GMR 94: Re-Defining Financial Freedom
Episode 94
What does financial freedom mean to you? No doubt, you have your definition of financial freedom, and more than likely, there's a dollar amount associated with it. In this episode of GMR, we'll share our idea of financial freedom and examine the assumption that financial freedom means having a certain amount of money and being able to retire.
Show Notes
Multi-Part Series on Investing
What we’ve covered so far:
Investing Basics, Diversifications, Stocks, Mutual Funds, Fees.
Risk Tolerance, how the news influences your investing decisions, and the importance of staying on your investment path.
We talked about these not only because they impact how we invest, but also because they are influenced by how we feel about the future.
Our Purpose for Getting Money Right
“Helping you to achieve financial freedom through education and inspiration, so you can be free to pursue your true life’s purpose.”
Let’s define this a little better
Anxiety and worry over money negatively impacts your life. Multiple studies that prove that worrying about money will negatively affect your
Health - Heart Disease/Attack, Gastrointestinal Problems, Weight Gain/Loss, Eating Disorders, Diabetes, Insomnia, even Cancer.
Productivity - work performance and your ability to be promoted
Relationships - money fights are a big issue in marriages and ultimately affect your happiness in marriage and other relationships.
When you achieve financial freedom you’re free to focus on what you’re good at, what you’re gifted and called to do, which always involves in some way, adding value to people.
What is Financial Freedom?
Freedom from fear around money.
Freedom from being anxious about money.
Freedom to live and pursue your true purpose without pressure around money.
Free from pursuing and desiring money.
Satisfied with where you are in life.
Having flexibility to be able to respond to needs around you.
Spiritual component - free to follow God’s will for your life.
What financial freedom doesn’t mean:
Doesn’t mean you don’t interact with money.
Doesn’t mean you won’t earn money.
Doesn’t mean you can’t make more money.
Doesn’t mean you reached a specific dollar amount.
You should still…
Live on a budget.
Pursue getting out of debt and living debt free.
Have savings to stabilize your living environment.
Be content with your finances.
Financial freedom isn’t about a number. We’re not in constant pursuit of money and achieving a dollar amount.
Is it possible that some people have already achieved financial freedom and they are not even aware of it?
What’s working behind the scene that drives us to do things like overworking, taking huge risks by engaging in get -rich-quick schemes, falling for investment advice that promises great returns and no down sides?
The Fear of Running out of Money in Retirement
Saving too little for retirement is a major fear of most Americans, and studies have shown that more Americans fear insufficient retirement savings than fear death.
Take it seriously but not too seriously.
Manage better today so you can save more for tomorrow
Money will never provide you ultimate security and happiness.
A life of leisure should never be anyone’s goal.
Cultural mindset of retirement in America…
Everyone retires at 65.
Desire to retire early - Age 55 or earlier.
1 Million Dollars is not enough to retire on anymore.
It’s like we believe once we’re retired we’re incapable of doing anything. When in fact the skills and experience we gained while working will usually allow us to offer more value because we’ll have more time to invest in doing work that matters. And more than likely it will provide not only the fulfillment of doing something of value, but also provide at least a partial income.
Retirement is better defined as: the ability to have enough resources set aside to allow you to work and do what you want rather than want you have to. It removes the burden to work for a paycheck and affords you the ability to do work that fulfills you. If you get paid, good, it’s an extra unexpected bonus, but not the reason you work.
“A generous person will prosper; whoever refreshes others will be refreshed.”
We have to challenge and break the mindset of what retirement is in America. Retirement in America is a cultural construct that isn’t truly fulfilling. It emphasizes complete leisure with no work, no adding value to society. This is absolutely crazy!
Every person has a purpose and if they choose not to find ways to serve others, their bodies will slow down and their spirit will give out. Dying much sooner than they would otherwise and not feeling fulfilled at the end of their life.
RESOURCES
Budgeting and Debt Elimination Tools
Jesus on Money by David Thompson - stewardshippastors.com