What is financial freedom, and why is it important? This question often strikes our minds. So, before we dive into the relevance of managing finances and assets in achieving financial independence, let us know more about this concept and its significance in today’s fast-paced world. Financial freedom is the state of having enough income or assets to comfortably cover living expenses, handle financial crises without relying on a traditional job, and achieve personal goals. It allows individuals to take control of their finances, allowing them to make choices based on their desires and priorities rather than being restricted by financial constraints.
It means having enough financial resources to bear your living expenses, allowing you to obtain many of your life goals by either earning money or inheriting financial assets from your ancestors. Methodologically, financial freedom is when your passive income exceeds your expenses, as you have enough income, savings, and investments.
In today’s fast-paced world, where every other person wants to make a place of their own in the market, financial independence plays a crucial role in strengthening their market position. Whether you are an entrepreneur or a market professional, having control over your finances puts you in a position of financial freedom, helping you achieve your financial and personal goals.
Why is Having Financial Freedom Important?
The importance of financial independence is far-reaching and goes beyond having just financial resources that suffice for one’s living. Below are some factors that make financial freedom more important than ever in today’s modernized world-
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Empowering Financially
Financial freedom involves financial planning, as it empowers individuals to make independent choices without facing any financial constraints. Through this empowerment, one can lead a flexible and secure daily life.
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Emergency Preparedness
Having savings as an emergency fund makes an individual ready for emergency situations. Individuals can tap into these funds in times of unexpected expenses, such as a medical emergency or job loss. An emergency fund is a pool of money set aside to cover emergency crises.
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Achieving Financial Goals
One can attain financial freedom through good decision-making. These decisions make financial goals more realistic to achieve. It involves not only gaining financial independence but also living a purposeful and passion-driven life.
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Ensured Financial Security
Security is a tradable financial asset. Once an individual reaches financial independence, they are safe from situations that may cause financial losses. For instance, if you get fired without prior notice from your job, your savings could provide financial security in such a tough time.
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Reduced Stress and Peace of Mind
The more money you have in your hands, the more confident and relaxed you feel about yourself and your family’s security. Knowing that you have enough money to cover expenses and emergencies can offer you peace of mind and reduce your stress level.
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Leaving Generational Wealth Behind
Earning money that exceeds your expenses helps you leave behind wealth for the coming generations of your family. By running a successful business or getting a career in entrepreneurship, you can leave generational wealth behind for your family.
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Investment Power
Your financial status determines your investment power. If you have more money in your hands, you are more likely to invest it in the market or industries of your choice to get returns on your investment. The more you invest, the more you flourish financially.
Financial Services in Ensuring Financial Freedom
So, if you are to explore the full potential of financial independence, financial services are there to help you navigate the path to maximize your financial status. These services are designed to assist businesses and individuals in managing their finances well. Below are the five best financial service-providing companies in the USA that make finance management smoother and easier-
JP Morgan Chase & Co.
JP Morgan Chase & Co. is a leading global financial services offering company that has progressed through service and innovation for over 225 years. It aims to support the world and local economies by delivering shareholder value and investing in the clients’ progress. It is as strong as the communities it serves and dedicates itself to creating opportunities for global financial growth.
Bank of America Corporation
One of the world’s financial organizations, Bank of America serves individuals, small and medium-sized businesses, governments, and large corporations with a wide array of banking, investment management, and other risk management and financial products and services. It upholds the purpose of making financial lives better through responsible growth.
Citigroup, Inc.
Citigroup is a multinational investment bank and financial services company that is headquartered in New York. As a pioneering global bank for institutions with cross-border needs, it excels in wealth management and personal banking. In today’s complex financial world, businesses and geopolitics are fabricating new dynamics, and consumers expect wealth services to be a seamless part of their digital lives. Citibank stands at the intersection of this expectation and financial services.
Wells Fargo & Company
Wells Fargo & Company, as a financial service provider, puts people and communities first. It focuses on making a positive impact by supporting a sustainable and inclusive future for individuals and communities. Wells Fargo has helped people go further with their money since its establishment in 1852 by William Fargo and Henry Wells.
U.S. Bancorp
An American multinational financial institution, U.S. Bancorp, has ranked 105th on the Fortune 500. It has shifted more than 80% of its transactions and 65% of its loan sales online, securing a name as the world’s most ethical company. To stay ahead, the company is harnessing the power of technology to operate more efficiently and improve client experiences. At the core, it invests in the communities it serves, empowering their financial power and potential.
By collaborating with these financial service-providing companies, individuals, businesses, and communities can strengthen their financial footing in the financial market.
Unlocking Financial Freedom With Asset Management Services
Asset management is another door through which one can attain financial independence and security. In the U.S., many asset management companies help businesses, individuals, the government, and large corporations manage their assets effectively to obtain financial security and freedom. Here are the five asset management companies of the country that successfully manage various assets-
BlackRock
BlackRock is an asset manager and a leading provider of investment, risk management, and advisory solutions. Serving as a fiduciary to its clients and investing on their behalf, BlackRock helps millions of Americans ensure their financial well-being. Fortune magazine honored it as one of the World’s Most Admired Companies for the 12th consecutive year, ranking 1st in the asset management sector.
Vanguard Group
This American investment management company is popularly known for its investment advisory services. Its unique structure allows its investors to own their funds, making them the ultimate owners of the company. Vanguard manages trillions of dollars in assets and delivers a wide range of investment services and products. Its clients propel its mission of a long-term investment approach that reduces cost.
Fidelity Investments
As its mission echoes, Fidelity Investments is a partner that helps bring people’s plans to life. By collaborating with a dedicated team of advisors, it has created a comprehensive asset or wealth management strategy. Fidelity helps investors achieve their financial goals, which assists more than 29,500 businesses in supporting their employees and 15,900 worth of wealth management firms that have innovative investment and technology solutions to flourish their business.
Morgan Stanley
Morgan Stanley is committed to helping businesses, people, and institutions build, manage, and preserve assets or wealth to let them pursue their financial goals. It has been a global leader in financial services for nearly a century. The E*TRADE platform from the company now allows individuals to invest on their own with the knowledge and insights of a trusted partner. Its wealth management approach encompasses advice for families and individuals, products and planning, digital tools and online access, and corporate and institutional solutions.
LPL Financial
As a leading wealth management firm for independent advisors across the US, LPL leverages technology and available resources to help its clients succeed in managing assets. Founded in 1989, this company is regarded as the largest independent broker-dealer in the country. It leads the financial advisor-mediated marketplace and supports nearly 29,000 financial advisors and wealth management practices of approximately 1200 financial organizations.
It has approximately $1.7 trillion in brokerage and advisory assets under its custody on behalf of 6 million Americans. From a wide array of advisor affiliation models to investment solutions, practice management services, and fintech tools, LPL ensures a flexible business model, technology, and resources for institutions and advisors to thrive in market competition.
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