Is Financial Freedom just a dream?

Posted on May 21, 2008. Filed under: Financial Freedom |

No one likes to devote their whole life trying to make a living. Stuck working in a job that they would not want to do if given a choice, missing time with family, and/or with absolutely no flexibility to do what they want to do.

Surely I don’t.

That’s why we often see many valuable articles showing ways to achieve financial freedom. Financial freedom goal, might sound too far to reach at times but the path there surely isn’t a mystery. I believe it can be achieved with certain proven formulas and steps. Good news is, whatever our family background or education level doesn’t play a part.

Almost everyone who starts his or her own journey to financial freedom begins with earned income, i.e. employment salary. However, relying solely on earned income often can’t bring us far no matter how hard we work and how well we can save. The path to financial freedom requires the change from relying on earned income, to passive income.  I did post an animated clip to illustrate the difference between earning an employment income and building a passive income.

Passive income is our key to financial freedom. Passive income are payments that we receive from the assets we have created. The more passive income we generate, the less dependent we are on our job. At one point, when our passive income exceeds our expenses, we can stop working anytime we want and still live the lifestyle we desire. That is financial freedom.

But passive income takes time to build. We can’t expect to start working on it now and be financially-free next year unless we are extremely lucky. Hence, the earlier we start working to build our passive income, the sooner we will reap the results. Take an example of the business I am in now – Unit trust consultant. I see many successful agents enjoying 5 digit passive income per month, and many of them are of my age or younger than I am. Are they a lot smarter or better than I am? Well, I am sure some of them are :). But most of the time, it merely due to the fact that they started in this business 10 years earlier than I had.

Becoming financially free is no an easy task. To become financially free, multiple streams of income need to be created. These streams of income take hard work and time to setup. There is no easy way of becoming financially free (that’s why I find it hard to believe articles that bear title “Simple Steps to achieve financial freedom”), and surely no shortcuts available. If we ever want to start working out the path of financial freedom, start by gaining knowledge on the many different ways where passive income can be created. Learn how to use our money to make more money. Learn about the wonders of compound interest. Learn the cost of procrastination if you have the vision but don’t plan to start your dream anytime sooner.

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2 Responses to “Is Financial Freedom just a dream?”

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Financial freedom is not just a dream. We can realise it if we know what we’re doing, and of course not by just ‘sitting below the table’. Do whatever you want to do…and be focus.

Olie,

Welcome to my blog and you have pointed out a keyword – “stay focus”


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