Financial Independence versus Financial Freedom

Financial Independence versus Financial Freedom have slight difference.   Let us try to understand these two terms and their significance.

Financial Independence =  Zero-debt + Adequate Emergency Funds +
Adequate Health Insurance Cover + Income excluding Salary and Investments >= Average Monthly Expenses

So, when you’re financially independent, you don’t owe a penny to anyone and you’ve got your risks covered, but you still need to do something, but not work . One has to plan early in life to achieve Financial Independence at the time of retirement.

Now, lets move to the concept of  financial freedom.

Financial Freedom =  Zero-debt+ Adequate Emergency Funds+ Adequate Health Insurance Cover+ Income from Investments >= Average Monthly Expenses

So, this means when you’ve achieved financial freedom, you still don’t owe a penny to anyone and you’ve still got your risks covered. However, you don’t need to do even that something. In other words, you simply don’t trade your time for money. You’re paid interest to live rather than you paying interest to live.

What’s common between these two phases is quite clear. Get rid of your debt and be prepared for a rainy day(retirement) , and buy as much health insurance cover as you can and you’ll be well set for the journey towards financial independence and financial freedom.  AssuredGain focuses on these two concepts and help its client achieve them.   One has to start early in life and plan to achieve financial freedom and financial independence.

Please do call us at 9962439282 to introductory review to achieve Financial Independence  and Financial freedom.