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Wednesday, February 2, 2011

Defining financial freedom

Financial freedom is a culturally derived social construction
Financial freedom is a concept that includes the idea of wealth
Fiscal freedom may be considered by some to be a financial extension of the natural liberties afforded to human kind within the bounds of the law, as determined by such individual's town and country.

For persons not so enamored by money, financial freedom may simply mean not having to worry about money, rather than what it can make possible. Moreover, having too much wealth may actually become a burden of responsibility as managing great amounts of wealth could involve some legal, accounting and financial management headaches.

However, for those who do not feel burdened by excessive wealth, financial freedom may include a far more extensive set of requirements. Several key features similar to any kind of freedom can naturally be associated with financial freedom. A few such key features consist of the following:

Choice: The freedom to choose different lifestyles and standards of living.
Freedom from debt: Having no debt and/or the ability to pay off any debt as needed.
Subjugation exempt: Not being subject to financial subjugation or control.

Aspects of financial freedom

Additionally, in terms of the various phases of a human's life and specifics of financial freedom, the above features are ideally expanded upon when one is financially free. These elements of financial freedom can involve family, goals, wishes, desires, security, health and other areas of life where finances may have an impact. Some of these facets of life which financial freedom may include are illustrated below:

Material wealth: The ability to purchase many things relating to the material goods and services in life such as travel, standard of living, health care, style and entertainment.

Fiscal/commercial capacity: Financial freedom includes the leverage to engage in the activity of commercial business of various kinds.

What financial freedom isn't

Money can't buy everything, and thus financial freedom cannot include things money cannot buy. For this reason it is necessary to indicate what financial freedom isn't for the purposes of delineating parameters of what it is. A few of things financial freedom is not per se are listed below:

Emotional liberation: Not being tied down or burdened by emotional weight such as guilt, shame, fear, doubt etc.

Religious choice: Having the freedom to choose the religion one believes in without persecution or political marginalization.

Political freedom: Safe belief in and speech about differing political positions and/or opinion.

Spiritual enlightenment: Knowledge and presence within a higher spiritual plane and possession of spiritual skill, insight and deliverance.

Quality of life: Different from standard of living, quality of life may include the above freedoms where as standard of living may not.

There are many facets and areas of life financial freedom might extend its hand. It is also correct that money can't buy all the imagination conceives, thereby not necessarily enabling all forms of freedom. However, wealth can buy a great deal of what the world has available to consumers. Consequently, financial freedom may facilitate an easy, obstacle free, burden-less and entertaining life. In sum, financial freedom can be defined as the ability to self-define one's own destiny insofar as one's life can be determined by means of money.

Image license: keep_bitcoin-real, CC BY 2.0