Financial freedom? What is financial freedom exactly? Financial freedom is having enough or even more of your financial resources, which you could use to pay all your living expenses and afford the many goals you have listed on your bucket list. Sound fun, right? It is your independence wherein you are not obliged to work, have no responsibilities, and work hard or any other commitment of time or effort to generate income. Freedom, music to your ears, and happiness to your heart. But where do resources come from?
Resources can be one or both of Independent Income or Abundant Assets. Independent Income comes from your business, benefits from any government agency, or any other regular payments or sources that do not require time to work. An example is social security benefits, which usually arrive once a month.
Another example is your business, where you can pull back managing your day-to-day expenses. Lastly, rental payments from any property can be your independent income. Although this may sound risky since it needs management skills and maintenance, rentals are still income.
Another resource is your abundant assets. This includes securities, investments, bank accounts, and valuable properties. To use these assets, you need to invest; usually, a large amount of money is necessary, resulting in a large amount of benefit in return. It also requires patience. An example is when you invest in financial plans. That is why investing at an earlier age rather than upon retirement is better. It is an advantage and will surely give higher interest value, making resources abundant.
Assets used in achieving financial freedom may result in potential problems. It should be taken seriously and balanced effectively. It will sound risky, but doing it properly is free.
