Financial freedom is attained when you can settle your daily financial needs without any stress. The journey to financial freedom is accomplished when you become financially independent and in full control of your personal finance.
Many people have attained this goal through a minimalism saving lifestyle concept, where you save as much as 80% of your income.
According to Natalie Bacon (@NatalieRBacon) a blogger who runs an online business full time: “A minimalist budget will give you clarity with your money by decluttering your finances and prioritizing your financial goals.”
So, to achieve financial freedom and get happy in 2019, you need to gather just enough money by focusing on the following:
People are happy even without money, but happiest with cash. A published article on the analysis of Nature of Human Behavior showed that the emotional well-being of most people is optimally fine when earning at least $75,0000 over $60,000 annually. At this level of earning, these people have daily positive emotions and happiness.
However, researchers and financial experts point out that earning $95,000 annually is a higher figure but the most ideal for life evaluation. This includes taking into account peer comparisons, metrics on macro levels and long-term goals.
According to Purdue University financial researchers and experts, the emotional well-being and the level of life satisfaction starts declining beyond the optimal mark of $95,000. This means too much wealth, beyond the required level for the purchasing power and the daily comfort, results in engaging in social comparisons that are unhealthy.
Philosophers have argued about this for millennia, yet everyone has a bearing that money can lift someone to greater heights of life.
A person earning only $8,000 a year will struggle to afford food and clothing, and in some cases, they have no shelter. They find it hard to live off other people and are stressed to live as scavengers.
But just as Bellamy Shoffner (@hellobellamy), a writer and the founder of a digital magazine committed to exploring the intersection of parenthood and social-justice – Hold the Line mentioned: “Financial security is expected to be the natural result of hard work and persistent dedication to your chosen field. We feel confident that if we plan well and follow (most of) the rules we’ll have no problem providing for our children, giving them all of what they need and some of what they want.”
On the other hand, a person earning $80,000 lives a worry-free life. They live a luxurious life. They can afford a car, travel for nice dinners, invest in savings among other things. But are they happy?
Money is a crucial factor to how we perceive ourselves, thus affecting our self-esteem feelings, security status, and control.
Making much money in the 21st century is easy, and we came to a point when:
However, there are important limits to consider when making money in pursuit of happiness. Money has an optimal point that can lead to happiness and beyond which happiness is short-lived.
Ben Casnocha (@bencasnocha), an entrepreneur, investor and blogger at Casnocha.Com, and a best-selling author based in Silicon Valley noted that when it comes to pursuing happiness or meaning in a career, “Most entrepreneurs I know who are striving for big world-changing outcomes are not actually happy most days.”
It seems natural to assume that rich people are happier than others. Well, money is just a portion of the psychological wealth. The truth is that if you can afford food, shelter, and clothing, then an increase in disposable income will have an insignificant influence on the sense of your well-being.
Jason Butler (@jbthewealthman), a personal finance expert, member of the personal finance Society and Chartered Institute for Securities & Investment, advises that “if you have good health, do work that you enjoy and have a handful of close personal relationships, the chances are you will be thrilled indeed and live to a ripe old age.”
Therefore a life richly and happily lived is rich in:
Ben Casnocha (@bencasnocha), an entrepreneur, investor and blogger at Casnocha.Com, and a best-selling author based in Silicon Valley.
Jason Butler (@jbthewealthman), a personal finance expert, member of the personal finance Society and Chartered Institute for Securities & Investment.
John has been a freelance writer for the past 3 years. He worked for 4 years as a Mortgage Consultant and a Financial Advisor. He also worked for 2 years as a Loan Manager for a medium sized company that handled bad credit loans, car loans and personal loans. We are excited to have John in our team!
John writes about Finance, Philosophy, Money Saving Tips and much more. He is a proud Member of Financial Advisers Australia (AFA) and has Cert IV in Financial Services.