestyle involves buying fine things in life and traveling the world without worrying about getting broke. Essentially, this is what financial freedom entails. This post lists the top 61 financial freedom quotes and the steps you need to achieve your own financial freedom. Click on these menu items to skip to the section you want to learn more about or scroll down to learn more: What Is Financial Freedom?So, what is financial freedom? Per MoneyFit, financial freedom means having sufficient investments, savings, and cash to fund your desires without having to work. In other words, you have enough income to pay for your living expenses. With financial freedom, you can afford to do things you like and choose a career path you are passionate about rather than your choices being driven by salary. Once you attain financial independence, you do not depend on others to survive. The Difference Between Financial Freedom And Financial IndependenceFinancial independence and financial freedom are similar and often used interchangeably. To attain both financial independence and financial freedom, passive income is required. However, there is a slight difference between the two terms. Achieving financial freedom is a journey or path through several milestones. Financial independence is one of those milestones. The 7 Stages Of Financial Freedom1. Dependent StageThere is nothing rosy about the dependence stage. If you are in a dependent financial position, you depend on others for financial support. At this stage, your expenses are more than your income. You start progressing through the other stages after you start earning a profit. However, you must be ready to work extra hard. 2. SolvencySolvency or survival is a stage where your earnings exceed your expenses. Life starts to become easier when you can pay your bills and financial commitments. You no longer depend on someone else for financial support. Financial solvency brings psychological benefits because you do not suffer from the anxiety that comes with being late on bills. 3. Stable/AgencyStability is the final stage of survival. In other words, you stop surviving and start thriving. This means you can live how and where you desire. When your income is more than your expenses, you can comfortably meet your financial commitments and pay off some of your debt, such as student loans and mortgages. What’s more, you have extra income to start saving into an emergency fund or even a long term saving plan. Although you may not be debt-free, you are making a consistent contribution toward becoming debt-free. 4. Financial SecurityFinancial security means that your income sources can cover your necessary living expenses if you lose your job. Your savings and investments are enough to allow you to live everyday life. Even if you do not ever have to work again, you can afford to buy essential clothing, basic food, and housing. 5. Financial IndependenceFinancial independence is one of the milestones towards achieving financial freedom. At this stage, passive sources of income can support your current lifestyle. Besides basic needs, you can also afford some comforts. There are three primary goals in the financial independence stage:
6. Financial FreedomAfter attaining financial independence, you will probably want to go a notch higher. Financial freedom is the lifestyle most people dream about. When you are financially free, you can afford high-end lifestyles such as flying first class or taking regular trips abroad. At this milestone, your passive income is enough to support comforts and luxuries without worrying about the expenditures. 7. AbundanceAbundance is when investment income is more than you need. Passive income can finance your lifestyle indefinitely. Most philanthropists are in this stage of financial freedom. They can share their wealth, lead a luxurious life, and explore the world. For instance, you learn to live on less than you make if you are working towards debt freedom. Also, financial freedom enables you to take more significant risks. How Much Money Do You Need For Financial Freedom?Because financial freedom differs for each person, there is no specific amount attached to financial freedom. Essentially, financial independence entails the freedom to base your decisions on things that make you happy instead of making you money. If you’re dead set on wanting to know a number, you can calculate your financial freedom number by using the four percent rule. According to the rule, you can withdraw four percent from your investments annually without ever running out of cash. For instance, if you have $100,000 in your account, you can withdraw $25,000 year after year without depleting your account. For the subsequent years, increase the annual withdrawals by the previous year’s inflation rate. For instance, if the second years’ inflation rate is two percent, you only have to increase the $25,000 by two percent. Initially, four percent was applied to 30 years’ timeframes. However, more research shows it may work longer than 30 years. How To Calculate Forever Financial Freedom1. Add Up Your SavingsAdd all savings, including savings account, checking accounts, retirement accounts, and taxable investment accounts. Do not include money planned to make purchases in the near future or college savings meant for children’s education. 2. Subtract DebtsThe next step is to minus debts from the savings. To be precise, add all auto loans, credit card loans, student loan balances, and consumer debts. The remaining amount after subtracting debts from the savings is the saving available for spending. You should not include mortgages in the debts. The home value covers the mortgage. 3. Use The Four Percent RuleThe next step is to multiple your net saving and investments by four percent. The figure you get is the current investments that can support your annual income indefinitely. For instance, let’s assume you have a total of $150,000 in your account and debts worth $50,000. The nets savings is $100,000. If you multiply the net saving by four percent, you get $4,000. This means that your saving can support an annual income of $4,000 for years on end until you die. The Cost Of Full Financial FreedomHow much money do you need to attain complete financial freedom? Absolute financial freedom is the amount of money you need to sustain your life without ever working again. Below is a step by step guide to determining the amount of money you need to attain financial freedom. 1. Add Monthly ExpensesCalculating the full financial freedom number also uses the four percent rule. The first step is to calculate your total monthly expenses, including rent, internet, groceries, mortgage, insurance, and car loans. 2. Find Annual ExpensesMultiply the total monthly expenses by 12 (12 months) to get the total annual expenses. The next step is to subtract the total costs from income. For instance, let us assume the net income is $10,000. This means you are making $10,000 more than you need to survive. 3. Factor In Passive IncomeOne of the ways to attain financial freedom is having a passive income. Passive income caters to expenses without necessarily having to work. This means that your passive income should be equal to or more than your costs. Examples of ideal sources of passive income include rental properties, employer-sponsored retirement accounts, ROTH IRAs, etc. What Is A Financial Freedom Number?Your financial freedom number refers to the amount of money you need to satisfy your living expenses. In simpler terms, it is the amount of passive income you need to pay for daily expenses. This means you can live without a full-time job and enjoy life using income from passive investments. While you don’t have to quit your job, you have the control and freedom to resign or retire if you desire. In essence, financial freedom instills you with confidence to make life decisions depending on your passions and desires. How To Calculate The Financial Freedom NumberYou can know your financial freedom number by calculating the average amount of your monthly expenses. Here is the step by step guide. 1. Figure Out Your Expenditure For The Past 12 MonthsThe first step is to calculate the total amount of monthly expenses in the last 12 months. Consider all the debt payments, donations, credit card statements, and bank statements, and any cash transactions. There are some automated tools such as YNAB or mint.com that can help you keep track of all your expenditures. However, some people prefer doing it the old way by putting everything in an Excel or Google spreadsheet. I created an Excel and Google Sheet you can use to budget your money. 2. Find Your Average Monthly ExpensesAdd the last 12 months’ expenses and find the average by dividing the sum by 12. This average monthly spending is your freedom number. If your passive income supersedes this number, you can live a financially free life. How Does It Feel To Have Financial Freedom?Without a doubt, finical freedom brings a feeling of stress-free living. If an issue crops up, you have enough money to fix it. Since financial consequences are the least of your worries, you can do anything you want without batting an eye. Benefits Of Having Financial FreedomBelow are some benefits of achieving financial freedom. Let’s get started. 1. Health ImprovementStress is linked with the leading six causes of fatalities in the United States. It causes health problems such as chronic back pain. Finances, including the activities and food we can afford, affect stress levels. Financial freedom can eliminate the stress that comes with not meeting your expenses and daily needs. Feeling healthy helps you to focus on essential things in life. 2. You Are Not Afraid Of Losing Your JobOne of the biggest worries many people experience is getting fired from work. Financial freedom enables you to take control of your destiny and leave your job on your terms. If you are fired, you won’t worry much about where your next meal will come from. Cash cushions give you a sense of resilience. This means you can bounce back stronger when faced with a disaster such as a family member’s health problem or death. 3. You Become Less Afraid To FailFailure is disastrous and even embarrassing. However, if your finance is in order, you can try numerous projects without fear of failure. Billionaires like Jeff Bezos can afford to experiment with multiple projects and entrepreneurship. Financial freedom helps eliminate fears so you can pursue action. 4. Feeling Of FulfillmentIf you are financially well-off, you can afford to take unique opportunities that many people can’t. The confidence to meet financial obligations using your saving enables you to choose how to spend your time. Essentially, financial freedom can make you more courageous and bolder. You can also afford to take a sabbatical leave from work, lead a healthy lifestyle, and quit a stressful job. 5. More Control Over Your TimeFinancial freedom gives you control over your time to choose how to spend your time. For instance, some people would leave their profession to pursue other interests, given the opportunity. When your passive income covers all your expenses, the choice to leave your workplace is up to you. Therefore, financial freedom frees your time. 6. Enhanced Self EsteemFinancial freedom can boost your confidence and self-esteem. The feeling of accomplishment enables you to enhance your life aspects such as relationships and living life to your full potential. How To Develop A Plan To Achieve Financial FreedomOnce you figure out your financial freedom number, the next thing is to determine when you want to achieve the goal. Making your goal time-bound is vital. It helps you stick to your plan and avoid an extravagant lifestyle. Top 61 Financial Freedom Inspirational QuotesThese financial freedom quotes will inspire you and help you get on the path to living the life you deserve. Attaining financial freedom is an admirable goal that can make you a respectable member of the public. It gives you the freedom to do things you love. Manoj Arora Financial Freedom Quotes1. “To achieve what one percent of the world’s population has (Financial Freedom), you must be willing to do what only one percent dares to do. Hard work and perseverance of highest order.” 2. “The struggle for financial freedom is very unfair. Just look at the rewards.” 3. “Financial Freedom is less about financials and more about freedom.” 4. “You can make excuses and earn sympathy, or you can make money and earn admiration. The choice is always yours…” 5. “You do pay a price for your financial freedom, but it is far lesser than what you pay for a lifetime of slavery.” Robert Kiyosaki Financial Freedom Quotes1. “Financial freedom is mental, emotional, and education process.” 2. “More important than how we achieve financial freedom is the why. Find your reasons why you want to be free and wealthy.” 3. “To obtain financial freedom, one must be either a business owner, an investor or both, generating passive income, particularly on a monthly basis.” 4. “Financial freedom is available to those who learn about it and work for it.” 5. “Financial freedom is freedom from fear.” 6. “Financial independence is about having more choices.” 7. “If you want to be financially free, you need to become a different person than you are today and let go of whatever has held you back in the past.” 8. “The philosophy of the rich and the poor is this: the rich invest their money and spend what is left. The poor spend their money and invest what is left.” 9. “The key to financial freedom and great wealth is a person’s ability or skill to convert earned income into passive income and/or portfolio income.” Suze Orman Financial Freedom Quotes1. “When you understand that your self-worth is not determined by your net-worth, then you’ll have financial freedom.” 2. “A big part of financial freedom is having your heart and mind free from worry about the what-ifs of life.” Dave Ramsey Financial Freedom Quotes1. “Financial peace isn’t the acquisition of stuff. It’s learning to live on less than you make, so you can give money back and have money to invest. You can’t win until you do this.” 2. “You must gain control over your money or the lack of it will forever control you.” 3. “I believe that through knowledge and discipline, financial peace is possible for all of us.” 4. “If you will make the sacrifices now that most people aren’t willing to make, later on you will be able to live as those folks will never be able to live.” Jim Rohn Financial Freedom Quotes1. “To become financially independent, you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn a profit into an investment, and turn the investment into financial independence.” 2. “Formal education will make you a living; self-education will make you a fortune.” 3. “To become financially independent you must turn part of your income into capital; turn capital into enterprise; turn enterprise into profit; turn profit into investment, and turn investment into financial independence.” 4. “If you are not financially independent by the time you are forty or fifty, it doesn’t mean that you are living in the wrong country or at the wrong time. It simply means that you have the wrong plan.” Other Inspirational Financial Freedom Quotes1. “Pursuing your passion is fulfilling and leads to financial freedom” – Robert G. Allen 2. “Financial freedom is the power to produce wealth and not necessarily having wealth.” – Stephen Covey 3. “Your economic security does not lie in your job; it lies in your own power to produce – to think, to learn, to create, to adapt. That’s true financial independence. It’s not having wealth; it’s having the power to produce wealth.” – Stephen Covey 4. “Real wealth is not about money. Real wealth is: not having to go to meetings, not having to spend time with jerks, not being locked into status games, not feeling like you have to say ‘yes,’ not worrying about others claiming your time and energy. Real wealth is about freedom.” – James Clear 5. “Working because you want to and not because you have to is financial freedom.” – Tony Robbins 6. “You either master money, or, on some level, money masters you.” – Tony Robbins 7. “The secret to wealth is simple: Find a way to do more for others than anyone else does. Become more valuable. Do more. Give more. Be more. Serve more.” – Tony Robbins 8. “Money is a terrible master but an excellent servant.” – PT Barnum 9. “Financial fitness is not a pipe dream or a state of mind. It’s a reality if you are willing to pursue it and embrace it.” – Will Robinson 10. “Rich people believe ‘I create my life.’ Poor people believe ‘Life happens to me.'” – T. Harv Eker 11. “My definition of financial freedom is simple: it is the ability to live the lifestyle you desire without having to work or rely on anyone else for money.” – T. Harv Eker 12. “To get rich, you have to be making money while you’re asleep.” – David Bailey 13. “Wealth is the ability to fully experience life.” -Henry David Thoreau 14. “At least eighty percent of millionaires are self-made. That is, they started with nothing but ambition and energy, the same way most of us start.” – Brian Tracy 15. “Money is something we choose to trade our life energy for.” – Vicki Robin 16. “The goal isn’t more money. The goal is living life on your terms.” – Chris Brogan 17. “I don’t believe in spending money lavishly, now that I’m making money.” – Ansel Elgort 18. “If you’re saving, you’re succeeding.” – Steve Burkholder 19. “Financial planning and discipline is key to one’s financial freedom.” – Kishorkumar Balpalli 20. “Millions wish for financial freedom, but only those that make it a priority have millions.” – Oscar Auliq-Ice 21. “Whenever you find yourself on the side of the majority, it is time to pause and reflect.” – Mark Twain 22. “The speed of your success is limited only by your dedication and what you’re willing to sacrifice.” – Nathan W. Morris 23. “Every time you borrow money, you’re robbing your future self.” – Nathan W. Morris 24. “Financial security and independence are like a three-legged stool resting on savings, insurance, and investments.” – Brian Tracy 25. “The habit of saving is itself an education; it fosters every virtue, teaches self-denial, cultivates the sense of order, trains to forethought, and so broadens the mind.” – T.T. Munger 26. “The secret to creating lasting financial change is to decide to pay yourself first and then make it automatic.” – David Bach 27. “Financial peace of mind is not determined by how much we make, but is dependent upon how much we spend.” – Marvin J. Ashton 28. “Money won’t create success, the freedom to make it will.” – Nelson Mandela 29. “The best thing money can buy is financial freedom.” – Rob Berger 30. “Don’t tell me what you value, show me your budget, and I’ll tell you what you value.” – Joe Biden 31. “Too many people spend money they earned to buy things they don’t want to impress people that they don’t like.” – Will Rogers 32. “Whatever your income, always live below your means.” – Thomas J. Stanley 33. “You don’t need to raise money. You need to be smart and be focused.” – Mark Cuban 34. “Now I will tell thee an unusual truth about men and sons of men. It is this: That what each of us calls our ‘necessary expenses’ will always grow to equal our incomes unless we protest to the contrary.” – George Samual Clason 35. “That man is richest whose pleasures are cheapest.” – Henry David Thoreau 36. “Wealth is not about having a lot of money; it’s about having a lot of options.” – Chris Rock 37. “Never depend on a single income. Make an investment to create a second source.” – Warren Buffett Financial Freedom TipsFinancial freedom means having enough savings, investment, and cash to cater to your family’s needs. This means you can pursue what you want without necessarily being driven by a particular salary. With the current economic conditions, most people are faced with emergencies, debts, and massive expenses that hinder us from attaining our life objectives. The good news is that you can achieve financial wellness by exercising certain habits. Below are some practices that will propel you to financial freedom. 1. Set A Life GoalThe first step is determining your life goal. What kind of lifestyle do you desire? The best practice is to write down how much money you plan to save. All these objectives must have a deadline. Setting financial mileposts at regular intervals helps you attain the ultimate goal. 2. Understand Your Current SituationBefore you figure out how you will achieve financial freedom, you must understand your starting point. In other words, calculate savings and compile a list of your debts. Your savings include saving accounts, retirement plans, stocks, and your monthly payment. Do not be demoralized by huge debts. Instead, develop a positive approach to how you view money. The biggest hurdle to making money is feeling like having it is bad. A negative view of money will subconsciously sabotage your chance of making it. Money is more of a necessity, and you need it to achieve your dreams and help others. 3. Create A Budget And Adhere To ItUnregulated spending is one of the biggest threats to attaining financial freedom. You must create a monthly household spending plan and stick to it. A budget helps you live within your means by helping with saving money and paying bills on time. Without a clear budget, you risk becoming extravagant and recklessly wasteful. 4. Pay Yourself FirstYou have probably heard financial experts recommend that you “pay yourself first.” The whole idea is to put a specific amount in your savings account before paying bills and other expenses. If you develop a habit of paying yourself first, you will inch closer to financial freedom faster. If the remaining amount is not enough to cover bills, you will be forced to get a second job or scale down on expenses. This helps to live within your means. 5. Become Debt FreeDebt is the biggest stumbling block to financial freedom. For instance, credit card loans are among the worst kinds of loans and can attract up to 40 percent interest. According to National Public Radio, the total credit card debt of Americans is about $1 trillion. On the same note, you must monitor your credit. Credit reports determine the interest rate you get for car loans, credit card loans, mortgages, and insurance premiums. Types Of Debt Repayment PlansWhile paying off debts is not a glamorous undertaking, it pushes you closer to financial freedom. There are two ways to offset your debts, the Debt Avalanche and Debt Snowball methods. The Snowball method involves paying debts starting with the smallest. Avalanche methods involve paying debt with the highest interest rate first. 6. Save, Save, SaveSaving is quite a challenge for many people. If you have a problem with saving, consider registering for an employer-sponsored retirement plan. Your employer will automatically deduct part of your salary and move it into a retirement fund. 7. Start Investing EarlyInvesting is the best way to grow your wealth. Start investing as early as you can. You can start with small amounts and watch the power of compounding to grow your wealth. Ensure you use a goal-based approach when planning how much you want to invest. This approach helps to determine the amount you will commit to investments in your monthly budget. 8. Live Within Your MeansOne way of achieving financial freedom is living within your means and mastering a frugal lifestyle. Frugality means making prudent purchases and managing possessions responsibly. It does not necessarily mean taking a minimalistic approach to life. Spending less helps you put aside more money towards your financial freedom plan. For instance, Warren Buffett still lives in the same house he bought in 1958 for $31,500! 9. Prepare For UncertaintiesAccording to Murphy’s law, anything that can happen will happen. This means that at some point in life, you will be faced with a financial downfall. Unforeseen expenses can derail your financial freedom objective. It is crucial to prepare for emergencies by getting medical insurance and creating a contingency fund. 10. Medical InsuranceWith the rising cost of healthcare, lack of medical insurance is a setback in achieving financial freedom. Heath bills can rise quite fast and deplete your savings. Luckily, health insurance caters to medical bills. You do not have to use your assets to offset hospital bills. 11. Create Extra Sources Of IncomeIf you desire to attain financial freedom, you need to go that extra mile. A nine-to-five job might not get the work done. Financial experts recommend having about seven sources of income. These additional sources of income can be either passive or active. Some of the side jobs that can earn you active income include freelance writing, virtual assistance, and ridesharing. On the other hand, some passive income sources to boost your earning include dropshipping, trading forex, investing in stocks, and affiliate marketing. Steps To Become Financially Free1. Figure Out Your Financial Freedom NumberOne of the vital steps in achieving financial freedom is determining the amount of money you require to become financially free. You can use the four percent rule discussed above. Financial freedom number is the amount of money you need to pursue your passions and live freely. With your current earning, what should you do differently to attain your financial freedom number? 2. Address Financial FearLimiting beliefs about money can affect anyone. For instance, some people think they can never be wealthy because they were born into poverty. Do you believe you can’t be financially free because you are not smart or talented enough? Once you figure out your limiting fears, replace them using assuring and empowering beliefs that you can achieve financial freedom. 3. Take A Deep Look Into Your FinancesFinancial problems will not disappear into thin air because you are earning more. You need to take a hard look into your finances and see the messes you need to clean up. For instance, do you have credit card loans that attract massive interest? If you have debts attracting high interest, most of your earning will go into offsetting the loans. Here is a good idea. If you get a bonus, use the funds to pay off your debts. After clearing debts, you will have more disposable income every month and more peace of mind. What It Really Means To Have Financial Freedom1. You Do Not Live From Paycheck To PaycheckMany people live from paycheck to paycheck, meaning they can’t cater for unforeseen situations. According to a US household Economic wellbeing report, 40 percent of American households do not have enough finances to cover $400 emergency expenses. Building an emergency fund is the first step towards financial freedom. These include paying off credit card debts. 2. Enjoy Life And SaveEarning enough income to do things you enjoy and save brings a sense of relief. If you have money to enjoy life and extra cash to save, you are most likely financially free. 3. You Can Afford To Quit Your Job (Temporarily)When you are financially free, formal employment becomes an option. This means that you can decide to quit your job or take some time off without worrying about financial consequences. While you do not have to quit your job, it is a great relief knowing you can quit any time you desire. When you attain financial freedom, you can afford a sabbatical leave or extended vacation in a foreign country. 4. Freedom Of TimeFinancial independence and freedom of time go hand in hand. When you have financial freedom, you are not trapped in the rat race. This means you can afford to follow your passion and spend more time with your family without having to worry about running out of money. 5. Enough Funds To Retire ComfortablySome people detest their jobs and, therefore, can’t wait to retire as soon as possible. Financial freedom means you have passive income streams to pay your expenses and retire comfortably. For instance, you may dream of traveling the world after retirement. To be financially free, you should save enough money to support your retirement lifestyle. Final WordWithout a doubt, everyone desires to achieve financial freedom. Achieving financial freedom means that your passive income streams to support your current lifestyle without working another day in your life. The good news is that you can attain financial freedom by developing a savings plan, investing early in life, and living within your means. Ultimately, you will be able to enjoy a life you have always desired. *Illustration by Freepik Storyset Via https://arrestyourdebt.com/financial-freedom-quotes/
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