What’$ More Important Than Financial Freedom?

If you read articles on finances and retirement planning, you understand the term, “financial freedom.” Simply stated, financial freedom is achieved when you acquire enough wealth to provide for personal and family needs for the remainder of your life. This is a dollar amount that is defined by a series of projections and calculations. There are two additional terms I believe everyone should define for themselves, and strive to achieve.

The first, I call “financial comfort.” You reach financial comfort when, if you lose a significant portion of your income or net worth, you’re not forced to make major changes to your lifestyle. You won’t have to move to a less expensive house or remove Junior from private school. You get what I mean. Achieving financial comfort is an indication that you’re living well within your means.

The most important financial position to strive for is “financial satisfaction.” Financial satisfaction exists, when despite a sudden, significant increase in your salary or net worth, you have no desire to change any major aspect of your life. Achieving financial satisfaction indicates that you’ve developed a lifestyle where your ultimate happiness is not derived from your material possessions. To me, there is no more satisfying position to reach.

Dr. Mike Goldstein
Goldstein Management