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.

Financial independence

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.

Finanical freedom

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

About the author
Michael Wesley
Author: Michael WesleyWebsite: https://michaelwesley.seEmail:
Entrepreneur, Freedom creator, Life management strategist & coach
Short presentation
With a deep and fiery passion Michael helps people discover all their inner resources and potential, to create internal and external freedom, to achieve control and to own their life.

He is also passionate about passing on a legacy where we all contribute to a better world, a community built on respect, care, cooperation and love. As an authority in life management strategies, Michael works with a results-driven focus to assist, coach and mentor his clients in developing their mental and physical resources and ability to achieve amazing continuous successes, on their path to excellence and mastery.
Some other articles of mine...

Please leave a comment on what you think of the page, it's content or what you would like to read more about.

Wealth blogs

image

6 reasons to do JV partnerships

Joint Venture - Yes or no?

Joint venture has many great advantages - here you will find a few.

image

Mortgage update UK - 2020-04-23

Lendning on UK property market CLOSED!  Or is it?

image

You will never be wealthy - just saving money

In our society today, we often hear people representing banks or financial institutions to urge you to save money, so that you have a pension to live on, or to become wealthy or financially free.  

image

Financial independence is not equal to financial freedom

Do you think financial independence is the same as financial freedom?

image

What is passive income?

What does passive income really mean?
Is it something that I should have? Do I need it? How can I get passive income?

Time & Personal development blogs

image

Challenge - Day 3

GOING BEYOND YOUR LIMITS

image

Challenge - Day 1

HOW TO TURN RAIN INTO SUNSHINE

image

How to Grow and Excel

Do you know how to become excellent at something?  To become  a master?  How to be a Top Gun?
You need to decide!  You need to decide to become the best you can be and to challenge yourself, so that you grow.

image

How you do anything is how you do everything!

What does this mean and why is it important for your success?

image

How you do anything is how you do everything - My experience

Have you ever considered the saying and really reflected upon it?  I have...

Health blogs

image

3 of 6 - Excercises for energy & a strong immune system

The third article in the series - 6 ways to stay healthy and happy despite Covid-19

image

2 of 6 - Go outside, be in nature

The second article in the series - 6 ways to stay healthy and happy despite Covid-19

image

1 of 6 - How to Practice Gratitude

The first article in the series - 6 ways to stay healthy and happy despite Covid-19

image

6 ways to stay healthy and happy despite Covid-19

When fear is grabbing your heart, it is more likely that you get sick. 
Learn 6 essentials ways that are crucial for the quality of your life.

image

The power of a pre-planned program

THE NEW TRAINING PROGRAM – WEEK 3 – SESSION 2 – DAY 17