What is the difference between financial freedom and financial independence?

Financial freedom and financial independence are often used interchangeably, but they do have subtle differences.

Financial independence generally refers to the state of having sufficient financial resources to support one's desired lifestyle without the need for active income from work or employment. It is the ability to cover all your expenses through passive income sources such as investments, rental income, or savings. Financial independence typically involves having a large nest egg or investment portfolio that generates enough income to cover one's living expenses without needing to work.

On the other hand, financial freedom generally refers to a broader concept of being free from financial stress and constraints. It may involve having financial security, the ability to pursue one's passions and goals, and the flexibility to make choices without being constrained by financial concerns. Financial freedom may be achieved through a combination of financial independence and a focus on achieving a healthy worklife balance.

In summary, financial independence is a specific financial goal that involves having enough passive income to cover all your expenses without working, while financial freedom is a more holistic concept that encompasses financial independence as well as the ability to live life on your own terms without being constrained by financial worries.