What does it mean to be financially free? Ask 10 people that question and you might get 10 different answers. This is my answer. You may not agree with it, but that’s OK.
My Definition Of Financial Freedom
Many people equate financial freedom to being rich. This is simply not true. I know many “rich” people who are not financially free. When the NDP government was in power, they considered you rich if you made more than $60,000 a year. The US government considers you rich if you make more than $250,000 a year. The point is being rich is associated with some dollar figure. However, you can be financially free with zero income.
My definition of financial freedom is when your passive income equals your monthly spending requirements. Passive income means money earned without your input. Examples include rent from properties, interest from bonds, dividends from stocks, self running businesses, etc. For example, if your cost of living is $2,000 a month and you have $2,000 of passive income, you are in fact financially free. You can have all the earned income in the world but if none of it comes from a passive source, you’ll never be financially free. A corporate CEO making a $1 million a year and no passive income is not financially free. If he loses his job, he takes a huge lifestyle cut.
It Is Not Hard To Get Financially Free
Think financial freedom is a dream? Think again. It’s really not that hard. How much is your monthly expenses right now? That is how much passive income you need to earn to be financially free. For example, if your monthly expenses are $2,000 a month and you have a $240,000 earning 10% return; you can technically quit your job and live off that 10% since it will make you the same $2,000 a month. However, few of us have $240,000 sitting around to do this so the object is to find other ways of making passive income. This is where the internet comes in. The internet is ideally suited for creating passive income without a huge investment on your part.
I will be the first to admit that my internet income is not 100% passive. Content sites need to be updated fairly often and that requires my input. Mind you that input is still way less than even a part time job. However, I have many website pages that are on “autopilot”. Those pages require no input from me, yet they continued to add to my passive income every month. An example of an autopilot page is the Digital Finder Price Index. This page updates itself every 15 minute and requires no human input what-so-ever. It just sits on the net and makes money – 100% pure passive income.
To Get Truly Rich, You Must Become Financially Free
In order for you to get truly rich, you must first become financially free. If you’re not financially free, you can never become truly rich. You see, to get truly rich requires a lot of time and effort, and you can’t give this time and effort if you’re stuck to a job 8 hours a day. A job was never designed to make you rich. It was design to make you exist and make the business owner rich. This is not to say you should quit your job. Far from it – you still have to exist. However, while you’re slaving away at work, keep your mind open for opportunities to create passive income. Create enough passive and you can pass out at work and say thank you when you boss say “You’re fired!”
Remember, To Get Rich Is Glorious! 🙂