Do you think financial independence is the same as financial freedom?
Many people mix them up when they talk about it, but they are not the same. Here you find the difference.
Many people, I would say most people in fact, would probably say that financial independence is the same as financial freedom. I say it's not!
You may search online for the definition, and for financial independence you may find things like:
“the state of having sufficient personal wealth to live, without having to work actively for basic necessities.”
“Individual or family that can provide for, from its own resources, at least two of the three major expense categories: housing, food, and other living expenses.” or
"Financially independent people have assets that generate income (cash flow) that is at least equal to their expenses. Financial independence means you have enough wealth to live on, without working."
Finding a definition for financial freedom is a little more difficult, so let us define it for ourselves instead, since the sources that are out there vary a lot in their description.
As the quotes above indicate, having financial independence means that you have enough passive income (not having to work actively for money) to cover your current expenses.
That give you the choise to work or not, depending what you want to do. Thanks to the passive income from your current resources, you have enough passive income every month to cover your passive oucome (your bills). Os, if you choose to, you can maintain your current lifestyle without working a day more in your life. You are independent from having a job.
So, what is then the difference....??
As the word freedom indicates, with financial freedom, you have enough passive income that you have the freedom live a different lifestyle, the lifestyle you want to live, where you have the ability and opportunity to do what you want in life, without having to worry about money. You have all the money you want, to travel, buy things, do things, experience things, learn things, meet interesting people, or whatever you want, within the moral and legal limits of the society.
That is financial freedom!
So to summarize; with financial independence you are able to maintain you current lifestyle without working, and with financial freedom you are able to live your desired lifestyle, doing what you want in life.
Now, knowing the difference - what do want in your life?
Live with passion - make your life magical