Achieving Financial Freedom - What does it mean for you?

With rising costs and increased learning needs, financing our children's education is no longer a simple walk in the park. Discuss with other parents about how they are managing their finances to cope with their expenses.

Achieving Financial Freedom - What does it mean for you?

Postby UncleLim » Mon Aug 08, 2011 11:20 am

It used to be retirement after a long hard life of working. Now self-proclaimed financial gurus are everywhere teaching about achieving "financial freedom". So what does that term mean for you? Reality or myth? Is there really a day where you suddenly say "Ah! Today is my Financial Freedom Day. Let me stop doing everything I used to do. I am going to do something different from now on!" ?

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Re: Achieving Financial Freedom - What does it mean for you?

Postby WeiHan » Mon Aug 08, 2011 12:42 pm

I believe there is a such a moment......BUT someone said that when he had nothing, he thought 3 millions is alot and will be enough. After he reached 3 millions, he thought he might as well make 10 millions.

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Re: Achieving Financial Freedom - What does it mean for you?

Postby Kigg » Mon Aug 08, 2011 2:20 pm

I think it is a mind set thing. Like the chinese saying 知足常乐, if you are contented with what you have, then you will be happy. Money is never enough and wants are unlimited, so if one keep wanting wanting and wanting, then that person will never be satisfied. Sometimes we spend so much time looking at what we want, forgetting to appreciate what we already have...
I strongly believe that one can have all the money in the world, but that does not make the person the happiest man on earth.
:imanangel:

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Re: Achieving Financial Freedom - What does it mean for you?

Postby verykiasu2010 » Mon Aug 08, 2011 2:57 pm

financial freedom means you don't have to worry any more about financial liabilities etc...it does not matter the house is attap house or GCB or St Regis or Ardmore Park.....yes you can choose what you want to do without thinking how going to pay the next bill
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Re: Achieving Financial Freedom - What does it mean for you?

Postby UncleLim » Mon Aug 08, 2011 3:28 pm

WeiHan wrote:I believe there is a such a moment......BUT someone said that when he had nothing, he thought 3 millions is alot and will be enough. After he reached 3 millions, he thought he might as well make 10 millions.


WeiHan, you are right. This is confirmed by private bankers too. The 5M clients want to be in the 10M group, who in turn want to be in the 20M class. There is no end.

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Re: Achieving Financial Freedom - What does it mean for you?

Postby Funz » Mon Aug 08, 2011 4:23 pm

My Dad's current status is my yardstick for financial freedom.

House fully paid for. No other outstanding loans. Passive income of a few thousand dollars a month, enough insurance to cover the bulk of any major medical needs, and a liquid savings account that allows me to go on holidays if I want.

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Re: Achieving Financial Freedom - What does it mean for you?

Postby MadScientist » Mon Aug 08, 2011 4:42 pm

Funz wrote:My Dad's current status is my yardstick for financial freedom.

House fully paid for. No other outstanding loans. Passive income of a few thousand dollars a month, enough insurance to cover the bulk of any major medical needs, and a liquid savings account that allows me to go on holidays if I want.


Good benchmark!

NO LOANS is a biggie for me... Already done. :)

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Re: Achieving Financial Freedom - What does it mean for you?

Postby LOLMum » Mon Aug 08, 2011 6:56 pm

MadScientist wrote:
Funz wrote:My Dad's current status is my yardstick for financial freedom.

House fully paid for. No other outstanding loans. Passive income of a few thousand dollars a month, enough insurance to cover the bulk of any major medical needs, and a liquid savings account that allows me to go on holidays if I want.


Good benchmark!

NO LOANS is a biggie for me... Already done. :)


yes, everything all paid up, no loans, no more obligations to kids (they have to take care of themselves once they start working).

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Re: Achieving Financial Freedom - What does it mean for you?

Postby UncleLim » Mon Aug 08, 2011 8:11 pm

Funz, MadScientist and LOLMum, well done!

Loans are indeed a form of imprisonment that stops you from doing what you want to do. But banks will blatantly lie and say that easy credit gives you freedom. Sadly, many people believe in spending what they have yet to earn.

I remember long ago when I was a spring chicken working in an MNC. A colleague was telling us about her shopping spree. Her credit card bill was in the tens of thousands of dollars. As entry level employees, we were shocked and wondered how she was going to pay it all up. Turns out she has already calculated her estimated year-end bonus and spent it in advance. And it was only September!

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Re: Achieving Financial Freedom - What does it mean for you?

Postby jedamum » Mon Aug 08, 2011 10:34 pm

Funz wrote:My Dad's current status is my yardstick for financial freedom.

House fully paid for. No other outstanding loans. Passive income of a few thousand dollars a month, enough insurance to cover the bulk of any major medical needs, and a liquid savings account that allows me to go on holidays if I want.

Funz,
My inlaws' status is my yardstick for financial freedom. house fully paid up. no outstanding loans. PIL still working with comfortable income/savings and no major expenses. Hospitalization covered. They still get an allowance from us every month, but i think they spend more on our kids and they frequently 'fill up' our fridges for us during their visits and buys tonic for us too. :sweat:
we are reaping the benefits of their financial freedom mainly because we need not worry about their medical bills. we hope to be financially 'sufficient' (though we still have a 20yr debt with HDB! dh refused to accept his parents help with the loan as we have no way of forking out cash to repay them unless we sell our flat as we are single income family) so that our children need not worry about us too.

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