freedom important to you?”
provides many freedoms including freedom of speech, press,
religion, and assembly. It does not address economic freedom
specifically. However, the authors understood that without economic
freedom those listed freedoms may not be available.
What are the
building blocks of economic freedom? They are freedoms of mobility,
employment, education, association, and location. Let’s examine
each of these.
In the U.S. you
may travel freely throughout any of our 50 states. If you live in
Minnesota and vacation in Hawaii, you simply go there without
restrictions. You may travel using a motor vehicle or using trains,
airplanes, boats, or buses. The freedom of mobility creates other
freedoms as well.
You are not
pre-ordained to work at a particular occupation. You may work in a
different job than your parents. Freedom of employment allows you
to seek other opportunities. You may work in the trades, in
business, in education, in medicine, or in government. You may work
for someone else or for yourself. Plus, you have the freedom to
change occupations whenever your circumstances
education allows you to seek the instruction that is best for you
personally. Although K-12 schooling is required, it may be obtained
through homeschool, a private school, or a government school. You
may get specialized training online, through a union or
cooperative, a government program, or a non-profit organization.
You have the freedom to decide what education is best to help you
achieve your goals.
You are not
constrained by law as to whom you may associate with. There are
literally thousands of organizations, unions, churches, and clubs
to choose from. You are free to join any of these that you qualify
for. In our free and open society, you decide with whom you want to
Based on your
income and credit, you have the freedom of location. You may live
in a single family home, an apartment, or a condo. You may be 2
blocks or 6 hours away from work. Thus, when opportunities occur
beneficial to your family or business, you can always relocate to a
In summary, we
enjoy the economic freedom to change locations, education,
occupations, and associations. And, the freedom of mobility that
you derive by being able to travel provides you with the means to a
more productive and enjoyable life.
And, that is
today’s Morning Minute.
“What Will You
Your aunt in
Montana just passed and left you a $25,000 inheritance. What will
you do with this money? Let’s examine some pros and cons of your
dream vacation because you may never have this chance
again? PRO: You will have a great time, meet some
wonderful people, and take lots of pictures/videos that you can
enjoy forever. CON: The money will be gone soon with no
tangible return on the investment.
Upgrade to a
new(er) car with no payments?
PRO: You upgrade/replace your current vehicle with one
that is much less likely to need costly repairs in the next 3
You invested in a
depreciating asset that quickly decreases in value.
Pay off your
credit card balances. PRO: You eliminate
those monthly payments and high interest rates. If your rates are
25% and payments total $500 per month you will realize a terrific
return on this investment. CON: The money will not be
available for later expenses. Plus, if you start using the credit
cards again you will be back in the same shape a year from
stocks/bonds for your retirement. PRO:
Properly invested you may realize a double digit gain while
delaying paying taxes on part of the money. CON: If you
don’t pay off some high interest rate debt your overall gain may be
home…stop renting. PRO: Start
building equity in your home instead of paying your landlord.
Interest paid on the home loan is tax deductible. Plus, home owners
usually have higher credit scores than renters. CON:
Home ownership means you pay for your own upkeep and
rental property. PRO: Properly done you
will gain increased equity in an appreciating asset while creating
a positive cash flow to help with other expenses. CON:
Rents may not be paid on time. Plus, there will be aggravation,
maintenance, and repair costs.
There are other
options as well…each with a PRO and a CON.
There is no universal right or wrong answer. And, your decision
will say a great deal about you and your relationship with money.
How you handle positive opportunities now, may indicate how you may
handle negative ones in the future.
Please take some
time to think about this. Then, please share the action(s) you
might take if you received a $25,000 inheritance.
That is today’s