Money

What is financial freedom?

Allan Johnson of Johnson & Tennent Chartered Accountants
Allan Johnson of Johnson & Tennent Chartered Accountants Janie Kayes

WHAT is financial freedom? For most people, winning millions of dollars in the lotto would be necessary for them to feel financially free - while others would consider themselves free with considerably less resources. 

So the question is: what does financial freedom mean for you? If you talk to financial planners (as I often do), most would agree that people tend to overestimate the amount they need to achieve financial freedom. With some expert guidance, you can calculate the necessary amount with reasonable accuracy. An appropriate plan can then be developed to achieve that end result.

However, the real benefit of this process is the peace of mind that you gain by knowing how much money you need, and having a workable plan to get there.

Defining what financial freedom means to you removes the stress of not knowing where you are heading, and having some vision of the end result provides motivation when times are tough. Of course, having your definition in writing (somewhere you can often refer back to!) is key to maintaining your focus.

If you want to define where you want to be financially, you need to clarify the difference between happiness and wealth - a fine balance. I'm not saying that wealthy people are not happy, some people just need more wealth to be happy than others!

So, what makes you happy? What do you enjoy doing? You need to understand the activities, possessions, relationships and passions that resonate with you - because financial freedom will be having sufficient wealth to enjoy these things as often as you desire.

Clearly, to be able to do that you need a certain amount of wealth, and this is how you should be defining financial freedom - sufficient wealth to enable you to enjoy your heart's desires. Once you know the end result, you need to come up with a definite plan to achieve this result (and don't forget, the timeframe you want to do this in is a big consideration).

You will more than likely need some expert assistance to make sure your plan is viable and to help you keep on track.

You also need to ensure that your plan is written in language you can understand. Don't be afraid to ask for help - it's a lot less painful to learn from mistakes that other people have made, and the time you save in achieving your goal will be well worth the investment.

Now is always the right time to start moving in the right direction - and the first step is to define what financial freedom means for you and start taking giant steps to achieve it.

Topics:  allan johnson budgeting income opinion



10 best street art spots to take an Insta selfie

IF YOU are in need of a few trendy new Instagram snaps, then get your phone and selfie-stick ready and head to Brisbane.

Theatre royalty graces Brisbane stage

Don't miss Charles Edwards in this incredible theatre performance.

WHEN acting royalty comes to town, you sit up and take notice.

Don’t go chasing waterfalls…find them on these drives!

The Scenic Rim is just one place nearby that you'll love.

BRISBANE isn’t all bright lights and city slickers.

Your boots are made for walking these tours

Brisbane Greeters tours are a great way to learn the local history of the city.

YOU don’t need a bike or bus for a seriously good tour of Brisbane.

Discover Brisbane’s laneway gems

Brisbane's laneways will surprise you.

NOT all of Brisbane City is as it seems…

Drink where the cool kids do this summer

There are a bunch of new bars open in Brisbane, make sure you're there!

CHECK out these new funky bars.

Science Festival seriously awesome

Don't miss the World Science Festival Brisbane!

CALLING everyone who wants to see something totally cool.

February full of crime in Bundaberg

Police are currently investigating a number of wilful damage offences in Bundaberg.

Wilful damage reports for the month

Murder victim's father disgusted by TV segment

NOT HUMAN: A promotional shot being used by A Current Affair.

Father of murdered woman outraged

Bundy's got a new distillery

SPIRIT SHINES: The team behind Bundaberg's newest distillery and brewery, Rick Prosser (spirits), Michael Nash (sales/marketing) and Paul Mark (beer/cider).

Kalki Moon set to rise

Local Partners

HUGE OSCARS FAIL: Wrong film handed Best Picture award

IN A monumental stuff-up, La La Land was incorrectly named Best Picture. During the acceptance speech, the real winner was revealed.

Blue Heelers' Ditch Davey joins 800 Words cast

Ditch Davey joins the cast of 800 Words as Terry, the younger brother of George, played by Erik Thomson.

George Turner's brother, Terry, arrives to Weld with a 'few demons'

Oscars winners 2017: Full list of Academy Award winners

Viola Davis accepts the award for best actress in a supporting role for Fences at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

WHO won Oscars this year? Here’s a full list of every winner.

Why can’t Nicole Kidman clap properly?

Nicole Kidman's style of clapping has puzzled Oscars viewers.

FOR some reason, it seems Nicole doesn’t really know how to clap.

Muslim actor makes Oscars history

Mahershala Ali accepts the award for best actor in a supporting role for Moonlight at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

MOONLIGHT star Mahershala Ali makes Academy Award history.

NO ONE OFF LIMITS: Kimmel burns down the house at Oscars

Host Jimmy Kimmel speaks at the Oscars on Sunday, Feb. 26, 2017, at the Dolby Theatre in Los Angeles.

HOST delivers a torrent of abuse on Hollywood’s night of nights.

Oscars guest’s shocking wardrobe malfunction

Blanca Blanco arrives for the 89th annual Academy Awards ceremony at the Dolby Theatre in Hollywood, California, USA, 26 February 2017.

ACTRESS suffers X-rated wardrobe malfunction.

Mining homes dive: $600k homes sell for $120k-$300k

18 Yeates Street, Moranbah sold for $135,000 in December, after being repossessed by a bank. The owners bought for $545,000 in August, 2011.

The economy still has two speeds, but with a painful twist

Growing optimism in realty markets

Work on the gas pipeline at the Bundaberg Port.

Market shifting from buyers' market to vendor

Mackay's property market climbing like a Rocket Man

Renewed confidence in Mackay means more homes are being snapped up by those eager to plant their roots in the region.

There's movement in the real estate sector and it's all positive.

'Why we drove 800km to buy a treehouse with a disco ball'

The new owners have planned a few updates, but will stick with much of the original design.

A couple travelled almost 800km for the home of their dreams.

The trick homeowners are using to buy more properties

Chantelle Subritzky leaves her home each week for Airbnb guests.

Queenslanders are going down this path to help pay their mortgages

Ready to SELL your property?

Post Your Ad Here!