Because of the insatiability of human desires, the topic of financial freedom appears to be controversial.

I like how one writer defines Financial Freedom as “the ability to separate your physical presence from your income in such a way that your presence is no longer a disadvantage, whether you are present or not and regardless of where you are located.”

If you can confidently state that your investments, cash on hand, and savings have grown to the point where you can provide for yourself and your family’s lifestyle while still having enough left over to see you through your retirement phase without having to worry about working to earn a monthly or yearly salary, you have achieved the status of the financially free.

Financial freedom is a state attained when you no longer work for money, but rather your money works for you while you pursue your dream career.

Unfortunately, only a few can boast of achieving financial freedom, which is not unrelated to issues ranging from an increase in debt, a change in lifestyle, emergencies, some relating to finance and other health-related issues, to other natural circumstances such as the current pandemic, earthquakes, tsunamis, and so on.

There are some indicators that indicate whether or not you will achieve financial independence, and these indicators should not be overlooked.


One factor is your upbringing, which refers to the experiences you had as a child. Do you come from a wealthy or a poor family? Some people believe that people from poor families make better financial decisions because of their childhood experiences, while others believe that people from wealthy families make the best financial decisions because wealth is not new to them. Anyone, regardless of background, can achieve financial independence; the determining factor is each individual’s mindset. Someone from a low-income family may decide to give his children the childhood he never had, spending more than is necessary at the expense of saving and investing. Another person from a wealthy family may decide that his children should have the same kind of childhood he had, even if he cannot afford it. Both scenarios depict a negative mindset, because such decisions will almost certainly result in financial disaster, and the blame is then placed on their childhood experiences.


Aside from lessons from your past, the simplest way to achieve financial independence is to have a role model, someone you can study to learn about their knowledge, wisdom, and actions. Someone who has achieved financial independence should serve as a role model. There are role models everywhere, from your home to your workplace, and even online; you just need to be willing and patient to learn.


Nothing good comes easily; it takes serious willpower to delay gratification and refuse to follow the crowd. Learning from a role model is not enough; the real test is the determination to carry out your action. You must be disciplined enough to go through the process regardless of how difficult it may be. It is impossible to achieve financial freedom without determination and discipline.


Everyone would like to be financially free at some point in their lives, especially in the evenings when they are unable to do as much work as they once did, hence the need to plan for financial independence. Some people achieve this feat sooner than others, while others do not. The key is to get started as soon as possible.

To be among the few who eventually achieve the status of financially free, the following factors must be considered:


      Adjust your lifestyle to live below what you earn if you are a salary earner, or live below your income if you are an entrepreneur. Spend only on things that are extremely important.

      Health is wealth; you must have a healthy body in order to work properly and avoid spending money on sickness; therefore, you must take good care of your health, eat properly, and exercise in order to stay fit and healthy.

      Form a savings habit and make it automatic. You can do this by giving your bank a standing instruction to hold a portion of your salary once paid, or by having your employer assist you by depositing a portion of your salary into a different account on your behalf. You can also put money aside in a retirement account.

      Create a monthly budget for your spending and do everything you can to stick to it.

      Do everything possible to avoid debt, and if debt must be paid back, make sure it is paid on time. Begin by repaying debts that have accumulated interest.

      Look for viable investments, no matter how small; it is always better to start small and build up gradually.

      Make as many investments as possible; this generates a variety of income streams.

      Invests in business stock, government benefits, and other income streams that allow you to exchange your time for money and earn monthly income, and/or qualify you for social security in old age.

      Reinvest and grow your investments with the proceeds from your investments.

      Carry a regular review of your income and expenses.

      Research the financial market by listening to financial news and events, as this information will keep you up to date and protect you from fraudulent investments.

      Seek the advice of financial experts.


According to Wikipedia, some sources of income to achieve financial freedom include:


      Bank fixed deposits and monthly income schemes

      Business ownership (if the business does not require active operation)

      Dividends from stocks, bonds, and income trusts

      Interest earned from deposit accounts, money market accounts, or loans

      Life annuity

      Notes, including stocks and bonds

      Oil leases

      Patent licensing


      Rental property

      Royalty from creative works, e.g. photographs, books, patents, music, etc.

      Trust deed (real estate)


Financial freedom is all about planning for a better tomorrow for yourself and your family so that you can work in the morning and rest in the evenings of your life, so the earlier you start planning, the sooner you will be able to achieve your set goal.


“Financial Freedom has a cost and If you want to achieve this, are you willing to pay the price?”? David Angway






Author : Amiakhor Ejaeta
Degree :
Major : Accounting
Country : Nigeria
Language : English

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