Down To Earth Personal Development

When our parents were young, living beyond their means would be equivalent to taking a vacation they couldnít afford.  Today, it is quite different.  Taking long trips abroad, buying cars and jewelry would be considered normal for many people.

We all want what we can’t have.  Sure, some of us would love to retire and not have to worry about paying off the mortgage or similarly, move to another state and begin a new life free of debt.

When we play the weekly lottery, we are hoping against hope that we’ll win for no other reason than we would love to buy a new home for mom and dad, send the kids to college, pay off the car loan, or travel to anywhere.

The reality is we are much more likely to be struck by lightening than win the lottery.  Oddly enough, it may take a bolt of lightening to bring us back to reality.  Fantasy Island was just a show, but for some, it is living a life that is in complete contradiction to the balance sheet in oneís life.

There are so many people in debt today and the numbers are growing.  When the sub-prime mortgage debacle occurred, most of the individuals affected were the unfortunate victims of unscrupulous characters who sought to make a quick buck.  For others, buying a home that was far beyond their ability to pay put them in dire straits.

People who live beyond their means have no conception of money.  An example would be someone who was brought up in a poor household.  He probably swore that some day anything he desired would be his.  Conversely, another person who grew up in a similar situation may be a saver - prepared for any eventuality, yet living comfortably and modestly.

If our parents couldn’t afford to buy something, there was no discussion or compromise, it just wasn’t purchased.  Today, with credit card applications offering zero interest, with incentives from mortgage companies and banks, with infomercials claiming, “You, too, can become rich and live in luxury for the rest of your life.”, it’s no wonder we have become a nation in debt.

Every day, there is one ad or another in a local newspaper or online offering a quick and easy way to earn thousands of dollars.  Yes, we all want what we can’t have.  If you think about it psychologically, it is the quest that is enticing:  the journey to fabulous fortunes that is luring individuals to stray from what they know is the truth.

Living beyond one’s means is a problem for many, but the bigger problem lies at the end of the quest when the bills start rolling in and there isn’t enough money in the budget to pay the debts.

Tags: Personal Finance

In the 21st century the concepts of time and money are being redefined. ”Financial Freedom”, is one such term that has gained much importance in the changing financial scenario.

”Financial Freedom” means the freedom from continuous financial responsibilities through a planned management and allocation of assets. It frees a person from back-breaking work by giving him a steady source of income for life.

One must not think that a financially free person is also debt free. However, his prudent asset management ensures that his debts do not become a burden but only a part of his over-all expenses. In this way, his debts do not hinder his long term financial goals.

Financial freedom cannot be equated with being rich. One must not forget that surplus wealth requires constant supervision. In the long run, a rich man’s obligations do not make him ”financially free” in the true sense.

Thus, financial freedom maybe defined as a lifestyle that blends expenses and income according to the individual preference. This makes ”financial freedom” a more possible and convenient state of being.

Financial Freedom is Time Freedom

”Time is money”, is the general belief in the professional world. This attitude does not allow space for leisure time. However, financial freedom has changed this concept of work by enabling a person to enjoy leisure without hampering his steady income in any manner. The entire concept of ”financial freedom” is based on assets and investments that are compounded over time to generate money. It takes care of the regular expenses and leaves a person with both time and money in his hands. A financially independent person is free from the clutches of time-for-money routine.

Achieving Financial Freedom

To understand ”financial freedom” one must come out of the traditional concepts regarding income and expenses.

We have been taught that timely work generates money. ”Financial freedom” opposes this concept of time-for-money swap and lets the money work for the individual instead. However, in spite of this advantage many professionals find it difficult to work without a fixed routine.

Thus, to achieve financial freedom one needs to change their old mindsets and develop a new attitude towards earning money. One must realize that money is simply the means to achieve ends.

One must also remember that a person cannot be judged by the money he possesses. Unless these misconceptions are cleared the entire purpose of financial freedom is defeated since satisfaction is the keyword to financial freedom.

Similarly, one must also get rid of the negative attitude towards earning money. While excess demand for wealth hampers one’s healthy relationship with finances, a healthy perception of money is necessary to maintain an over-all balance. Remember that one earns money to achieve ends and therefore, it is healthy and normal to earn money as long as one feels the ethical need to do so.

In the end, one may say that financial freedom is the state of mind which works towards development through a process of self liberation.

Tags: Financial Freedom, Personal Finance