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It isn’t unusual to make use of the phrases ‘monetary freedom’ and ‘monetary independence’ interchangeably. It’s a disservice to each. There is a vital distinction I’ve realised.
Monetary Freedom
is a frame of mind the place you determine to not let cash stand in the way in which of what selections you make. There’s a sure consciousness, an consciousness of what’s vital to you.
You go about decluttering and simplifying your life and constructing it with ‘what’s vital to you and your loved ones‘.
Sure, you continue to have that residence mortgage and youngsters going to highschool, however if you see a possibility that can provide you barely much less cash however extra happiness, extra time with household, you determine to go for it.
You don’t go about upgrading your way of life, past some extent, simply because you will have extra money. The larger automotive isn’t vital and the 2BHK is sufficient for the household.
Monetary Independence
however, is having sufficient cash to not get up one other day for locating extra of it. You possibly can determine to no matter you need, with out the cash fear behind your thoughts.
Go a world tour, work with social organisations, have lengthy lunches with associates or spend time to jot down your weblog/e-book. Your portfolio, your wealth is sufficient to present your each day bills or another necessities.
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Freedom is inside you, independence is exterior of you.
Fairly apparently, monetary freedom is extra vital than independence. In truth, freedom has to occur earlier than independence.
The liberty mindset is what permits you to attain your independence. It helps you get off the hedonic treadmill.
Wealth isn’t about having some huge cash, it’s about having a number of choices.
Chris Rock
Once I see it this manner, I imagine I’m financially free.
What about you?
Do share your ideas.
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References
- Wealth Clarifies by Rational Stroll
- A Video on the distinction by Massive Assume
- Purpose-based planning
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