Financial Independence and Financial Freedom
During my talk in Napa I made a key distinction between…
Financial independence and financial freedom.
Financial independence is having a source of money to live without having to work every day to generate that money. Some people choose to live a modest lifestyle and can be financially independent with a small sum money. Other people need a 6-figure stream of passive or residual income to satisfy them. Whatever your number looks like…
Financial independence is a statement of account.
It’s a measure of income and overall net worth.
Financial freedom is being free of money. It’s having no fear and no worries about money, whether you have a lot or a little. Financial freedom is being a money master, not a servant to money.
I know people who have a lot of money and are financially independent, but are not financially free. They would be chained to their money if they had a billion dollars.
I also know people who earn a modest living wage, and who are completely financially free. They have mastered the art of being free of money despite not having a lot of it.
Financial freedom is a state of being. It’s a frame of mine. It’s a sign of healthy self worth if you can be OK with money, especially when you don’t have much of it. How much money you have does not reflect financial freedom.
Financial freedom is a peaceful state of mind from a centered state of being.
Winning the new game is experiencing both financial independence and financial freedom.
Set a goal to be financially independent.
Set up your life to be financially free.
Mitch, author of the forthcoming book, “The NEW Game of Money!” ™
CEO (Chief Encouragement Officer), Being Financially Free!