You have achieved financial freedom when you have sufficient passive income to support your lifestyle and you work because you choose to, not because you have to.
There are many “ordinary” people who enjoy financial freedom, and you can be among them. But it might not be a comfortable process getting there. A lot depends on your financial conditioning.
You might have to change some beliefs and actions that are familiar to you now and feel like they are based in an objective reality, when in fact, there is no such thing. A belief is just a thought you keep thinking. Beliefs can change, and so can your opinion about what is real and what is possible.
The financial conditioning for the majority of people goes something like this:
* Go to work for a stable company and you will have job security.
* Work hard and you will earn a fair income.
* Avoid debt because all debt is bad.
* Minimize spending and put your money into savings.
* Focus on funding your retirement. Retirement planning should pay a fraction of what you made during your working years.
If these money statements sound familiar - even if they don’t ring true, or make sense - then your financial conditioning needs revision in order for you to achieve financial freedom. For starters, rather than planning for retirement, how about planning for wealth?
First step: know exactly where you are right now- your net worth as of today. List all your assets, from cash on hand to retirement to home equity. List all your liabilities, from mortgage to credit card to student loans