What Is The Difference Between Financial Security & Financial Freedom? - Education - Nairaland
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| What Is The Difference Between Financial Security & Financial Freedom? by Ekakamba: 9:42am On Nov 08, 2017 |
This is one of my favorite money questions because it seems that quite a few people are unsure of what the actual difference is between financial security and financial freedom. I have asked many of my acquaintances this very question and more often than not the response is "I'm not sure what the difference is." According to Marco Robinson, an award winning entreprenuer and best-selling author, only 1 out of every 100 people become financially free. This is my story of how I became financially free. The pursuit of 'Financial Security' Let's rewind the time machine back to 2009, there I was a broke college student-athelete staring reality in the face as I was approaching the end of my senior year. My childhood dream of someday playing in the NFL had evaporated due to injuries. My carefree lifestyle of living with roommates with very minimum monthly expenses, spending my days going to class, football practice, and parties was quickly coming to an end. Needless to say, I didn't have anything lined up for my post-college life. The only thing I was certain of at this point was that I needed to establish financial security in order to survive in the real world. So what is the actual meaning of financial security? Financial security is achieved when you have reached a level where you know exactly how much money is coming in and going out each month, where your income is reliable & arrives on time every 2-weeks, bills are paid, and you have a steady job to go to every week with little to no risk involved on your behalf. Sure, you have a boss you have to report to and you have to get their approval for vacation time. But, nonetheless you are a "glorified employee" with financial security. Now back to my story. I had to quickly come up with a game plan so I recalled back to when I was a little boy and that I had always wanted to become G.I. Joe at some point in my life, then wallah! Right then and there I figured what better way to achieve financial security than to proudly serve my country. Fast forward to a year later and there I am serving in the U.S Army while simultaneously achieving financial security due to now having reliable income arriving every 2-weeks, and bills paid with a steady job as a soldier. The pursuit of 'Financial Freedom' Fast forward 6 years later from the day I suited up in the Army uniform and I am now ready to transition into financial freedom. So what is financial freedom you ask? Well, financial freedom in many ways is the opposite of financial security. Financial freedom is achieved when your monthly income may fluctuate but your bills are still paid, your money cushion has ballooned to a point where you are no longer dependent on a steady job; no boss to report to, no permission required for vacation, and you are no longer a "glorified employee!" You are now your own boss, generating income from your carefully invested assets or some other means, truly living life on your own terms. Sure, you may choose to still work a steady job but the difference is that the steady job is no longer a necessity. Therefore, financial freedom carries the same meaning as financial independence. In order words, your livelihood and cash flow is no longer dependent on any single employer. I reached this pinnacle when I decided to leave my steady job in 2016. I have financially positioned myself through years of disciplined money management to a point where I no longer have to depend on a steady job. Now, I am financially free. Financial freedom enhances your power of choice. The pinnacle is that you can choose to work a steady job or not, and simply allow your assets or whatever you so choose to generate your cashflow. Either way, the choice you make will not make or break you when you have reached the level of financial freedom. Take charge of your money! Reference Marco Robinson; https://www./only-1-out-100-people-become-financially-free-marco-robinson
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| Re: What Is The Difference Between Financial Security & Financial Freedom? by Fxmanager(m): 10:01am On Nov 08, 2017 |
Financial security is the state you are while still working, while financial freedom is state you will be when you stop working, and how long you are going to survive without a job. |
| Re: What Is The Difference Between Financial Security & Financial Freedom? by boyejo123(m): 1:01pm On Nov 08, 2017 |
may be I should say that a salary earner(teacher) Is financially secured, while dangote is financially independent. I guess this is it's summary |
| Re: What Is The Difference Between Financial Security & Financial Freedom? by bartho77(m): 1:14pm On Nov 08, 2017 |
Financial security : It means you are rich( Salary earners of multinational firms, small and medium scale businessmen). Financial freedom : It means you are wealthy ( Entrepreneurs like dangote, trump, bezos and innovators like Zuckerberg, gates) |
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