Financial freedom is such a powerful word combination when you really stop and think about it.

Just imagine having the ability to enjoy life on your own terms.

I mean, who doesn’t want that?

However, I feel like a lot of people have the wrong idea of what it actually means.

Chances are, we’ve all seen shows like Lifestyles of the Rich and Famous, Keeping Up With The Kardashians, and any series in The Real Housewives franchise.

So, that could have you envisioning financial freedom as having million-dollar homes, luxury yachts, and driveways filled with Mazarattis and Bentleys. 

I mean, it’s all so over the top that it seems difficult to achieve, right?

Well, you know what?

It’s actually much easier to reach financial freedom than you think.

The problem is that most people feel like they’ll never get there because of these 3 myths…

• First, they think financial freedom only applies to rich people. Or,  
• Second, they feel like they’ll be stuck with debt for the rest of their life. And…
• Third, they believe it will take forever for them to actually achieve it.

Hey, it’s okay. I used to think the same way.

However, since becoming 100% debt-free, I now have a whole new perspective on financial freedom.

So I’m going to dispel some of the inaccurate myths surrounding it.

But, before I do that, let me elaborate on… 

What Does Financial Freedom Mean

So, first, let me say that Financial freedom has nothing to do with being rich and making millions of dollars. 

Case in point, I met a business owner who was earning $1,000,000 a year. And to most people, that would be considered rich, right?

However, his lifestyle was costing nearly $2,000,000 a year. So despite being a top 1% income earner, the business owner admitted to still feeling overwhelmed and stressed out by bills.

Now, tell me — does that sound like freedom?

Nope, not to me.

The truth is that financial freedom is about taking ownership of your finances and your life. 

It’s about giving yourself the privilege of having options.

And, it’s about making smart money decisions that will allow you to use your income to your advantage. So that you can create a financially secure, comfortable, stress-free life for you and your family.

But what most people don’t realize is that financial freedom actually has levels.

And while pursuing my own financial journey, so far, I’ve discovered three.

Financial Freedom Level 1

Now, as you know, most people are living paycheck to paycheck. 

SO– the very first level of financial freedom simply means getting your income to work the way it’s supposed to be working.

That means:

• Paying bills on time. 
• Having breathing room in your budget. 
• Having at least a $1,000 emergency fund. And…
• Being able to buy occasional extras like a $15 toy for your kids or a $50 date night dinner with your spouse without worrrying that you’re taking away from bill money. 

On top of that, you also don’t have to charge your everyday expenses or add to your debt.

In other words, the first level of financial freedom means that you’re able to live your life comfortably and not suffer living paycheck to paycheck. 

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Financial Freedom Level 2

Now, this level is all about debt freedom and building wealth.

So, once you become 100% debt-free, you’ll be amazed at the enormous weight lifted off your mind and your spirit. And you’ll begin to better focus on all the possibilities for your life.

For instance, you’ll have more time-freedom because you won’t need to work as hard as you did before.

You can do more of the things you actually enjoy, like spending quality time with your kids, traveling, and self-care.

Plus, you’ll appreciate your money more because now all of it belongs to you and not your creditors.

This is also the level where you can focus on increasing your wealth by:

• Skyrocketing your savings
• Investing for the future
• Pursuing things you’re passionate about, like starting or growing your own business

Financial Freedom Level 3

So, I feel like the third level of financial freedom happens once you’ve reached Financial Independence. 

Now, I know a lot of people may use the terms financial freedom and financial independence interchangeably. 

But what I’ve discovered is that:

If you are financially independent, you will have financial freedom. 

BUT, you don’t have to be financially independent to achieve financial freedom. 

FYI, for financial independence, here’s a rule of thumb…

You should have enough money to cover your annual expenses for at least 25 years — even if you never earned another dime.

For instance, if your lifestyle costs 100K a year, you’ll need 100K x25 years. That means you’d need a net worth of $2.5M to consider yourself financially independent.

With that said, I also believe there are additional levels once you reach financial independence. But that’s a topic to explore for another time. 

Now Over To You

So just to recap.

Financial freedom has levels. And…

• 1st level is paying bills on time and creating breathing room in your budget for extras.
• 2nd level debt-freedom and focusing on building wealth.
• 3rd level is financial independence which means you can live off your savings for at least 25 years.

Now, the cool thing is that getting to the very first level of financial freedom is easy. You just need to take steps to get your income to work the way it should be working. 

There is so much information available that anyone can do it on their own. 

The most important thing to remember is not to let the myths or grandiose images of financial freedom hold you back. 

But the best part is that you don’t have to go from zero to 100 to reach financial freedom. You just need to take things one step at a time, which is like going from zero to 10. 

And doesn’t that sound much more doable?

However, if you need a little help to get started, click the image below. I’m happy to help.😊