Financial Freedom Is a State of Being (Not Just a Number in the Bank)

It’s not about reaching a net worth target or building a substantial bank balance that makes you financially free. It’s not even a milestone you reach after 30 years of grinding. Freedom is a perspective. It’s a state of being.

It’s the moment when money finally no longer dictates what you say “yes” or “no” to. Basically, it’s when wealth ceases to be an end in itself and instead becomes a tool to help you live fully in the present.

Garrett Gunderson, the bestselling author of “Killing Sacred Cows,” “What Would the Rockefellers Do?”, and “5 Day Weekend,” knows this well. Additionally, Garrett founded and sold an Inc. 500 financial firm, and today he helps entrepreneurs build wealth and cash flow without compromising their lifestyle.

Let’s uncover the truth behind what real freedom looks like — and why most people don’t have to wait until retirement.

The Wealthy Don’t Chase Retirement — They Design Freedom

Most people are conditioned to sacrifice decades of their life for the promise of someday: work hard now, enjoy life later. The problem? “Later” often arrives too late.

In Garrett’s words, if you’re living a life you want to escape, that’s not wealth, it’s a prison.

The wealthy have a different mindset. Instead of asking, “How much do I need to retire?” they ask, “How can I create enough cash flow today to buy back my time?”

Regardless of your net worth, you’re free when your investments produce predictable income that covers your lifestyle. That’s the core of both Garrett’s and my philosophy: build a life you don’t need to retire from.

Rethink the Meaning of Wealth

It’s not just about money when it comes to wealth. It’s about presence, purpose, and peace of mind.

Garrett refers to this as “Soul Purpose” — aligning your earning, spending, and investing with your true self. By aligning your values with your financial strategy, you’ll stop making constant trade-offs.

For example, I’ve met investors making seven figures, but living in scarcity. Why? They’re always afraid of losing what they’ve built. Other people with much less live freely because their lifestyles align with their cash flow, not their status.

In the end, true wealth is measured by options, not obligations.

Why the Wealthy Still Love Whole Life Insurance

Among the financial tools often misunderstood by the wealthy is dividend-paying whole life insurance.

Garrett has reframed how entrepreneurs view it. According to him, whole life insurance isn’t an investment; it’s a cash flow system.

Here’s why:

• Liquidity without volatility. You can grow your cash value tax-advantaged and independent of market fluctuations.
• Access to capital. If you want to fund personal or business needs, you can borrow against your policy.
• Tax efficiency. Taxes are deferred on growth inside the policy, and loans are tax-free.
• Legacy protection. By replacing assets you’ve gifted, donated, or invested, the death benefit allows you to spend or give more freely while you’re alive.

Garrett says the Rockefellers didn’t use life insurance to protect themselves, but to perpetuate their legacy. Essentially, it became a family banking system, a source of capital, liquidity, and security.

Build Cash Flow Before You Need It

In most cases, people are concerned with accumulating assets. The wealthy, however, focus on creating cash flow.

Garrett states that assets have value only if they generate income.

When your passive income exceeds your expenses, you are financially independent. As a result, you’re free to decide what kind of work you want to do, not because you have to.

Here’s how to get started:

• Invest for income, not speculation. You should focus on opportunities with predictable cash flow, such as real estate, dividend stocks, or private lending, rather than those that promise high returns one day.
• Design for liquidity. To quickly take advantage of new opportunities, keep capital accessible.
• Simplify your finances. Clarity is stifled by complexity. The wealthiest people I know have streamlined systems rather than a dozen scattered accounts or half-understood investments.

Protect Before You Grow

Often, Garrett reminds entrepreneurs that it’s not what you make — it’s what you keep.

As your wealth grows, asset protection becomes equally important. This is where trusts, LLCs, and insurance structures come into play.

By using a whole life insurance policy inside a trust, assets can be protected from creditors, lawsuits, and estate taxes. In addition, your assets are protected from probate and legal disputes.

In essence, it’s about sleeping well at night knowing that your wealth (and future) is secure.

The Trifecta: Three Steps to Lasting Wealth

Based on my own journey, and through countless conversations with financial thinkers like Garrett Gunderson, I’ve realized that freedom rests on a few simple pillars. Garrett calls this framework “The Trifecta.”

Entrepreneurs can use it to build financial fitness, achieve true independence, and unlock a level of freedom that comes only with a shift in thinking.

Trifecta #1: Get your financial house in order.

Building wealth requires a solid foundation. People tend to skip this step, chasing returns before developing financial stability.

As Garrett points out, getting your financial house in order involves tightening up the basics: your corporate structure, cash flow reporting, credit score, and liability protection.

For instance, the wrong business setup may result in a loss of Section 199A tax benefits and even increased audit risk. Compared to LLCs and S-Corps, sole proprietors who file Schedule C are four times more likely to be audited.

There’s nothing flashy about this first step, but it’s crucial. It’s about knowing where you stand financially — your assets, liabilities, and blind spots.

According to Garrett, there will always be financial surprises. With proper planning, though, 90% of them won’t derail or destroy you.

By establishing your financial fitness, you will be able to move forward from strength, not stress.

Trifecta #2: The power of financial independence.

When this happens, people’s definitions of “wealth” begin to change.

When you’re financially independent, your passive income covers your lifestyle expenses. It’s at that point that time no longer becomes a commodity — your money becomes your asset.

Despite this, most people are still stuck in what Garrett calls the “accumulation trap”: saving 10%, chasing a 10% return, waiting 30 years, and hoping for the best. The problem, as Garrett points out, is that the strategy doesn’t work very often.

Rather than chasing “someday,” focus on velocity and cash flow now. Reallocate those dollars into cash-flowing assets, such as real estate, businesses, or intellectual property, to plug financial leaks.

Momentum is built that way.

In my case, I reached financial independence before I was technically a millionaire because my passive income exceeded my expenses. On paper, net worth looks great, but cash flow allows you to be more flexible.

In Garrett’s words, net worth eats financial independence for breakfast.

Trifecta #3: Financial freedom is a choice.

At this point, mindset becomes everything.

On paper, you can be financially free — but still feel trapped. True freedom isn’t just financial; it’s psychological as well.

Garrett describes financial freedom as a choice made in the moment. By aligning your money with your values, you can let go of the illusion that more stuff equals success.

After reaching their freedom number, many people lose it again due to lifestyle creep – spending more as they earn more. As the goalposts move, so does their peace of mind.

Knowing your Investor DNA is the key to internal freedom. That means understanding your values, skills, and what truly motivates you. As Garrett explains, if we become engrossed in external factors like net worth, status, and possessions, we become slaves to our stuff.

When it comes to true wealth, you don’t just buy it; you walk away with it.

Live Rich Now

There’s no finish line to financial freedom. It’s living on your own terms — right now.

That’s why Garrett and I both encourage entrepreneurs to stop delaying happiness until someday. By structuring your money to serve your life (not the other way around), you unlock true wealth.

You won’t find freedom in retirement. You build it moment by moment as you spend, invest, and live.

Think about this. Do you want to live a life of freedom in the future, or do you want to live one where you don’t need to flee?

Key Takeaways

• Freedom is built, not bought. Financial freedom doesn’t come from hitting a number — it comes from designing a life in which money supports your purpose and your choices.
• Cash flow beats accumulation. Put your money into investments that will pay off now rather than those that may pay off in the future. The more predictable your income is, the more freedom you have.
• Whole life insurance is a wealth system. When properly structured, it creates liquidity, tax efficiency, and legacy protection – tools used by the wealthy for generations.
• Protect what you build. To protect your wealth, use trusts, LLCs, and insurance strategies.
• Purpose is the ultimate ROI. Burnout is the result of wealth without meaning. But when you align your money with your values, you’ll live richly.

Featured Image Credit: Pixabay: Pexels: Thank you!