Financial Freedom - Set the level of financial freedom that you want to hit
Financial Freedom, when first time I heard it, I really got shocked. We are looking for freedom in our life. We do not want to act like the prisoner, no freedom at all. We want to do what and go where we wanted to, as long as it is following the rules and legally. But I never heard about financial freedom.
Briefly, Financial Freedom is a status in life where your passive income is larger than your expenses. In this way, you really can fire your boss or stop doing all the daily boring works to get income to survive. Passive income and expenses is the terms that you should pay attention here. Passive income is a kind of income that can be generated with a system where you really do not need to worry or fully involve in. In this case, a job is not qualified to be passive income since you need to show your face every early morning in front of your working desk.
The point here is the expenses. Expenses will determine how much you need to be financial free. Different individual with different background will have different level of expenses. The case will be totally different if you have a family and children. So your expenses maybe will cover their expenses and also their future.
Financial Freedom is goal for me. So before financial free, I must know how much I need to be financial free. For my case, I divide my financial freedom to 2 levels. First level is my personal financial freedom which I will gain my personal financial freedom if I can cover my personal expenses. Second level is my financial freedom for my family which I will cover all the expense in my family include my parents expenses, my wife and my children expenses. As I said, different stage in life will have different commitment and you will need different plan for your financial freedom.
Set your level today which will cover how much you need to be financial freedom in each level, what expenses will be covered, what you want to do and etc. Then build a plan to support it. I recommend to non-stop keep growing your investment where you can get passive income.