Understanding Financial Freedom

Understanding Financial Freedom

You are 100% financially free if you can support yourself without having to actively do anything to earn an income for the rest of your life.

DEFINITIONS

Different people have a different understanding of what financial freedom really is and define financial freedom as follows:

* Having money in abundance and being able to buy any luxury imagined

* Being completely debt free (including house payments) and never receiving any bills

* Never needing to worry about money

* Freedom from hunger

* Income exceeds expenditure

* Being able to keep whatever income you earn without someone else taking it away from you

* Freedom to invest or spend money in any way you want to

* The right to keep and use what is rightfully yours without anyone having a valid claim

* Earning a decent salary

* Being able to easily cover all expenses and still have enough to enjoy good vacations while also being able to handle most emergency situations without putting a strain on the budget

* Having enough money to retire for the rest of your life

* Not having to work for a boss

* Not having to work at all and being able to pursue interests and hobbies

* Having an extra income in addition to present income to supplement financial status

* Not having to work for money anymore

* Being able to spend money freely without any restrictions

* Not under the control or power of another

* Having sufficient financial resources and assets to live the lifestyle of your choice

* Having enough financial resources to enjoy the time spent with your family

BE IN CONTROL

If we are to become financially free we are required to live within the principles of good financial practices. This will involve tithing, saving, spending wisely, investing, etc. There are so many people who desire to live in abundance, but not all are willing to abide by the spiritual principles involved.

In order to achieve financial freedom we must take control of our life rather than allow life to control us.

Either you will control life or life will control you.

Either you will control life or life will control you. Once we are able to take control of our lives we can then control our spiritual, social, relational, and financial destiny.

The difference between rich people and poor people is not intelligence or education, it is about money management. It simply means that rich people manage their money well and poor people do not. As with all areas of your life, financial freedom is a choice.

Living in financial freedom allows you to do bigger and better things. We are called to fulfill our divine destiny, and to achieve that, we will invariably need finances. Choose well.

SOURCES OF INCOME

The three primary ways that a Christian acquires money are:

1. Working

This means earning a salary or receiving monetary reward for work done. This could be your regular occupational job, part-time job, running your own business, cutting grass on weekends, ministry, etc.

There is no substitute for hard work. There is no easy money. To earn an income from whatever source takes an effort.

Proverbs 24:33-34 - A little sleep, a little slumber, a little folding of the hands to rest; So shall your poverty come like a prowler, and your need like an armed man.

2 Thessalonians 3:10 - For even when we were with you, we commanded you this: If anyone will not work, neither shall he eat.

2. Investments

Earning money from contracting out your labor either to someone else’s business or your own business is not an investment return.

Always use wisdom and remember to seek God's direction before committing your money to any investment opportunity. The greatest investment that you can have is an investment in Kingdom building including your local church.

Investing your money means investing in the stock market, a business, your home, the Kingdom of God, etc.

If your life is drifting by aimlessly, something is wrong.

3. Harvesting

A farmer who does not sow seed cannot expect to reap a harvest.

Harvesting is the process of receiving from the seeds that you have sown. This process is basically the manifestation of the blessing for being obedient to God. This manifestation occurs in many different forms. It could be a phenomenal growth in your business, a major promotion on your job, gifts, etc. If you have not been a giver then you cannot expect a harvest.

EQUITY

The simple meaning of equity is “value”. In reality, when you apply time to any investment, the result should be a future value which is greater than the initial investment. This is also known as equity. For example, if you purchased a property 40 years ago, the value would in all likelihood have increased significantly, adding value to your financial portfolio.