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One of the wisest things to do early in your career is to know upfront if you will achieve financial freedom. You then assess what kind of financial freedom you will achieve and what your chances of achieving total financial freedom you have.

Not everyone that sets out to achieve financial freedom will achieve it. Research shows that out of every 100 people only 20% achieve financial freedom; And out of every 100 working professionals only 15% will end up in retirement financially free.  The big question is, where would you be at the end of your career; and what gives you the confidence that you will achieve financial freedom?

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Thus, the goal of today’s article is to show you some of the factors that will affect your ability to achieve financial freedom. And to then show you how to increase your odds’ of achieving it if your current odds are low. 

What is financial freedom

Financial freedom is the ability to fund your life from passive income. It is your ability to move from a life that is funded solely by active income to a life that is funded by passive income.

To achieve financial freedom, you must separate your physical presence from your income such that your absence is no longer a disadvantage. This means that your income must come regardless of where you are, how you work, and whether you choose to work. This kind of financial freedom can only be achieved when you have investments whose investing work can be completed before retirement and whose cash-flow can last for a lifetime.


Judging from your present position and the time you have left, would you be able to achieve this kind of financial freedom? If 100% of your current life is still dependent on an active income, you still have a long way to go. The only way to achieve this kind of financial freedom is to create a stable passive income that is worth the size of your current income and then transfer your source of livelihood to it. Only then can you achieve total financial freedom.


The truth is your current active income only has one purpose. And this purpose is to provide you the resources that you need to be free from depending on active income. If you fail to wean yourself off your active income before retirement, there will be unprecedented financial consequences awaiting you in the future.

Achieving financial freedom

There are three factors that will show you if you would achieve financial freedom; And your understanding or ignorance of these factors is what will determine your financial success.

The First factor is How You Interpret Your Childhood Experiences. One of the things that will affect your financial decisions in life is your childhood experiences. Your childhood experiences will affect how you spend, save and what you invest in and prioritize as important. Yet your background and childhood experiences only play a little role in determining your overall success.

This is true because successful people come from poor backgrounds, and successful people also come from rich backgrounds. So, no matter your background you can achieve financial freedom.

But there is one thing that can determine your success to a greater degree. This one thing is how you interpret your background and childhood experiences.

There are only two interpretations that you can derive from your childhood experiences. The first is a positive interpretation and the second is a negative interpretation. Positive interpretation sees the good in your background and experiences and uses this good to propel you towards success. It also helps you make more wealth creating decisions.

Negative interpretation sees the bad in your background and experiences and uses this to demotivate you from success. It also uses this to help you make more wealth draining decisions.

Thus, the most rewarding positive interpretation to have is to see your background as the reason why you will be successful. And the most negative interpretation to have, is to see your background as the reason why life is hard for you.
Persons with a negative interpretation see themselves as deprived and disadvantaged. The moment they begin working, they will make decisions that drain their income and give them only little room for savings.
For example, they will use their financial freedom money to put their children in the kind of schools they couldn’t go, even though they became successful without going to expensive schools, and even when success is no respecter of school.
They will use their financial freedom money to stock their houses with foods that make them feel rich and special. Even though these food are unhealthy and will land them in the hospital in retirement.


They will also create an easy family environment removing any kind of pain, discipline, or delayed gratification, even though success require pain tolerance, patience, and resilience.


The results are children with queens’ English, fancy university certificates but with no real skills to help any employer. Parents are having to carry the load of their graduate children longer than necessary.
Children are now sicker, fatter, entitled, and lazy. And worse of all is that they are now more emotionally fragile in a world that requires toughness to survive.
All these happened because of trying to run away from childhood experiences. Your childhood and background may not be perfect, but it gave you a gift. Today you are the hardworking, resilient, and responsible breadwinner and provider even without a Queen’s English or fancy certification.

Until you begin to see the good in your background and rid yourself of your expensive childhood deprivations and cravings, there will not be any money left to pursue financial freedom.


Successful people never look at their background in a negative way. They celebrate their humble beginnings and use their backgrounds as the motivation to strive towards success. The less material things you need to feel happy, important, and accepted the faster you will achieve financial freedom. Similarly, the more you know why you do the things you do the faster you will achieve success.

Who You Model

The fastest way to achieve any goal is to find a role-model and tap into these three things -their knowledge, their beliefs, and their actions. You must learn and model what they are doing, what their core beliefs are, and how they are thinking to get the same results.

The problem is most people never grew up around wealthy role models. This means that without the extra effort and commitment to find a wealthy role model you won’t make it. You must be able to always ask yourself, What will a wealthy man do in my situation and what will a poor man do? And then ensure that you are making more of a wealthy man’s decisions than a poor man’s decision. Unfortunately, it is easier to model a poor man’s decision than a wealthy man’s decision, because the former are easy and are all over the place. But until you model the wealthy man you cannot achieve financial freedom.


Thankfully, you can easily find wealthy role models today. There are several of them online and there are also at least three presents at your office 24/7, every day, from Monday to Friday. But rather than connect with them and model them you are busy resenting, hating, or judging them. Only a successful person can show you how to become successful and only successful people can help you achieve financial freedom.

If you keep modeling your middle-class colleagues and the people you saw while growing up, you will end up in retirement dependent just like your parents.


Your Discipline

There is only one thing that makes a person willing to act, even when they do not feel like it or are afraid to do it, it is Discipline.

Discipline is the only way to achieve financial freedom. The reason discipline is important is because success requires tough level decisions and the commitment to a future that is worth fighting for. Discovering a purposeful future and taking disciplined action is not a fun. So, most people spend their adult life doing the easy things and postponing the hard things that lead to success. But until you do the hard and high standard things you will not achieve financial freedom.


Knowing what to do to achieve financial freedom is easy – now you know. Doing what you know is the hard part, and frankly this is what is holding you back from achieving financial freedom.

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Comments expressed here do not reflect the opinions of vanguard newspapers or any employee thereof.