The 1st “P” to Financial Freedom

Financial freedom can mean many things. Depending on your background financial freedom may mean having financial security to pay the monthly bills or it may mean having the financial resources to travel the world. Before you can achieve financial freedom you must first define what that term means to you.

There is no right or wrong way to personally define what financial freedom means to you. It is a personal definition. Some people are content with knowing they have the basic necessities in life looked after and they can maintain a comfortable lifestyle. Others may want more out of life and want to travel and see the world. Perhaps your ambitions are somewhere in between these two concepts. However you would define financial freedom is just fine.

Your passions in life will likely dictate how you define financial freedom. If you have the financial resources to pursue your passions while maintaining a comfortable lifestyle then you are likely living intentionally. By this I mean you have the financial resources to pursue your goals, dreams and ambitions (your passions) in life.  This is the 1st “P” in becoming financially free.

Before you can pursue your passions you need to know what they are. This may sound obvious but it is surprising how many people cannot name 1 thing they would like to do if they had the financial resources. I would always ask clients “what is 1 thing you would like to accomplish if you had the finances to do so?” Most (but not all) people can name 1 thing. Now what about 2 things you would like to accomplish? What about your top 5?  Your top 10? Well you can see where I’m going with this. When you can name your top 100 things you would like to accomplish in life and have the financial means to achieve them would you then say you have achieved financial freedom?

I call this list the Dream 100 list. You may think if it as a “bucket list”. Regardless of what you call it, when you can plan to do the things you want to accomplish in life and have the financial means to achieve them you can then live intentionally. You have a reason to get out of bed in the morning. You have something to look forward to accomplishing.

So before moving on to the next step in financial freedom you first need to know what financial freedom means to you. You need to know what it is you want to achieve in life and what resources you will need to accomplish those things. Tomorrow I will reveal the 2nd “P” to becoming financially free. Here is a clue to what that is … it will require multiple items.