What does it mean to be Financially Free?

What comes to your mind when you think of being "financially free"?  

It's a term that gets used, but it's unlikely that we really understand.  I know I had no idea until not that long ago!

Freedom is one of those words that is often interpreted differently.  For me, freedom is being able to do what I want, when I want.  However, there are other people I need to consider as part of my freedom - my young daughter, my husband and my parents (who are both nearly in their 80s).  So, "freedom" is then tailored around my family, then comes friends, business, household chores, self-care, etc.  

Doesn't quite sound so "free" anymore, does it?

Well, there is perspective and mindset that goes with this, and when it comes to money it also is different for different people.

The important thing is to have thought about it and be conscious of what financial freedom is for you, so you can better plan for it, and then celebrate it once you have achieved it!

Here are some things that financial freedom can mean for you:

1. Choice - this is probably what I consider to be the biggest part of being financially free.  It gives you the freedom to choose where you live, how you live, whether to stay in a relationship or a job or a business.  Having enough money to be financially free on your terms is an important number to know.  Otherwise, what happens is there is anxiety and pressure that you put on yourself to reach a target that you aren't even clear on what it is.  For instance, if you could be financially free with $200,000 saved plus your superannuation, and you already had $50,000 saved, you are actually much closer that you realise.  Unless you "know your numbers", you won't know when you have reached the freedom of choice phase of your life.
2. Independence - being financially independent is something that was drummed in to me from a young age.  I come from a long line of strong women who had to rely on themselves to get ahead because of war and unrest in Europe when they were young.  What does independence mean though when it comes to money?  Does it mean you can cover the cost of your lifestyle?  Or, does it mean that you don't have anyone to answer to financially - no bank, or employer, spouse?  For me it's more the latter.  When I was pregnant with my daughter I was self-employed, so I know I wouldn't be earning for at least 6 months.  This is a bit extreme perhaps, but I was determined not to rely on my husband financially during this time, so I made sure I had a financial buffer to allow me to remain financially independent.  This may not be relevant for you, but it's important that you understand what you need to feel financially independent.
3. Pay the bills - being able to pay for your life's expenses might be what financial freedom is for you.  That is completely OK.  We all have our money stories and the experiences we had growing up (like mine above) will colour how we see money and the decisions we make about money.  Being secure enough financially to pay your bills on time is a great feeling.
4. Help your kids - while I grew up with "financial independence" as a mantra, I am growing a nest egg to help my daughter once she is old enough.  I have watched the prices of things go up so much as an adult, that I don't want her to be laden with a large amount of debt.  Seeing how time compounds with money is something I'm also interested in seeing.  This is something that is important for me.  If it is for you, then you can add this to your definition of financial freedom too.

There are many more things that I could add here. The important part is to start thinking about what Financial Freedom is for you, and what you need in order to get there (as in how much money, which what you need to live on per year multiplied by the number of years you are likely to need this for).