Financial Freedom

Imagine a life where money is no longer a constraint, where financial worries are a thing of the past. Welcome to the realm of financial freedom, a journey that begins with understanding, planning, and strategic decision-making.

Here I’m going to write my first post on a new series on Principles.

In the amazing book Your Money or Your Life, the authors (Joe Dominguez and Vicki Robin) introduced the three Financial stages a financially healthy person would pass thru their life

Financial Freedom
Define what it actually means and what are financial steps to walk along this very path
First step is to acquire the so called Financial Intelligence
If you want to improve your life, you must acquire the first but most important skill: Financial intelligence

Financial Independence

Financial Independence means you no longer have to work to maintain your lifestyle since your money is working for you.

Your passive income will cover your living expenses and you will be free to choose what to do. You may keep current job, try a different career, go back to school, take entrepreneurial steps, work less, work none. It’s really up to you.

Level 4- Financial Freedom

Financial Freedom means removing money from the equation. It means, as Mr Money Mustache suggests in his Rule of Free, that you make all spending decisions as if the price were $0.00.

FF means you’ll cross FI threshold and either keep building wealth, to reach passive income streams that total well above your wettest dreams, or you reach a state were you don’t know what you would do with more money.