3 Easy steps to Buy Your Financial Freedom
What is Financial Freedom and will it make you happy? If you think accumulating wealth automatically equates to happiness, at some point you’ll discover the truth – it doesn’t. You can have all the money in the world and still feel empty. Likewise, you can feel fulfilled and joyful—even while managing financial stress.
Financial freedom is simply an enabler to the ultimate goal – living richly. Doing what you want to do, when you want to do it, where you want to do it, and of course, with who you want to do it.
What is Living Richly?
A rich life will look different for everyone—but the steps to get there are surprisingly similar – and simple!
For me, it means living out a lifelong dream: spending part of the year in Australia and part in the U.S., embracing the best of both worlds.
I’ve retired from a long career in banking and corporate life, and now enjoy part-time work in real estate while sharing financial education with others—helping people design a life they don’t need a vacation from.
This balance gives me something I value deeply: time. It is my most valuable asset.
Time to stay involved in my teenager’s life (possibly more than she’d prefer right now!), time to visit friends and family, and time to walk along the beach or wander through the bush.
And yes—plenty of time for hobbies, too.
That’s what living richly means to me. It may look very differently for you.
Will Living Richly Make Me Happy?
YES – It will!!
Research consistently shows that happiness correlates more closely with family, friends, and freedom than with financial figures.
The freedom to spend time with loved ones, travel, pursue hobbies, and learn new things is an incredible privilege—but one that must be earned. You first need to save enough to buy your freedom. Once you do, you’re ready to live richly.
Money buys freedom… And freedom buys happiness.
How do I Live Richly?
To truly live richly, you must view your health—mental, physical, and financial—as interconnected. When your finances are in order, they create a foundation for your mental and physical well-being.
So how do you design a life that’s rich in meaning, not just money?
Start by planning intentionally across your working life, your retirement, and your legacy.
Read on to learn how to quickly see how much you need to fund your retirement – and make your rich life your reality.…
✨ 3 Simple Steps to Financial Freedom and a Rich Life
1. Dream it – Get clear on what your ideal life looks like (not someone else’s version)
- What do you want to do?
- Who do you want to do it with?
- How fit and well do you need to be to live that life?
2. Fund it –Align your spending, saving, and investing to support the life you design
3. Share it – Teach your kids, support your community, and leave something meaningful behind
Dreaming up the plan is the fun part — but understanding the cost to fund it is how it becomes reality.
How Much Does Financial Freedom Cost?
Freedom is not free! You need to save enough to provide you the privilege of freedom.
What constitutes “enough” is subjective; each individual defines it based on their own values, goals, and lifestyle.
Here are some tough questions to ask yourself:
- What do you value most?
If you’re unsure, start by examining how you spend your most precious depreciating asset—your time. Your values will be the greatest variable in your “enough” equation. If travel lights you up, your “enough” number may be higher than someone who values a quiet life at home. - What is your why?
What drives you? What gives your life purpose and meaning? A life of purpose and significance requires a clear why. If you’re driven to provide for others beside yourself, you spouse, children, friends, community, your “enough” may be higher than someone who is only providing for themselves. - Are you ready to take action?
The earlier you define your “enough” number, the easier it is to create a path toward it. Don’t wait until retirement is looming. Think now about your passions and your ideal future. - What kind of legacy do you want to leave?
Are you planning to preserve wealth for your children or “Die With Zero,” giving generously during your lifetime? Your philosophy affects how much you need to save:- If you spend $100,000 per year and plan to withdraw at 4%, you’ll need about $2.5 million.
- If you’re happy to draw down your funds more aggressively, your target savings can be lower.
- What do you currently spend?
Financial freedom starts with one key number: how much you really spend. Know it well, and you’re on your way. Ignore it and you’ll never have full control over your finances—let alone freedom.- Instead of asking, “How much money do I need for retirement?”, ask “How much do I spend?”
- Start with tracking the basics using this free template: mortgage, groceries, insurance, medical, and bills. and add on transport, entertainment and vacations,
- Your lifestyle expenses determine your target so you need to track them. If you’re not the budgeting type, commit to doing it for 6 months minimum, just to determine what you’re spending where. Who knows, you may surprise yourself and keep on tracking once your see how powerful the insights into your spending can be!
- How do you give back?
For some, it’s financial donations. For others, it’s giving time or expertise. Personally, I volunteer at a local wildlife hospital and offer free advice to help others achieve financial freedom. Though I give, I receive so much more in return! Many people want to leave a legacy after they’re gone. If this is you, you’ll need to plan for your portfolio to outlive you.
The Power of Knowing Your Financial Freedom Number
Knowing your “why” helps you determine your purpose and focus on what truly matters. But knowing your “enough” number helps you achieve your purpose.
Knowing your “enough” number allows you to enjoy life fully—where money supports your journey, rather than controlling it.
Without that number, you’re flying blind. Spend too much, and you’re stressed. Spend too little, and you miss out on life’s joys out of fear of running out of money.
Here’s an example of what amount someone with annual expenses of $100,000 might need to save, depending on how they plan to draw down their funds during retirement, and the associated risks involved. It’s based on a research-backed rule of thumb called The 4% Rule based on historical market data.
The 4% rule (I call it a guideline) for retirement budgeting suggests that a retiree should be able to withdraw 4% of the balance in their retirement account(s) in the first year after retiring, and then withdraw the same dollar amount, adjusted for inflation, every year thereafter for approximately 30 years.
This uses a simple formula of:
What if I need my funds to last me 30 years, I can’t have it running out in 15, 20 or 25 years? Well then, you will want to select the withdrawal that best matches your risk tolerance.
My Journey: From Success to Significance
Take the time to find out your “Enough” – Your “Financial Freedom” number now, so you can reach independence sooner, without working any longer than you have to!
For me, the turning point came when I realized I had reached my financial independence number—five years earlier than planned! Society’s default retirement age had kept me from re-evaluating sooner.
That realization forced me to ask new questions: What now? What really matters? What does a life of significance look like?
The answer was clear: I wanted to live a more purpose-driven life—one where I could be a benefit to others, continue learning, and keep growing. My family and I now split our time between the United States and the Sunshine Coast of Australia, fulfilling a lifelong dream of enjoying the best of both worlds. While in Australia, I volunteer at a local wildlife hospital, where helping rehabilitate injured koalas has taught me so much about their behavior and threats to their habitats. It’s deepened my appreciation for the richness of Australia’s native wildlife.
In both countries, I continue to offer practical money advice to individuals and families—helping them gain clarity and confidence in their finances so they, too, can live more freely and fully.
Financial freedom is an exciting new chapter, where you can try new things, and shape a future based not on what you have to do—but on what you want to explore!
With just a few tough questions and some simple math,
you can do the same!
LIVE RICHLY. FIND HAPPY.
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Kathleen McDowell is an investor, writer, and financial educator. She shares how to build wealth and reach financial freedom for the sole purpose of having the ability to live a rich life ON YOUR OWN TERMS and SPEND TIME ON WHAT MATTERS MOST.
She offers free financial education—no courses to buy, no crypto pitches, no hidden agenda. Just honest, practical advice from someone who’s achieved financial freedom and wants to help you do the same. Because it’s frustrating to see people stuck in jobs they don’t love or stressed about money, simply because they haven’t been shown the way out.
