What is true financial freedom?

Financial freedom is a concept derived from the concept of “financial freedom” in Western investment and financial management. Financial freedom refers to a state where you do not need to work hard for money to cover your living expenses . Simply put, the passive income generated by your assets should be greater than or equal to your daily expenses. This is the state most of us desire to achieve. If we enter this state, we can call it retirement or other names.

Financial freedom has nothing to do with how young you are or how much money you have. If you can earn enough money to cover your daily expenses from sources other than your job, you are already financially free.

In other words, the real meaning of “financial freedom” cannot rely on salary and bonuses. It is more about an ultimate goal you achieve through investment and financial management. If you achieve the following goals, you will have achieved financial freedom.

1 First of all, you don’t have to work for money

Most people work to “make a living”, that is, to work for themselves or their families, to buy a house and a car, and to maintain a decent life as a “successful person”. Once work stops, the “decent life” will become “indecent”. So most people work for “money”, even if the boss is not happy sometimes, they can only swallow their anger.

If you can work for your interest instead of money, then you have taken an important step towards financial freedom. “Working for fun” is the first step towards financial freedom. Many entrepreneurs who succeeded through entrepreneurship started by “doing what they are interested in”. Bill Gates and Jerry Yang started their entrepreneurship out of interest. At first, they didn’t know that they would get such a large fortune. Money and wealth were just an unexpected gain from working for their interest.

Even Buffett, who is a professional investor, is not directly after “money”. His interest lies in “value discovery”. Because Buffett’s interest is focused on “finding good companies and buying them”, he can read boring numbers and reports day after day for decades, and rarely pays attention to stock prices.

Many of us invest directly for the sake of “money”. Business models and value analysis are not our interests. Their focus is on “stock price = money”. A daily limit makes them high, and a daily limit makes them down. They are completely controlled by the price curve that represents “money”. Even when investing, they “work for money”. But in the end, you will find that they are getting further and further away from “money”.

2 The second is to maintain the net cash inflow of property income

In addition to salary income, property income is a very important indicator of achieving financial freedom, which means ensuring that there is net cash inflow even when not working.