Financial Literacy – Part 1: What is Financial Freedom?

A pile of money.

The article also names a list of many high-ranking CCP officials and their relatives in the United States with assets that are now listed in the U.S. as potential seizure or forfeiture items. (Image: FilipFilipovic via Pixabay)

Do you know what it means to have financial freedom? What’s your first reaction when an expected turn of events causes you to foot a significant bill, like for example, a medical expense? Or, more simply, how’d you feel if your kid broke the laptop? Do you handle it with equanimity or dread? Well, if you’re financially stable, then these are all just “stuff that happens” in life. If you are not, then these are usually disasters wrecking your livelihood. If you belong in the second category, then read on, because we have a series of articles on how to achieve financial freedom.

Let’s start by defining it. Financial freedom is the ability to be in control of your finances, in contrast to making life decisions based on them. You are “free” to go on a vacation, spend time with family and friends, do what you love, and go for a night out without worrying about the bill. If you are not financially free, but constrained, you will think twice about all the above-mentioned activities, and most probably, will not proceed because of a soon-to-be empty wallet.

Subscribe to our Newsletter!

Receive selected content straight into your inbox.

What is financial freedom it all about?

Being rich is different from being financially free because being rich means different things to different people. Some people would consider owning an expensive mansion or high-end vehicle to be the standard for “rich,” while, for others, it would be the ability to travel and help those in need. A businessman’s concept of rich would be different from someone living paycheck-to-paycheck. It differs based on circumstances and situations. But financial freedom is the common baseline to do what we love to do (up to a certain limit) without thinking too much about money. This is where we all need to start.

Self-limiting beliefs will not get you far on the road to financial freedom.
Self-limiting beliefs will not get you far on the road to financial freedom. (Image: via Pixabay)

There are many ways to achieve financial independence. We will cover, in-depth, the strategies you can adopt in your life to achieve this in upcoming articles. Some of the tactics include clearing off debt, investments, negotiations, learning skills, financial literacy, financial instruments, tax planning, living below your means, and more. All this can be achieved with the knowledge and the will to change.

Before getting into the nitty-gritty, let’s delve a bit more into the obstacles that you are usually faced with when undertaking such a venture.

Misguided notions about financial freedom

When you are born into a certain family, taught in a certain school, are surrounded by certain people, you will have certain notions on many things in life, including wealth, accumulation, and sustenance. Wrong notions, especially those formed early on in life, tend to stick around and prevent you from moving beyond a level of financial freedom and success. Yes, you are one of the biggest obstacles in your life to becoming financially sound. Recognize the notions when they come about, and work toward removing them, for your sake.

Some examples:

  • “Financial success comes only from getting a good college education.”
  • “Credit cards and quick high-interest loans give me the ultimate financial mobility.”
  • “How can I, coming from xxx family, living in xxx, earning xxx ever be wealthy?”
  • “Invest later, party now.”
  • “Keeping budgets is for losers.”
  • “It’s too late to start anything.”
  • “I’m not smart (or skilled) enough.”
  • “Bought the latest model because the neighbor’s got one.”

Then, there is a lack of education. But keep up with this series, and you should be covered, at least on a foundational level. We can’t do much about the notions, bad attitudes regarding wealth building, and a lack of action. But we can teach you. So if you’re ready to figure out where and how to start, stay tuned.

Critical knowledge

No one can take away your education from you.
No one can take your education away from you. (Image: via Pixabay)

Unfortunately, basic financial literacy is not taught in schools. It’s a conspiracy, if you ask me, as it is such an important aspect of life. Families that teach finance at home result in the household members not getting into debt traps and maintaining a stable financial standing throughout their lives. When you become financially educated, it is up to you to spread this knowledge among family, friends, and others within your circle.

Follow us on TwitterFacebook, or Pinterest

Recommended Stories

Artificial intelligence deepfakes.

AI Scams in China: The New Face of Fraud

On May 22, Chinese state media’s China Fund Report revealed that AI fraud is becoming ...

A mother with her daughter and granddaughter.

The Unexpected Power of a Mother’s Love: A Tale of Simplicity and Survival

There was once a wealthy woman whose net worth was well over a billion dollars. ...

Chinese banker Kang Xinru from the 1920s.

From Tycoon to Pauper: The Impact of Chinese Communist Policies on Banker Kang Xinru — Part 1

After a massive crackdown on private enterprises, and the economy tumbling to its lowest point in ...

Bobi and his Guinness World Record.

The World’s Oldest Dog: Bobi Celebrates His 31st Birthday

A Portuguese dog named Bobi has broken an 81-year record to become the new world’s ...

Illustration of Chinese scholar Qian Mu, wearing traditional clothing and glasses.

Qian Mu: Guardian of Chinese Tradition in the Shadow of Communism (Part 1)

In 1949, as the Communist Party was poised to take control of mainland China, with ...

Old photo of Chinese historian, Qian Mu, dressed in scholarly robes.

Qian Mu: Guardian of Chinese Tradition in the Shadow of Communism (Part 2)

In 1966, when Chairman Mao Zedong initiated the Cultural Revolution, China’s traditional culture faced an ...

Illustration of a man resting on a sofa.

Unlocking the Benefits of Power Naps for Productivity and Well-Being

The relentless pace of modern life often leaves us feeling drained. In the midst of ...

Colored clouds in the sky.

How a Hug Can Make Miracles Happen

Do miracles exist? Our world is governed by logic and science; extraordinary events often spark ...

A young Chinese man napping on a train.

What Is the Ubiquitous Chinese Nap Culture?

The ubiquitous Chinese nap culture is something that most foreigners usually do not follow. The ...

Send this to a friend