Whats your definiton of financially free?

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Kaiokenryu
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Whats your definiton of financially free?

Postby Kaiokenryu » Tue Apr 01, 2014 11:34 pm

we have a huge diversity of financial means in this forum.

I'm curious as to what is your definition of being financially free.

for me: its never having to worry about how i'm going to pay for something I need.

By need i mean the following:
1. my shelter
2. my transportation
3. feeding myself
4. my child's physical and medical needs

Notice....my wants: a vacation, a fancy car, a bigger home, huge bank account etc......are not listed.

currently the only way i can begin to approach this is living well south of what my income can purchase....so that......if i blow two tires in the same day.....so what.....go get two new tires and think nothing of it.........thats freedom to me. if a tree limb comes through my roof......can i get a hotel for the week and not worry about having the money while the roofers repair from shingle to drywall in the ceiling?

some on here have money left over after discretionary spending has finished. I'm not there yet....If and when i get there.....I'm sure i will have to re-evaluate this definition. :D


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Postby JoDa » Tue Apr 01, 2014 11:56 pm

For me it's that plus being able to plan for the future. I can put money away every pay for needs, wants, and contingencies, and so I will be okay now and for a while. And my wants are pretty simple...mostly some vacation time (some of which I can do on miles/points) and enough that if my dog gets sick I can go to the vet without hesitation...I don't have or want a car and my housing expenses are pretty low.

Rest assured, though, you're ahead of a lot of people by simply being able to cover your needs and the odd emergency. Over the holidays, my brother's garbage disposal bit it. It happens, those things aren't made to last forever, and they're not insanely expensive to replace if you're handy enough to toss a new one in yourself (he is, as am I). Yet, I got to witness his meltdown as he balanced and rebalanced his checking account and called his wife multiple times to figure out if he could afford to replace it. Financially INSECURE is when you think $90 may break you...that's FOR SURE.
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tbka
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Postby tbka » Wed Apr 02, 2014 7:43 am

Right now I'm doing a modified Dave Ramsey thing. But having a credit card, is so a no no in his plan, I don't use it as debt, I use them as charge cards. I'm working on finishing the third snowball, and soon I'll be in a "Financial Secured" place.
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Postby jahsoul » Wed Apr 02, 2014 8:17 am

tbka wrote:Right now I'm doing a modified Dave Ramsey thing. But having a credit card, is so a no no in his plan, I don't use it as debt, I use them as charge cards. I'm working on finishing the third snowball, and soon I'll be in a "Financial Secured" place.

I'm down with Dave too. Like you said, although credit cards are a NO NO in the TMM, it is really all about usage. I purposely chose to use charge cards for that reason.

Right now, I'm snowballing my car payment, then the student loan, and then the mortgage but that is the only debt that I currently hold.
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linuxmachine
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Postby linuxmachine » Wed Apr 02, 2014 12:42 pm

For me, financially free means being able to live without money. Simply owning land and resources to support myself and the family is being financially free. Of course, this is not a practical reality for me, as the family prefers civilization, so I move on to the next best thing, which is simply having enough wealth to support me and the family (minus the younger generation. just the old ones like the folks) well beyond my ability to keep creating more wealth. Enough to have some left over for the youngin's :)

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Postby Robrus1 » Wed Apr 02, 2014 12:57 pm

Getting to a point where you're content with your financial status. I don't mind a little debt if the interest is low, especially when I know I have the funds to pay the loan off completely if need be. It means being able to live comfortably and enjoying life. My family and I have what we need, and plenty of things that are wants. I grew up poor, raised by my mother who was on food stamps and pinched every penny she ever made. I still don't know how she did it, but I remember thinking early on as a child that when I grew up, I wanted to get to a point where I could buy whatever I wanted at the grocery store, good shoes, and decent clothes without going broke. 3 things my mother never could do. Now that I've made that happen I'm extra appreciative of my situation. I never forget how things were growing up. It's what motivates me every day.

As long as the bills are paid, the savings grows, and we can take a family vacation periodically, I'm happy and worry free.
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Postby MemberSince99 » Wed Apr 02, 2014 9:08 pm

linuxmachine wrote:For me, financially free means being able to live without money. Simply owning land and resources to support myself and the family is being financially free. Of course, this is not a practical reality for me, as the family prefers civilization, so I move on to the next best thing, which is simply having enough wealth to support me and the family (minus the younger generation. just the old ones like the folks) well beyond my ability to keep creating more wealth. Enough to have some left over for the youngin's :)




Unfortunately you simply can't go buy a parcel of land and live happily ever after. They are going to tax you every single year on your land, and they will tell you what you can and cannot do with your land and your house, paid for or not. Should they feel like it, they can simply take it from you. If some employer wants a freeway through your land, or the oil company wants to run a pipeline, you get to find out how efficiently they can take it.


I've thought of this too, and it's a great fantasy but it just doesn't work out so well in reality. In the end we are all slaves and all under their control and ownership. And that is never going to change, because they will see to that (the "authorities" in this case).

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Postby JoDa » Thu Apr 03, 2014 6:44 pm

Yeah, but depending on where you live, those taxes may be REALLY, REALLY low. My dad bought some property to build his retirement home, and died before it ever happened (he died 3 months after he retired). My brother and I now own it. Yes, if we built something on it, we would pay more in taxes, but we currently pay $15/year on a LOT of acreage. From what I understand, if we built a simple cabin on it (for my brother to use while hunting there and me to get away from the city if I felt like it), it would go up to about $100/year. So long as we leave MOST of the land wild, we get EXTREMELY low property taxes for "preserving the wilderness."
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Postby otter » Thu Apr 03, 2014 10:20 pm

tbka wrote:Right now I'm doing a modified Dave Ramsey thing. But having a credit card, is so a no no in his plan, I don't use it as debt, I use them as charge cards. I'm working on finishing the third snowball, and soon I'll be in a "Financial Secured" place.


Dave Ramsey is sort of a mixed bag for me...

The Good:
  • He puts a strong emphasis on building an emergency fund. Which is something I'm a strong believer in.
  • Anything that gets people to pay down their debt is a good thing. I'm not a big fan of the snowball method- I guess because I'm a numbers guy and it makes sense to pay off a 25% loan than a 15% loan, but I realize for many people, it's a psychological thing-so whatever gets people to pay down their debt is fine even if they could pay it down quicker by paying less interest.
  • He gets people to prioritize. It's probably a good idea to have $1000 or whatever in savings before paying down your debt which should come before starting to invest, etc.

The So-so:
  • His whole approach to credit which resembles AA stuff. Okay so a sizable number of people can't handle credit. His approach may resonate with those people. He reminds me of an old friend who had a major alcohol problem (with 3 DUI's to boot) who told me I should stop drinking. Hey, buddy, just because you had a drinking problem doesn't mean I do with my 5 drinks a month (on average). Just because some have a problem with credit doesn't mean I do. I am not you!

The really bad:
  • Dave Ramsey gives awful investment adviceI don't just mean kinda bad, I mean really, really bad- he suggests investing in Mutual Funds exclusively- which is bad enough, but then he says you should use his "recommendations" which have 2-5% front end loads. I didn't even know they still had high load mutual funds anymore until I visited his site.

    So take Dave's advice with a grain of salt... some of it is good, some is meh, and some is just terrible!
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Postby samhradh » Thu Apr 03, 2014 11:49 pm

Kaiokenryu wrote:its never having to worry about how i'm going to pay for something I need.


I wish I had this attitude but the reality is I get stressed when not being able to buy lifestyle things (clothes, dinner out, etc) because for me that's the truest sign of being "free." Simply being able to cover the bare bones means I would be scraping by and that's dangerous territory. I am utilizing three 0% APR right now to keep my checking account (emergency funds) balance high as I'd rather have liquidity than a higher credit score.
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