When you hear the term "financial freedom," what comes to mind?

Frugality. Sacrifice. Success. Independence.

In my experience, this term is loaded with broad misunderstandings that cause many people to misappropriate their time, money, or sometimes both.

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Financial Freedom

If you ask people what "financial freedom" means to them, most will probably focus on one of two things:

1. The Financial Part. Some will focus almost exclusively on the "financial" part of the equation and jump straight to how much money is required to achieve financial freedom. These people tell themselves they can only feel financially free once they reach $X million, only to move to a higher number later. In doing so, they mostly ignore the value of more time (freedom).
2. The Freedom Part. Others will focus primarily on the "freedom" part of the equation, assuming that they must be free from the shackles of work to enjoy the freedom they envision. Thus, they ignore the value of what more money could mean for their lives.

Do you identify with one of those more than the other?

As you have probably figured out, true financial freedom isn't about choosing one or the other.

It's about finding a balance that works for you.

And balance is key because we know that extremes are sure paths to unhappy outcomes.

For example, we intuitively know that an abundance of money with no time is a recipe for misery.

But unlimited time with no money is likely to be equally miserable, albeit for very different reasons.

Hence, the importance of balance.

My good friend Carl Richards often says:

I think the same could be said of financial freedom since it's really about having the means to live a lifestyle that is fulfilling to you.

Yes, it requires money, but living life on your terms generates a feeling.

So, how can we achieve the feeling of being "financially free?"

I hope this is obvious, but the first and most important step is deciding how you'd like to spend your time.

Here are some questions to help you get started with this exercise:

• What does an ideal week look like for you?
• When would you get up?
• Would you exercise right away?
• Schedule regular lunches with a friend?
• Play golf/tennis/pickleball/[insert hobby] every day?
• Learn a new skill?
• Spend more time with your children or grandchildren?
• Would you want to relocate?
• How much would you like to travel, and to where?
• How would you plan to stay mentally sharp?
• Would you like to continue working in your current field or not at all? Or get a part-time "fun" job?
• Would you work for a non-profit—either on a paid or volunteer basis?
• Would you spend time reading or learning a new skill?

There are infinite questions and no wrong answers.

In thinking about your ideal week, you may find that your preferred lifestyle requires less money than you thought, or maybe more.

It might include some form of work, or it may not.

Again, there is no one right way to live, but I believe there is a path that leads to a truly fulfilling life, however you define it.

Stay wealthy,

Taylor Schulte, CFP®