Financial Freedom
A lot of people want to achieve it, not many people get to truly reach it.
Yet a lot of people dream about it.
Well, for one, this is a goal where i am aiming to reach. by the time i turn 45 years old, which is in year 2027 that is.
Financial Freedom is defined as being able to provide for yourself and your family financially, without having to work for it.
Drilling deeper, it essentially means having passive income inflows that can cover your expenses outflow.
Which then leads one to ask for the difference between active income and passive income.
1) Active income is income inflows where you have to "actively" work for it, ie, exchange your time/effort/resources/talents/skills in exchange for income.
2) Passive income is income inflows where you do not have to "actively" work for it, where the income flows in "passively".
Examples of passive income inflows can be:
- rental income
- business income
- interest payments
- dividend payments
- annuities
- etc
You also have to create multiple sources of income.
First, create multiple sources of active income, then convert them into multiple sources of passive income.
Until the day where your passive income inflows equals/exceeds your expenses outflows, then you, my friend, has truly become financially independent, and achieved financial freedom.
You then do not have to work to live.
You get to choose if you want to continue working, it's your choice basically. haha.
Well. When that day comes, i will hopefully lay back and relax, and continue doing what i enjoy doing (training, facilitation and public speaking), and stop doing all others which i dread (eg. admin duties).
Till the day i achieve financial freedom!
#iWish
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