Lepton · Enric Ichart
Financial freedom: what it really means (and what it does not)
6 min read ·
“Financial freedom” has become a fashionable phrase that everyone uses in their own way. To me it has nothing to do with getting rich, but with something much simpler: being able to decide how to use your time without money getting in the way. In this article I explain it calmly, from the point of view of someone who has worked for many years close to business management.
What financial freedom means
It is the situation in which your income and your assets cover the way you live without depending entirely on your working hours. It is not a magic number or a goal that suits everyone: each person has a different level of expenses, responsibilities and dreams.
So, rather than asking “how much do I need?”, I suggest starting with another question: “what do I want to be able to decide?”.
Active income and other sources of income
Active income depends directly on your working hours: a salary, an invoice for services. If you stop working, it stops. Other sources of income may depend less on your presence, but almost always require first an investment of time, money or learning, and they are not guaranteed.
That is why working more hours is not the same as building something over time. Each path has its risks and there are no shortcuts: it pays to know them well before choosing.
Realistic first steps
Before thinking about other sources of income, put the basics in order:
- Know your real expenses and how much you save each month.
- Control debts and prioritise the most expensive ones.
- Build a cushion for the unexpected.
- Learn basic financial education: it is the investment that pays best.
- If a complementary activity interests you, assess it with the ten honest questions in our article on side activities and with a tax adviser.
What I will not promise you
I will not tell you there is a quick formula, or that a particular activity brings financial freedom. What I do believe is that, with information, a realistic plan and consistency, many people can gain peace of mind and more options. How much, and when, depends on each person.
Frequently asked questions
What is financial freedom?
It is being able to cover the way you live without depending entirely on your working hours, and having room to decide how to use your time. Each person defines it according to their expenses and dreams.
How much money does it take?
There is no figure that fits everyone. It depends on your expenses, your responsibilities and the life you want to lead.
Is it the same as being rich?
No. It has more to do with peace of mind and having options than with accumulating money.
Can a complementary activity help?
For some people it can be a route, but there are no guarantees. Assess it realistically and get legal and tax advice from a professional.
Indicative information. It is not medical, legal or tax advice, and it does not promise income or results. Food supplements do not replace a varied and balanced diet. FitLine is a registered trademark of PM-International AG; Enric Ichart is an independent distributor.