Is Freedom a Simple Concept?
Once can find a succinct definition of freedom on Wikipedia, as the ability to act and speak at will without hindrance or restrain, depicting merely a pinnacle of the topic. But is it all? In the world of reading only headers, how one can appreciate the depth of this noble virtue, which is the essence of our human existence.
Even though at surface seems to be such a simple concept, I do not believe we will be able to exhaust this topic even in a series of articles, to which this one is just the beginning.
In this article, we will embark onto understanding the significance of freedom in personal finances. We will start from exploring the true essence of freedom to tracing its evolution across time, to eventually gather an enriched perspective on what financial freedom entails today.
Freedom as Autonomy: Philosophical Perspectives Through the Ages
Freedom, in its purest form, allows one to exercise their free will and make independent choices without constraints. Philosophers throughout history have pondered the nature of freedom and what it truly means to be free.
Moreover, at its core, freedom is about having autonomy over one’s life and decisions, allowing one to shape their life and pursue their aspirations. It means being able to think and act according to one’s values and conscience, rather than external forces.
Philosophers, such as Plato, debated if freedom lies in being able to participate in civic duties and self-governance, or having power over one’s self through mastery of thoughts and emotions. He believed some limitation of freedom was necessary for social cohesion.
Other philosophers took a more individualistic approach. Stoic philosophers like Seneca asserted that genuine freedom stems from self-mastery, not power over others. Controlling one’s mindset, emotions and reactions was seen as a prerequisite key to autonomy.
This perspective has gained traction among modern entrepreneurs seeking personal growth, for those very nobel qualities rooted in personal liberation.
Beyond that consideration, Enlightenment thinkers expanded on these ideas, deeming certain freedoms inalienable natural rights. John Locke was influential in arguing that all individuals should have freedom of belief, expression as well as rights to life, liberty and property – ideals foundational to capitalism. I personally have more affinity for these views.
Debates also considered the level of freedom possible within social, political, and legal structures. Could true self-determination co-exist with laws and norms? Does social welfare diminish autonomy?
These ongoing discussions show philosophers have long probed the depths of what constitutes and enables meaningful freedom, for oneself and within social contracts. How do our own perspectives shape where we feel freedom starts and ends?
The Meaning of Freedom: Tracing the Evolution of Freedom Across Eras
Freedom from Ancient Times to Middle Ages
While freedom is a core ideal in many societies today, its definition and interpretation has varied significantly across eras. In ancient times, freedom often revolved around independence from physical constraints – the ability to move and act without being imprisoned or chained. Slaves famously desired for this basic level of their autonomy at the time.
While ancient Roman society had advanced ideas of freedom and developed an extensive system of rights and laws, the Middle Ages saw a regression of these liberties. In medieval times focus shifted to the importance of religion and the institution of the Catholic Church. Serfs freedoms got restricted or redirected to spiritual freedom through salvation that only Catholic Church could facilitate under their doctrine.
The first cracks in this feudal order appeared with the creation of the Magna Carta, which promised rights to commoners by exercising the God-given authority of the king. This landmark document established the idea that common people were also sovereign and equal, despite the totalitarian nature of the Medieval social hierarchy.
Freedom in the Renaissance and Enlightenment
Starting with the Reformation, which further removed power from the church, another stage of commoners’ liberation emerged – the Renaissance. Only then again, humanism fanned flames of knowledge and individualism. Freedom flourished as a canvas for human potential, not just the birthright of the few. The Enlightenment saw liberty’s fire ignite revolution, toppling tyrants to forge republics from the ashes.
Freedom in Modern History
However, as civilizations developed, so too did understandings of freedom. By the late eighteenth century, Enlightenment philosophers began elevating freedom to also mean independence from tyrannical rule. This new conception of liberty from oppression fueled revolutions and became a rallying cry for marginalized groups. No longer was freedom simply an absence of shackles; it was a presence of self-governance and participatory rights.
The twentieth century witnessed freedom expanding into new social and economic territories. As middle classes emerged in the West, personal freedoms came to include choices around lifestyle, sexuality, and consumerism. The 1960s further propelled a cultural revolution where individual expression and self-realization were championed. Today, activists continuously push the bounds of freedom to include liberties often taken for granted by others, like freedom from discrimination, freedom of religion, or freedom of movement.
The Ongoing Evolution of Freedom
This brief history shows the dynamic, evolving definition of freedom over time. A concept once focused on physical limitations broadened to encompass political, social and personal empowerment. Such an evolving understanding of liberty remains an ongoing project, continually pressed forward by those still waiting to experience its full promise.
Yet today in a world of corrupt money, the more pressing aspect is how to attain such a profound self-expression and vast choice.
Fast Forward to Financial Freedom From the History of Freedom
Let’s start with money – often somewhat controversial topic even a taboo topic for some. Money is frequently considered the “root of all evil”, and seems that this negative perception has persisted across generations. Societal taboos have created stigma around openly discussing finances. Yet, when handled responsibly, money can also enable trade and prosperity.
For me, money is an option for choices that enables the exchange and participation in society with reduced friction – money is a concept and tacit agreement. Most of the time when speaking of money, we mean currency, more precisely fiat currency, or units of cash such as dollars, British pounds, euros etc. If you want to learn more about the difference, I highly recommend Mike Maloney’s video series, Hidden Secrets of Money.
In other words, once you delve deeper, you realize money and currency (a degraded form of money) are not inherently good or evil. They are simply “units of freedom” – very liquid form of choice.
Financial Independence vs Financial Freedom: Defining Two Key Milestones on the Road to Financial Liberation
Financial Independence: Achieving the Freedom to Work on Your Own Terms
In the realm of personal finance, achieving financial independence is a transformative milestone that liberates individuals from the constraints of traditional employment. It empowers them to live life on their own terms by generating enough passive income to cover living expenses. This provides a safety net against unexpected financial setbacks and the freedom to pursue personal passions without relying on a paycheck.
Attaining financial independence requires cultivating financial literacy, embracing disciplined savings and investment strategies, and often exploring multiple income streams.
A great starting point is budgeting – tracking expenditures and income to create a clear picture of your finances. Once you gain control over your financial statement, build an emergency fund to cover X months of average expenses (where X is the number of months for your desired safety cushion). If you are unsure where to start, I strongly recommend Yurema’s SPENDSMART budget planner. Only after you have control of your financial statement should any excess funds be invested to generate more earnings.
This journey demands patience, perseverance, and a clear financial roadmap. The rewards, however, are immeasurable: the freedom to choose where, when, and how to work, the ability to pursue meaningful passions, and the peace of mind that comes with knowing that financial stability is within your control.
In short, financial independence means attaining freedom of choice. This is achieved by spending less than you earn, avoiding unnecessary debts and risks, being prepared for emergencies, and aiming for passive income to cover expenses.
Definition of Financial Freedom: The Pinnacle of Financial Empowerment and Flexibility
The next stage is financial freedom. Financial freedom is a state of financial independence and empowerment. A state where individuals have sufficient financial resources to make choices without limitations or constraints by your finances – money is not a question. It involves having sufficient financial resources to cover living expenses, pursue personal goals, and weather unexpected financial storms.
Financial freedom expands upon the concept of financial independence. It encompasses not just covering living costs, but also the freedom to make choices and pursue opportunities without financial restrictions. It involves having sufficient financial resources to support the lifestyle you desire, the ability to retire early if you choose, and the flexibility to navigate life’s twists and turns without money worries.
Achieving financial freedom requires a combination of financial savvy, strategic planning, and a mindset shift. It involves setting clear financial goals, creating a comprehensive financial plan, and cultivating multiple streams of income, including passive income sources. It also requires a disciplined approach to spending, saving, and investing, as well as the ability to manage risk and adapt to changing financial circumstances.
Embracing Financial Freedom to Unlock Life’s Possibilities
To sum up, while financial independence enables you to quit a job, pursue other interests, or even do nothing – though doing nothing may not actually be possible – it focuses on leaving a career path, one or another way. True financial freedom, on the other hand, liberates you from financial restrictions —it allows complete flexibility in lifestyle, location, and the ability to indulge in the worlds luxuries without worry.
Finally, embracing financial freedom is not just about accumulating wealth; it is about gaining control over one’s financial destiny and living a purposeful, fulfilling life. By taking proactive steps towards financial independence, you can unlock the true essence of freedom and experience the boundless possibilities life offers. Whether conscious or not, it is always a choice.
What are your thoughts on your own future ambitions and which path you will choose? Please share your insights in the comments below. I’m interested to hear your perspectives on pursuing financial freedom.