Financial Security:
Financial security is the ability to cover your basic living expenses even if your salary disappears. Financial security is a step towards financial freedom.
Financial Independence:
Financial independence is the state of being able to support yourself and not depend on anyone else for income. It means having enough money saved or invested to cover your expenses for the rest of your life, without having to work for someone else. Financial Independence is lifestyle maintenance.
Financial Freedom:
Financial freedom is the ability to live the lifestyle you want without the concern about having a job or fixed income sources. It means having enough money to cover your expenses and being able to afford the things that bring you joy and happiness. Once you’ve achieved financial freedom, you can make the most of your life because your savings and passive income can fund it. Financial Freedom allows for lifestyle expansion.
In essence, Financial Freedom is about having enough money to live the life you want, whatever that means for you, while financial independence is about having enough money to sustain that lifestyle you currently have, without being dependent on a paycheck.