Well, Financial freedom is a term to define the level of freedom you have to make crucial decisions in your life. In other words: how financially stable you are so you can do whatever you want whenever you want, without asking anybody.
And with this simple calculation, you can know right now how financially free you currently are:
everything you own minus everything you owe
The total resulting from this calculation tells you how financially free you are to make decisions like changing career, retire early or start that dream business you have in mind.
This calculation is called Net Worth, in case you want to sound cool and smart, and to make it easier for you, we created a calculator that you can download for free. Just click the link below and find out how free you are!
So, If this value is negative, we are in trouble. That means that if you want to go back to college or start that dream business, you will put your family in a significant risk because you don’t have any money to take this big step.
If it is positive, good! You are in a better position than most of the people out there!. But be careful, if the total is too low, let’s say only $100 you better eat healthily and drive your car carefully because you won’t be able to cover any emergency.
If you’re wondering, how can I become financially free? Simple, you just need to spend way lower than what you make. The bigger the gap, the bigger your freedom so then you can pursue your dream: you can change your career, retire earlier, or just take a year off to spend with your family…
So now you know! Some people might look very rich, but in reality, they have no financial freedom at all. While someone that looks very poor might be very wealthy. Never judge by their appearance.
Next week Kate will continue with our 3-part video series about financial freedom and she will be talking about the steps you have to follow to become financially free. So If you are new here, consider subscribing and sharing this video with other people that could benefit from this type of content. Keep crashing your money goals, and we will see you next time!
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