What Really Is FINANCIAL FREEDOM, FINANCIAL SECURITY And FINANCIAL INDEPENDENCE

In this video I share the difference between financial independence, financial security and financial freedom and how much money you need to have to be considered financially free, financially secure and financially independent.

Now as i’m sure you know one of the primary objectives of this channel is to provide information that will aid in our path to achieving financial freedom and it dawned on me as i was talking about financial freedom in another video and one of you my rock stars sent me a clip from someone else who talked about what they feel or believe financial freedom is and i

Realize that many people have no idea what it means to be financially free and in order for us to achieve it we first need to understand it i’ve seen a lot of change through a lot of pain some things are not the same as they were a year ago welcome back to my channel my rockstars it’s great to have you back and if you are visiting our channel for the first time

We take pleasure in inviting you to become a part of this amazing family over here that we’re calling our rock stars and help you on your path to achieving your big goals and this is not just about me sharing but also me learning so please don’t hesitate to share your thoughts in the comments i read everyone and i respond to everyone so thanks again for all your

Support and let’s jump right into the video but before we do that i’m promoting brand jamaica today and i am jamaican to the core and a lover of jamaica all the time not just sometimes and i look at it this way i have family members that may be dishonest they may be liars they may be bad mind as a lot of people like to say or they may be haters as i often hear

People say today but i accept them for who they are and i try to love them as much as i can nobody is perfect and no country is perfect countries are going to have economical issues some will have political issues and many have criminal related issues but do we stop loving them or do we disassociate ourselves from them i know some of you disassociate yourself

From your relatives but that’s not who i am and in the same way i’m gonna still take my relative and work with them as much as i can i’m gonna take jamaica for what it is and do my best to make it better i believe that this is the opportune time for us to represent brand jamaica because what’s been communicated outside it may be real or not it’s really negative

So we need to showcase that there’s a lot of good things happening here there’s a lot of brilliant people there’s a lot of talented people there’s a lot of people who would live nowhere else but jamaica like myself and who are committed to doing everything in their power to making this beautiful island an even more beautiful place to live so i know i just went

Over left field but i’m gonna rein it back in and talk about why we’re here today what i’m gonna do is i’m gonna define and elaborate on financial security financial independence and financial freedom the reason why i need to talk about financial security and financial independence is because i believe they are on the path to achieving financial freedom so it’s

Like milestones along the way and in order for you to capitalize on the end result which is financial freedom you need to master and achieve those milestones now let’s start with financial security now if you are employed and you have a nine-to-five job and you were to lose that job or if you were to quit that job today and you still had enough income coming

In through other sources of income to cover all your food your shelter and your clothing expenses which really are your basic living expenses you can consider yourself financially secure now let me caution you that having an emergency fund does not mean that you are financially secure because if that emergency fund were to run out whether it’s a year after you

Quit or you get fired or five years later it means that you would be in a situation where you cannot sustain yourself and as such you will need to either get a full-time job to do so or create another stream of income now financial security is the first milestone on the highway to achieving financial freedom and even retiring early financial security is actually a

Confidence booster you know why financial security is critical because it gives you the confidence knowing that even if you were to lose your job today you would still be covered for all your essential expenses without external help because you have sources of income that can compensate you accordingly now the second pillar or milestone on your path to achieving

Financial freedom is financial independence now this is how i define financial independence this is a situation where you have enough passive income which means that you are making money without getting out of bed to maintain your current lifestyle now this lifestyle that i’m describing it goes way beyond your beer or your essential needs if you think about having

A coffee every day without thinking about money or worrying about where the money is coming from having things like a gym membership playing tennis on the weekend and paying for a coach or someone to train you going on a vacation a few times per year this and other things like that are a clear indication that you’re living a lifestyle that could be considered as

Being financially independent when you’re financially independent it means that you can retire early and not worry about how you’re gonna sustain your lifestyle for the rest of your life in order to be financially independent however you will need multiple streams of income because if you have one or two streams and one gets compromised you may end up in a situation

Where you either have to go back and start from scratch in identifying new streams of income or if you had retired you need to go back and get a nine-to-five job to sustain your livelihood when you’re financially independent you continue to earn from your different income streams regardless of what you choose to do each day and when you choose to do it or how you

Choose to do it or where you choose to do it from now i often say that this is where i am at in my life a lot of people will say that i’m financially free based on the little that they know but when i describe what financial freedom looks like you’ll understand exactly why i believe i’m more financially independent than financially free now a lot of people in the

Course of their life they stop at financial independence because you can actually live comfortably being financially independent not having to worry about money and your income streams are coming in and sustaining your lifestyle and even giving you a chance to splurge on your habits but why not take it to another level and aspire to be financially free now

For me financial freedom means that my passive sources of income that’s coming in from multiple streams is not just enough to cover my current lifestyle but the lifestyle of my dreams now let me give you a synopsis of the lifestyle of my dreams which is why i’m decked out in my jamaican attire today i want to be able to go to every single sporting event with my

Family that jamaica is having whether it’s track and field it’s the reggae girls the reggae boys i want to be there front and center celebrating i want to have front seats that i can literally reach across and touch them if they come to the area that we’re seated in i want to get there first class or at least business class i want to stay in five star or five

Diamond resorts i want to do additional tours when i get there and i don’t want to miss an event to support jamaica i also want to be able to initiate two huge charitable projects one is related to mental health and the homeless and being able to create a recreation center where anybody who can’t afford to live somewhere or to get care for mental health to aid in

Their recovery they can access this center and everything is provided to include top class doctors the right medication as opposed to the cheap ones that sometimes don’t work and ensuring that we can rehabilitate and those who are homeless we can create income generating opportunities for them and put them back into society as successful human beings i also want

To ensure that a few generations are taken care of so that’s it for me what is it for you whatever your dream life looks like financial freedom is the way you enable it so in summary i would say that financial freedom means that you have enough passive income again you can be sleeping and making this money but you have enough passive income to not just do the

Things that you’re doing today to live a great life but also to do the things that you have dreamt about doing to live a phenomenal life and you do so without ever having to worry about money now on your path to achieving financial freedom i would suggest that you set up milestones so you first start with financial security then you move to financial independence

And then eventually you’ll get to financial freedom now during this journey we’re all gonna start at different places but the ultimate goal is to achieve these milestones in a reasonable time along this path many people are living paycheck to paycheck today and they’re not realizing that they could actually achieve financial independence and retire early and later

Move towards financial freedom and achieve the life of their dreams but you know what my rock stars you are here because you’re different you want more out of this life for yourself you are here because you know that there is something better out there for you and you have the power in you to initiate and create it and to do so the first step is to determine what

Is that number or that amount that you need to be earning from either passive income sources or your full-time job to be considered financially secure financially independent or financially free to determine what that amount is for financial security i want you to start with your current expenses take a look at your bills take a look at things like your food your

Shelter your clothing and your basic necessities and you can do so in a budget template where you can track it what is the average amount that you’re spending on these items per month that’s the number or the dollar amount you need every single month coming in to be considered financially secure initially now you need to figure out how to get that money coming in

Whether you have a job or not and ensure that you have enough to sustain your lifestyle if situations were to change so when you determine what the average amount that you are spending every month to live a decent life that’s your financial security number so from there you need to figure out how are you gonna make sure that you get this amount coming in whether

It’s from a full-time job or another income stream you need to figure out how to get this amount every single month to offset your basic needs and when you’re doing that and you’re doing it consistently you can consider yourself financially secure because that’s the magic number now to determine what the number is for financial independence you need to examine

All your current finances and your lifestyle you then need to figure out exactly what the dollar amount is that will cover your basic necessities then you need to figure out how much money you need to cover those nice to haves like the dining out and the vacation and so on and you need to add those two numbers together that’s your financial independence number

Whenever you get to the state of financial independence you are able to quit your nine to five job because you cannot only sustain your lifestyle but enjoy the other luxuries and niceties that you want without having to work because your other income streams are covering for it adequately now let’s talk about the financial freedom number once you have your financial

Independence number the next thing you do is to think about all the amazing things that you want out of this life and this is where a bucket list comes into play you need to list them out you need to figure out what they’re gonna cost because a lot of people actually overestimate this number which is why they think financial freedom is so far-fetched when you list

It on a sheet of paper and put a value beside it it brings things into perspective and no financial freedom is now achievable or more achievable than it was before now by taking your financial independent number and adding this number you have your financial freedom number your financial freedom number is the passive income that you need to generate every month

In order to live not just your current lifestyle but the ideal lifestyle and this is where you can do all the amazing things that you have ever wanted to do you can give back through charity and do so at the level that you have always wanted and you live the life that you have always dreamt about now once you have established your financial security number your

Financial independence number and your financial free number or financially free number you’ll have very clear milestones and goals for you to achieve financial freedom so now the next step is to execute accordingly that’s it my youtube family i hope this video will enlighten you as it pertains to what financial freedom really is and by the way while a lot of this

Is my opinion i did do some research to confirm that it’s the general perception of financial independence financial security and financial freedom that’s out there so what i would say my rock stars is don’t worry too much about how people define financial freedom for them focus on what it means for you and ensure that you’re putting things in place to achieve

True financial freedom until next time walk good you

Transcribed from video
What Really Is FINANCIAL FREEDOM, FINANCIAL SECURITY And FINANCIAL INDEPENDENCE By Odetta Rockhead-Kerr