Financial Freedom is achieved when your income is higher than your expenses and you are not dependent on your 9 to 5 job for this.
Assets producing an income for life will give you Financial Freedom as long the income is higher than expenses. True Financial Freedom allows you to do whatever you are happy to do whenever you want. There is no age limit for Financial Freedom. You can be 25 or 50 years old. It’s never too late to start. Ultimately what Financial Freedom provides is good quality of life.
Financial Freedom is not about replacing your current income it is about creating enough passive income to cover your expenses. Let’s look at an example – An individual may be earning $100,000 a year there expenses are $65,000 per year. Financial Freedom is about creating passive income to cover the $65,000 a year in expenses. Once you achieve Financial Freedom you are free to do what ever you want in life. This could be travelling the world, doing volunteer work, changing careers, starting a business, relocating or even retiring early.
How can I achieve Financial Freedom?
Financial Freedom can be achieved in two ways:
- Reduce expenses and
- Increase passive income
Before you start down the journey of Financial Independence make sure you are flexible in your thoughts on how you approach money. If you have an open mind you can learn more.
Keys to Financial Freedom are:
- Taking action. If you don’t take action nothing in life is going to change.
Recommended Passive Income Streams
You either need cash or time to create passive income. There are many ways to achieve Financial Freedom but the ones I am following and recommending are:
- Cash flow positive real estate investments (requires cash)
- Starting your own online business via blogging (requires time)
Is Starting an Online Business Passive Income?
The initial setting up stage of your blog requires plenty of work and time but overtime the income can be passive. A blog can also offer a platform for other passive income opportunities.
Do You Need Cash for Real Estate Investments? (Experts say you don’t need cash)
Experts can do real estate deals without cash but new investors need cash to get started.
“You don’t have to be rich to be happy. You just need to love what you do.” – Neil Patel – Online Entrepreneur.
Good luck to you on your journey to Financial Freedom. If you are new to the site or new to the topic of Financial Freedom then read What is Passive Income here.
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