Financial Freedom Isn’t Enough: The Real Goal is Financial Sovereignty
Commentary On Wealth Issue #6
“Financial freedom is just the halfway point. If all you want is to cover your bills, cool. But if you want to truly own your life, financial sovereignty is what you need.” — Brad Gibb
Let me take you back to 2015. I was pulling down a hefty salary at Goldman Sachs. By most people’s standards, I had it made—half a million bucks a year, a corner office, and a fast track to “financial freedom.” But let me tell you something: I didn’t feel free.
Yeah, I had the money to cover my lifestyle and a little extra to stash away like a good employee, but I was still chained to that job. I couldn’t make bold moves. I couldn’t walk away. Every decision was wrapped in the question, “What if this goes away?” I thought that was freedom, but it wasn’t.
So I left. I walked away from the salary, the title, the whole Wall Street game. Not because I’m crazy (though my mom still isn’t convinced), but because I realized there’s something way more important than financial freedom—it’s financial sovereignty. And without it, you’re still owned by something, whether it’s your job, your business, or worse, your fear.
Freedom To, Not Freedom From
Most wealth-building strategies focus on "freedom from" - freedom from work, from financial stress, from responsibility. But that's a limited and ultimately unfulfilling goal. Being Sovereign is about "freedom to" - freedom to make a bigger impact, to grow your business to new heights, to strengthen your family, to pursue your deepest passions and purposes.
This isn't about retiring to a beach to drink margaritas. It's about creating the financial foundation that will allow you to say "yes" to your biggest dreams and most ambitious goals.
Financial Freedom vs. Financial Sovereignty
Let’s break it down.
Financial Freedom is the ability to cover your expenses, live comfortably, and not worry about how you’re going to pay the bills. Sounds great, right? Here’s the problem: It’s still fragile. You’re still dependent on something—a business, a job, or the next big deal—to keep things afloat.
Now, let’s talk Financial Sovereignty.
Financial sovereignty is when you’re not just free to survive; you’re free to make decisions from a place of power, without your financial security hanging in the balance. It’s about owning or controlling assets that pay you, whether you’re working or not. It’s about having cash flow that covers not just your lifestyle, but your choices.
Here’s the brutal truth: Your business should make you wealthy, but it shouldn’t own you. Financial sovereignty separates your personal wealth from your business, allowing you to take risks, pivot, or walk away if you need to, without losing everything.
The False Promise of Financial Freedom
This is where most entrepreneurs get stuck. They hit six or seven figures in revenue and think they’ve “made it.” But here’s the harsh reality: most business owners never transition from making money to actually building wealth.
Taylor Welch and I talk about this all the time. He once said something that stuck with me:
“Cashflow that comes from work is your income. Cashflow that comes from what you own is your wealth.”
Think about that for a second.
We see this all the time. Entrepreneurs are under the illusion that because their business generates cash, they’re on the path to wealth. But unless you’re building assets that function independently of you—assets that will keep producing cash even when you’re not grinding day in and day out—you’re still in the same game as everyone else. You’re trading time for money.
Why is this so important? Let me share a sobering insight from a book called "Ordinary Men," which studied the guards at Auschwitz concentration camps. The study found that the only people who were able to stand up against the atrocities, to say "no" when their conscience demanded it, were those who were financially independent.
Financial sovereignty isn't just about comfort or freedom - it's about having the means to be your fullest self, to stand for what you believe in, and to accomplish what you're meant to accomplish in this world.
Your Super Bowl Ring
What’s the difference between Tom Brady and Dan Marino? Marino had the stats, no doubt. He was good. But when people talk about greatness, they point to one thing—Super Bowl rings. Marino never got one. Brady, on the other hand, didn’t just play the game—he won it over and over.
In business, your “Super Bowl ring” isn’t how much revenue your company brings in. It’s the assets you’ve built outside of it. It’s the wealth that lets you walk away or take risks when others can’t. Your goal isn’t just to survive; it’s to build something that lasts.
Most business owners don’t realize they’re one economic downturn or personal crisis away from everything they’ve built come crashing down. That’s not sovereignty. That’s barely survival.
Practical Takeaways
Assets Are the Endgame: The difference between financial freedom and sovereignty is simple: financial freedom requires you to work; sovereignty doesn’t. Build assets outside of your business that work for you—real estate, investments, or other income streams that don’t require your daily attention.
Break the Build and Burn Cycle: Many entrepreneurs feel like they’re constantly building, burning, and rebuilding. Sovereignty ends that cycle. With financial sovereignty, you create a base of wealth that allows you to pivot, innovate, and scale without burning everything down every few years.
Don’t Buy the Financial Freedom Lie: If your financial plan has you locking money away in a market you can’t control, you’re not free—you’re trapped. The only way to true financial sovereignty is through owning the right assets.
Ready to Move from Freedom to Sovereignty?
If you're tired of running the financial freedom hamster wheel and want to finally step into financial sovereignty, let’s talk. I’ve got the roadmap, and trust me, it's a hell of a lot better than the one Wall Street’s selling you.
Live Rich. Finish Wealthy.
Brad Gibb
P.S. A more in-depth commentary on Financial Sovereignty will be available in my new (upcoming) book - The Chief Wealth Officer. Be the first to know about by getting on the waitlist here!