What does financial freedom mean to you? (9 28 25)

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We often hear the term "financial freedom," but what does it really mean? For many, it's not about being a billionaire — it's about having the peace of mind that comes with security and options. Today, we're breaking down this concept into six distinct levels, from basic stability to immense abundance, to help you understand where you are on your financial journey and what steps you can take to reach the next stage.

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

• What does financial freedom mean to you?

• Dow vs. S&P 500 vs. Nasdaq vs. Russell 2000: Do you know the difference?

• Is it possible to inflation-proof your retirement?

• Growth vs. value stocks: What’s the difference?

• Poll: Which of Clark's 3 favorite brokerages do you use?

• Q&A: Are REIT's a good investment?

• Smart money move of the week: Delete unused subscriptions.

💵 What Does Financial Freedom Mean To You? Our 6 Levels

Financial freedom means something different to everyone. For some, it’s the peace of mind that comes from never worrying about an unexpected car repair. For others, it’s the ability to say “yes” when friends invite them out to dinner without checking their bank balance first. And for many, it’s simply knowing that their retirement savings are growing steadily, even if their checking account isn’t overflowing.

Maybe financial freedom means being able to take a sick day without worrying about lost wages. Or having the confidence to negotiate at work because you know you could survive a few months if things went sideways. It could be as simple as buying groceries without calculating every item, or as ambitious as knowing you could walk away from your job tomorrow if you wanted to.

The truth is, you don’t need millions in the bank to feel financially free. Sometimes the most liberating feeling comes from having a solid emergency fund, stable employment, and a retirement plan that’s on track — even if you occasionally carry a credit card balance or can’t afford every vacation you’d like to take.

That’s why we’ve broken down financial freedom into six distinct levels. You might find yourself feeling secure and content at Level 2, while your neighbor won’t feel truly free until they reach Level 5. In the full article, we break down the 6 levels of financial freedom, from basic stability to immense abundance, to help you define your own goals and create a plan to get there.

📚️ Recommended Reading

✅ Poll: What’s Your Take?

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “Do you own gold?”

Here’s how you answered:

• Yes: 22%

• No: 78%

💬 Ask an Advisor

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

John in Georgia asks: Are REIT's a good investment?

Wes Moss says: It depends. Some are good, some are bad. A REIT is a publicly traded company that owns a variety of real estate assets. To qualify as a REIT, the company must pay out at least 90% of its taxable earnings to shareholders. This structure allows the company to avoid being double-taxed on its earnings. The company benefits from this structure by being able to access capital markets more easily to grow and acquire more real estate. Not all REITs are good investments. The performance of a REIT depends on the type of real estate it specializes in. There are many different kinds, including apartment, office, hospital, industrial, and data center REITs. Some sectors, like healthcare and data centers, have performed well, while others have struggled. A good strategy is to invest in a basket of REITs through an index fund to diversify and mitigate risk. REITs typically offer higher dividend yields (around 4%) compared to the S&P 500 (around 1.2-1.3%), making them attractive for investors seeking income.

💸 Money Tip of the Week

☎️ Need Money Help?

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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