Financial Independence VS Financial Freedom

Financial Independence is a wonderful thing. I frequently sing its praises, and I am proud to have achieved the milestone for myself and my family. 

Having attained FI completes half of the FIRE acronym, and I’ve got plans for the RE part soon enough.

I haven’t pulled that trigger yet, though, have I? Why not? After all, by definition, I’ve got Enough. I could have given notice a year ago and maintained our lifestyle indefinitely.

But the truth is I’ve been straddling the fence, and each time my toes graze the grass on the other side, I retreat. I’m still working, but I’m not working for nothing. I’m working for something called Financial Freedom.

Financial Independence VS Financial Freedom

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Independence in this sense means you can live independently of earned income. Maintaining your current lifestyle, likely a relatively frugal one that allowed you to become financially independent, you can reasonably expect to never run out of money.

What is Financial Freedom?

When you have Financial Freedom, you can feel free to do some things you might have never considered when you were on that laser path to FI. 

Benefits of Financial Freedom

For example, you could, without regret: 1. Order your favorite menu item, rather than the best value 2. Stay next to the beach, instead of four blocks up the street

Freedom to spend doesn’t mean you should or will spend all those additional dollars. It means you’ve got enough cash to do so without putting your financial future at risk.

A Word of Caution

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