Financial freedom, not about how much you earn.

What is the key factor to achieving financial freedom? Does it mean we are nearer to the goal when we earn more?

90% of the people ( especially generation nowadays) does not know this, but earning a higher income does not mean you are now closer to financial freedom.

In fact, more people tend to spend much more when they have a higher income, and a higher chance to be in debt. As they earn more , they feel the need to improve their life as they worked so hard for it. Buying luxury home, luxury cars and shop a lot more luxury items be it cosmetics,clothes, or entertainment stuffs. There are quite a high amount of people that earns a high income owes the bank more than those who does not earn a high income.

Financial freedom is nothing but a murky concept. It can be different for everyone. Some could feel they achieved financial freedom when they earned 100k while some aim for 1million. Truth is, financial freedom is not a number to achieve, but a lifestyle to aim for, that you could have enough income to maintain your current lifestyle without compromising it even you stopped working. The money is passive and will be in your account every month without you working.

It is a custom, a habit, that we should always make sure that we save up, spend more on assets instead of liabilities and must not spend more than we earn. Maintaining a positive cash flow with no large debts.

When your passive income is more than your monthly spending, you are moving forward towards financial freedom. And that is really awesome. You are probably in the special, extincting 5% of the world population if you can do this. (which are the rich man population.)

Everyone have to understand that to achieve financial freedom, it is not to work hard to increase our active income ( salary) but to alter our system of spending and saving. We have to make up the right mind and idea to start moving towards financial freedom. Invest more on assets and not liabilities.
Invest on the idea of investing and not spending.

Happy learning and be awesome together!

W.