Achieving financial freedom: the mindset you need to build wealth

FINANCIAL freedom is a goal that many aspire to, yet few truly achieve.

- THOMAS BERRY

It’s often viewed as a simple formula: earn more, save diligently, and invest wisely. However, financial freedom also entails establishing sound financial habits early on so you can build enough wealth, passive income streams, or savings to comfortably cover your expenses and live financially free.

Financial freedom isn’t about keeping up with the Jones'

It is ingrained in our nature to compare ourselves to others, and there is a tendency to equate financial success with the vehicles we drive, the places we live, and the lifestyles we lead.

However, true wealth lies in being able to control one’s time and make choices without financial stress.

Those who accumulate wealth over time understand the value of living within their means and prioritising savings.

This simple shift in mindset can empower individuals to achieve long-term financial freedom.

Achieving financial freedom is not solely about increasing income or making the best investment decisions; it also involves understanding how our behaviours and thought processes shape our financial choices.

Pioneers in behavioural finance Amos Tversky and Daniel Kahneman have shown that humans do not always act rationally when it comes to making sound financial decisions.