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How to Achieve Financial Freedom and Contentment Through a Strategic Financial Plan
- Alajahwon Ridgeway
- Mar 12
- 5 min read
Written By: A.B. Ridgeway, EA, MBA, CPWA®️
Achieving financial freedom is a dream for many, but it often comes with misconceptions. Many people believe that a higher income will automatically lead to a more fulfilling life. However, true financial freedom is about how you understand, manage, and plan your finances to support the life you truly desire, not how much money you have.
Understanding Financial Freedom
When you think of financial freedom, what comes to mind? For some, it may be having a large sum in the bank or enjoying luxurious purchases. However, simply having money does not mean you are financially free. Often, a high income comes with significant responsibilities.
Consider Jamie Dimon, the CEO of JPMorgan Chase. While he earns a multi-million dollar salary, he is also pressured by intense responsibilities, like government regulations and managing a multi-billion dollar company. This illustrates that financial success can bring its own set of burdens and decisions. Sometimes stripping us of our free time or time enjoying our personal hobbies.
The Illusion of Wealth
The idea that financial freedom is just about "having money" can be misleading. True financial freedom allows you to live according to your values and desires without the constant worry of financial stress.
Your aim should be to create a financial plan that supports a balanced life while fulfilling your responsibilities, rather than simply accumulating wealth.
The True Measure of Freedom: Lifestyle vs. Wealth
Let's consider an example: A person living on $30,000 a year while having $1,000,000 in savings can potentially enjoy 30 years of financial freedom. In contrast, someone living a lavish lifestyle costing $1,000,000 annually with the same savings is on the brink of financial crisis after just one year.
This highlights that financial freedom comes not just from wealth but from aligning your lifestyle with a sustainable financial strategy. Knowing you can survive on your income, increases self-confidence and your sense of financial freedom.
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Gratitude and Contentment in Financial Planning
The Bible emphasizes the importance of gratitude. Hebrews 13:5 states, “Keep your life free from love of money, and be content with what you have…” This suggests that gratitude and contentment are essential components of effective financial planning. It's not just about how much you earn but how you manage what you have.
Having a mindset of gratitude can lead to smarter financial choices. When you create a financial plan rooted in your core values, you can live within your means, regardless of your income.
The Importance of a Strategic Financial Plan
How do you turn these principles into action? Start by creating a strategic financial plan. An effective financial map focuses not only on wealth generation but also on leading a meaningful life.
Assess Your Current Financial Situation: Begin by evaluating your income, debts, and expenses. Identifying where you currently stand is crucial for clarity.
Define Your Values and Goals: Ask yourself what freedom truly means to you. Whether it includes travel, education, or family time, define your personal goals.
Create a Budget: Establish a budget that mirrors your lifestyle while prioritizing savings. This budget should include essential needs, emergency funds, and future investment plans.
Debt Management: If you have debt, develop a plan to address it. Consider methods like the debt snowball (paying off smaller debts first) or the avalanche (focusing on high-interest debts). This systematic approach will help ease the burden.
Savings Plans: Set up dedicated savings accounts for specific goals. Automate your contributions to ensure you are consistently saving for the future.
Consult with a Financial Advisor: A professional can help tailor a financial plan to suit your specific needs and provide insights you may have overlooked. Planning is not hard, but it can be a lot easier when you hire someone to do the heavy lifting.
Finding Contentment and Freedom as You Manage Finances
Keep in mind that adhering to your financial plan is an ongoing journey. The goal is not perfection but consistent progress toward managing your finances effectively.
By fostering a mindset of gratitude and consistently aligning your financial plan with your evolving goals, you can achieve a sense of freedom. You’ll no longer just be chasing wealth but instead living on your own terms.
Overcoming Common Misconceptions
Many still believe that chasing wealth is the only path to financial freedom, but this is a misconception. Remember that true financial freedom encompasses a balanced life where financial obligations do not dictate your happiness.
Being content doesn’t mean settling for less; it means having a deeper appreciation for what you possess while maintaining a mindful approach to life and finances. You don’t need to be a millionaire to experience genuine freedom.
Embracing a Life Well-Lived
The most effective way to achieve financial freedom is not in the relentless pursuit of riches but in understanding how your values, lifestyle, and financial planning interact.
You may find that true wealth stems from living a life aligned with God. This holistic approach ensures you focus not just on your finances but also on your overall spirituality.
Cultivating Your Financial Freedom
Ultimately, financial freedom is not just about how much money you have. It’s about making thoughtful decisions that enrich your life and bring peace of mind.
By establishing and following a strategic financial plan, you can approach life with confidence. Make space for gratitude and contentment, and shape your financial future according to your values.
With the right plan in place, financial freedom is not just a dream; it’s a reality waiting for you to embrace.
If you are looking for a financial advisor, click below for a free consultation.
Meet A.B. Ridgeway:
A.B. Ridgeway, EA, MBA, CPWA®️ (info@abrwealthmanagement.com) is the owner and Christian Financial Advisor with A.B. Ridgeway Wealth Management. With a decade in the finance industry, his goal is to give believers clarity around the most confusing topic in the Bible, money, and tithing. A.B. Ridgeway helps tithing Christians become cheerful givers but unlocking their money-making potential, so they can prosper and be the great stewards of the wealth God has entrusted them with.
*Disclaimer: This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy or the completeness of any description of securities, markets or developments mentioned. This is strictly for information purposes. We recommend you speak with a professional financial advisor.
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