Financial Freedom & What It Means
Discovering Financial Freedom With Amida Wealth
August is National Wealthness Month with Amida. It is all about building financial knowledge, and then understanding how to bring that financial knowledge into living a wealthy life. In honor of national wealth, This Sunday, we explore the concept of financial freedom. What does financial freedom mean for different authors, generations, and you? Most importantly, how do we get there? The term “financial freedom” is used often – so rather than choosing one unique perspective, let’s explore deeper!
Financial Freedom & Popular Reads
There are numerous books that discuss financial freedom, each offering unique perspectives. Here are a few:
- “Rich Dad Poor Dad” by Robert Kiyosaki: This classic book emphasizes the importance of financial education and differentiates between “assets” and “liabilities.” It suggests that creating passive income through investments and entrepreneurship is key to achieving financial freedom.
- “The Total Money Makeover” by Dave Ramsey: Dave Ramsey’s book promotes a step-by-step plan for managing money, getting out of debt, and building wealth through a series of baby steps. It emphasizes the importance of living below your means, budgeting, and following a disciplined approach.
- “Your Money or Your Life” by Vicki Robin and Joe Dominguez: This book focuses on the concept of “life energy” – the time you spend earning money. It encourages readers to reassess their relationship with money, prioritize spending based on values, and strive for financial independence by reducing expenses and building savings.
- “The Automatic Millionaire” by David Bach: David Bach introduces the concept of “paying yourself first” by automating savings and investments. He discusses the power of compound interest and making financial decisions that align with long-term goals.
- “The 4-Hour Workweek” by Timothy Ferriss: While not solely focused on financial freedom, this book introduces the concept of lifestyle design, including building businesses that can be automated or outsourced. It encourages readers to challenge traditional notions of work and retirement.
All in all, it’s important to note that all of these well known authors, and leaders in the field, have a different strategy. Some include the word “budget”, and others are more focused on wise investment choices and living modestly. When it comes to money, there is no right way. There is only a right way for you. That being said, let’s share what Financial Freedom means for Amida.
A Brief History Lesson on “Financial Freedom”
First, Where did the term financial freedom originate from? In the 19th and early 20th centuries, literature on personal finance and self-help began to emerge. Authors like Benjamin Franklin, George S. Clason (“The Richest Man in Babylon”), and Napoleon Hill (“Think and Grow Rich”) wrote about the principles of financial success and wealth accumulation.
The mid-20th century saw the expansion of consumer culture and the rise of modern financial planning. The concept of financial security and achieving freedom from financial constraints gained popularity as people sought stability after the disruptions of World War II.
Today, “financial freedom” is commonly used to describe a state of financial well-being. Where an individual has accumulated enough wealth or passive income to cover their living expenses, and pursue their desired lifestyle without being reliant on traditional employment. In other words, this mindset choice involves proper strategy, financial allocation, and planning.
The Concept of Social Security
The history of Social Security dates back to the late 19th and early 20th centuries when the concept of providing financial support to individuals who were unable to work due to old age, disability, or other circumstances gained traction. The original Social Security Act established two key components: the Old Age Insurance (OAI) program and the Unemployment Insurance (UI) program. The OAI provided monthly retirement benefits to individuals aged 65 and older, while the UI offered temporary assistance to unemployed workers.
It’s important to note that the specifics of Social Security policies and regulations have changed over the years. In the past, people relied on Social Security for retirement. Today, this is no longer the case! In fact, the term “Financial Freedom” represents, what was known as “Retirement” in previous generations.
Financial Freedom The Amida Way
As mentioned above, Financial freedom is a new term that has been coming around lately. It is a newer way of thinking, brought in by the younger generations. In order to achieve Financial Freedom, we all need to do the work. We have to be able to plan, and effectively strategize.
Financial freedom takes forward thought – we learn to allocate our money properly so that we can enjoy all stages of life. For example, at age 40 how do we forsee our financial health at age 90? 100 even? At this day in age, people are living longer than ever. So, that being said, how do we live in the present all while planing for the future? This is financial freedom! Above all, Financial freedom is a mindset that we consistently adapt to, the more educated we become. The path to wealth is possible, with the proper tools and right financial advisor. There is no right answer – there is only a right way of living for you!
Amida Wealth Family Conversations
At your next family or friends gathering, share this blog! Encourage those around you to become more interested in the concept of Financial Freedom and what it represents. Perhaps, the old ways of thinking are no longer as relevant as they were before. As times change, so do we. Embrace your path to wealth.
In conclusion, you have to plan for financial freedom because it doesn’t just happen. This process does not happen overnight. However, with a financial advisor that understands your lifestyle goals, Financial Freedom is possible. The retirement of today requires education and the proper tools necessary to adapt to modern day life. That being said, financial freedom is possible. This begins with taking your next big step, today! Send us an email: firstname.lastname@example.org. You never have to walk this path of wealth alone!