What is Financial Freedom? A Guide in Achieving Financial Health 

Imagine living a life where you have enough money and financial independence to do what you want to do each day, without having to worry about the next pay day, or holding down a job.

You have a sufficient financial cushion in the form of savings and investments to cover all your living expenses and other financial goals.

While it may sound like a dream, some people do achieve this in reality. Of course, financial freedom can mean different things for different people. For some, it could be about having enough money for a retirement income stream that allows them to live comfortably in their post-career years while pursuing their hobbies and interests. For others, it could result in being able to travel, start a business or work part-time and volunteer for favoured community causes.

Ultimately, it is about having the ability to make life choices without being constrained by financial limitations.

Financial planning is the key

Financial freedom rarely comes about through luck, however. Such a state typically requires discipline, planning and sitting down with a qualified financial adviser who can help you create a long-term financial and wealth-creation plan. It often may also require taking the following steps:

• clarifying your financial goals, life motivations and having a positive mindset – as well as a budget that clearly identifies your discretionary expenses, non-discretionary expenses and savings plans
• building up a safety net of a few months of expenses, at least, to ensure you have enough money to cover unexpected events. You should also factor in risk-mitigation strategies such as taking out income protection insurance
• creating a source of passive income from investments such as property, shares and superannuation
• spending modestly early in your life or career – and eliminating debt – so that you can reap the benefits of a healthy investment portfolio later in life.

You do not have to be rich to have financial freedom, but you do need a plan and financial self-control. Why not start today?

Access highly skilled financial advisers through Mercer Financial Advice who have significant experience in the areas of wealth accumulation, investing, insurance, superannuation contributions and retirement strategies.