How to Achieve Your own Financial Independence

In the 21st century the concepts of time and money are being redefined. ''Financial Freedom'', is one such term that has gained much importance in the changing financial scenario. ''Financial Freedom'' means the freedom from continuous financial responsibilities through a planned management and allocation of assets. It frees a person from back-breaking work by giving him a steady source of income for life. One must not think that a financially free person is also debt free. However, his prudent asset management ensures that his debts do not become a burden but only a part of his over-all expenses. In this way, his debts do not hinder his long term financial goals. Financial freedom cannot be equated with being rich. One must not forget that surplus wealth requires constant supervision. In the long run, a rich man's obligations do not make him ''financially free'' in the true sense. Thus, financial freedom maybe defined as a lifestyle that blends expenses and income according to the individual preference. This makes ''financial freedom'' a more possible and convenient state of being. Financial Freedom is Time Freedom ''Time is money'', is the general belief in the professional world. This attitude does not allow space for leisure time. However, financial freedom has changed this concept of work by enabling a person to enjoy leisure without hampering his steady income in any manner. The entire concept of "financial freedom'' is based on assets and investments that are compounded over time to generate money. It takes care of the regular expenses and leaves a person with both time and money in his hands. A financially independent person is free from the clutches of time-for-money routine.

© How to Achieve Your Own Financial Independence 5 How to Achieve Your Own Financial Independence Achieving Financial Freedom To understand ''financial freedom'' one must come out of the traditional concepts regarding income and expenses. We have been taught that timely work generates money. ''Financial freedom'' opposes this concept of time-for-money swap and lets the money work for the individual instead. However, in spite of this advantage many professionals find it difficult to work without a fixed routine. Thus, to achieve financial freedom one needs to change their old mindsets and develop a new attitude towards earning money. One must realize that money is simply the means to achieve ends.