What Is Real Financial Freedom?
Two hundred fifty years ago this week, a small group of people signed their names to a document that meant risking their lives. Freedom was their rallying cry. Freedom from unfair taxes, a distant government, and a king’s arbitrary will.
We still talk about freedom every July. But when the conversation turns to financial freedom, what are we really looking for? Financial freedom, from what?
Is it freedom from worry? This is a common theme from families I talk to. We all want to reach a point with our finances where we don’t have to fear the next big threat: job loss, economic downturn, market correction.
However, studies show that financial freedom doesn’t work that way. The more money one has, the more worried they tend to get. One study of individuals with a net worth over $50 million (the top 0.1% of Americans) found that only 1 in 5 reported feeling “extremely financially secure.” One in 10 actually said they felt “somewhat insecure”. If money bought peace, this group would be where we’d find it in full supply.
My experience bears that out. The clients with the most money are not usually the most content.
Maybe instead of freedom from something, financial freedom is looking for something. The freedom to pursue the American Dream: beautiful house, reliable car, all the travel and leisure our lives can fit. Financially, enough to let us engage in “the pursuit of happiness.”
What has that pursuit actually delivered? Over the last 65 years, real income per person in the U.S. has more than quadrupled. The number of consumer products available to us has multiplied manyfold. And in that same span, neither life satisfaction nor financial satisfaction has moved up at all. We are not substantially happier than we were as a poorer nation. The same holds true across other prosperous nations. We’ve been running a very expensive experiment, and the data says more stuff doesn’t buy more contentment.
Here’s the uncomfortable conclusion: no amount of money will make us financially free. Not because money is bad, but because it was never built to carry that weight.
We think real financial freedom is something narrower and more attainable than either the Dream or the worry-free fantasy. It’s the freedom to make decisions — about your family, your generosity, your time — without money being the loudest voice in the room. Not freedom from all financial concerns. Freedom from financial concerns ruling the decision.
That’s a freedom you can actually build toward. It doesn’t require $50 million. It requires clarity about what you actually value, and a plan that reflects it instead of a plan that chases what everyone else is chasing.
Two hundred fifty years ago, freedom meant self-governance instead of a king’s will. The same idea still applies to your money. The question isn’t how much you have. It’s whether your money is governed by you (your values, your convictions, your peace) or by fear and comparison.
That’s worth signing your name to.
If you’d like to talk to a financial planner about clarifying your own values and goals, reach out to schedule a meeting with a Sound Stewardship Wealth Advisor today.
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