FINANCIAL FREEDOM

Financial Freedom
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Financial freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses. Contrary to popular belief, it does not require being free of debt, as a debt payment is just another expense. Typically, "Financial Freedom" can be attained in one of two ways (or a combination of the two): 1. Enough passive investment income to cover one's expenses. 2. A large enough "nest egg" that can be liquidated over time to cover one's expenses.

Simply said, financial freedom is one point in life when you do not work for money anymore.

Loosely defined, "financial freedom" is also a marketing catch phrase commonly used by financial planners and popular financial advisors such as Suze Orman, author of The Nine Steps to Financial Freedom (ISBN 0-609-80186-4).

The downside is, the phrase is also often employed in attempts at advance fee fraud. E-mail and snail-mail solicitaions often promise "financial freedom" in return for a couple of hours a week work, or in return for sharing one's bank account information with the widow of the director of Nigeria's central bank, etc.