Financial Independence Vs Financial Security

[Mika]

Financial independence is a popular term among freelancers, work from home professional, self employed individuals. When they refer to financial independence, what they actually mean is the ability to make money without directly being employed by a person or a company. For a lot of individuals starting a business is also linked to financial independence. Being your own boss is linked to financial independence. Freedom to work at any time is linked to financial independence.

Financial security is very different from financial independence. Financial security refers to a situation where you can manage your expenses well, you do not have any debt, you have money for emergency situations, and you are also saving money every month.
Between financial independence and financial security, which do you want?

 

[Abigael]

It is so great to see your definition of the differrence between the two, I agree with it. I also would like to add that financial independence also means having your own money and don't need to depend on your parents or spouse to cover your expenses and bills. For me, I choose both. Meaning I earn my own money and I am able to manage it well.

 

[Alexandoy]

I agree with your definition of financial independence however the difference with my definition is the ability to not borrow money. You may be independent in your freelancing earnings but you borrow from time to time then that is not really independent at all. With financial security that is the peace of mind in thinking that you have the assets or savings.

 

[Setho]

I think that the overall aim of most people is that after some time of working they should be able to be financially secured. That is to say that they will be able to afford many things that they so desire and they will be able to pay for it comfortably without having to linger in debt for so many years.

 

[Mika]

Well, financial independence might be good but more than financial freedom I want financial security. For me, financial security means the ability to manage my expenses, the ability to save money, and the ability to invest in retirement funds. Financial security means your net income is just enough for you to live comfortbly.

 

[Jasmine]

I am opting for Financial security, which means I have money to buy all necessities, pay all bills, have enough funds for emergency situations, I can spend money without having to worry about anything, I can go to vacation whenever I want etc. Sadly, it is not very easy to attain Financial security.