Trading Your Way to Financial Freedom, Can It Be Done? 

The title I’ve chosen for this post was made famous by Dr Van Tharp, who titled his second book of the same name.

It’s an intriguing title because it releases one’s emotions and their own personal imagery of financial freedom and what that actually means to them.

We are all different, in such that my definition of financial freedom may be very different to yours. However, I think Dr Tharp’s definition hits the nail on the head because he describes it as the following;

“Financial Freedom simply means that your money working for you makes more money than you need to meet your monthly expenses”. So for example if your expenses are $5000 per month and your money working for you makes you $5000 per month, you are by definition financially free.

I think the above will resonate with most people because it allows everyone to be different in their spending habits yet defines it that if their spending habits can be fully covered by passive income then they are financially free. I believe it is a very liberating definition. In the past, I personally use to think I needed to have a certain end figure in your bank account. Most people would probably think the same and even go as far as saying, ‘I want to have a million dollars’. 

But what does ‘having a million dollars’ actually mean? I’m sure they don’t physically want a bunch of paper with past Presidents and famous people on them. In the end, what we all want is, what the money can do for them. Potentially its the freedom of financial worries, time to do whatever they please, and being anywhere they please with who ever they want.

Therefore no matter where you are in life, especially if your monthly expenditure is quite low, you can in effect be financially free much more quicker than even a high paying executive who indulges in their luxurious lifestyle with far higher monthly outgoings.

Can you imagine, a lower paying employee being able to achieve financial freedom simply because they chose to live simply and contently without the stress of 60+ hour work weeks of higher paid positions and actually being able to say they are financially free? 

So trading your way to financial freedom is indeed not just a fantasy but also a reality for anyone if you choose to put in some effort to learn and do. It also takes away so much stress of the traditional definition and imagery of financially free people with many millions of dollars living by the beach and retiring early. And trust me, you don’t want to retire early. I tried it for 18 months, sat on the beach and read my books and it eventually drove drove me nuts after 12 months! 

Don’t get me wrong, becoming not just financially free but becoming financially wealthy can actually be achieved over time. So why ruin your current moment of life fulfilment chasing a much longer-term goal of potentially many millions of dollars and stressing when you can actually achieve financial freedom in a much easier way and shorter time frame?

I share this because Dr Tharp’s financial freedom definition was not my first goal when I began trading. I like most people imagined financial freedom as the image I described earlier. The successful trader that was screaming and shouting orders furiously like those in the movies, manically buying and selling with my eyes glued to the screens all day making millions living an actioned packed trading lifestyle.

Fast forward a decade and a half later and that imagery could not be further from my current reality. 

I was lucky enough to come across Dr Tharp’s work and thinking which influenced me greatly many years ago and when his definition of financial freedom became my goal, I knew from the start I could do it within a much shorter period.

The main benefit; I began to relax and trade much more effortlessly because I was no longer chasing millions a year, but thousands a month to cover my expenses and I was financially free within six months by that definition. My trading profits covered my monthly expenditure and I was now free to pursue trading as a passion without the stress of instantaneous success to millions. By doing this, my trading actually improved dramatically over time because I longer chased the opportunities, but the opportunities came to me. Therefore my only job was to recognise these opportunities and execute.

I then asked myself, how can I live a much more simple but at the same time, fulfilled and content life by eliminating any wasteful spending which allowed me to look and feel rich, but which needed me to continue to work actively to be able to afford?

I believe this is a question everybody seeking financial freedom can ask themselves. Your answers will surprise you.

By simply deciding to live simpler and cutting unnecessary wasteful expenses, you can dramatically shorten your financial freedom journey and once reached, aim for financial abundance as your next goal.

I truly hope the above helps inspire you to chase your financial freedom through trading if you choose to. Your journey can can be much more simpler and shorter than you may imagine it to be.

I end by saying that I am just like you, and if I’ve been able to achieve it, so can you.


If you like this post, can you do me a favour and click the ‘Like’ and ‘Share’ buttons to spread the message!

You may also like


Effective Trading Solutions Pty Ltd trading as (ACN: 160 101 959) (“theFreedomTrader”) is registered in Australia and is a Corporate Authorised Representative (CAR No. 1267698) of Australian Financial Advisory Group Pty Ltd which is the holder of Australian Financial Services Licence No. 475300). All material provided on this website is general advice only and does not take into consideration your personal objectives, financial situation or needs. You should seek independent financial advice and read the relevant disclosure statements prior to acquiring our services. does not operate as a formal training provider and is not registered as a training provider.