What is financial freedom?

_{What is financial freedom?}

  _{Financial freedom means different things to different people, but to me, it means "the ability to do what I want to do, not what I want to do".}

  _{In other words, even if I never work one day again in my life, if I can pay all my bills and meet the basic and essential needs of my life, I feel like I have achieved financial freedom.}

  _{There are basically two types of funding sources:}

  _{Active Source:}

   _{When you work for a fixed period of time, and you are paid compensation for it. Routine work involves doing anything. It's an instant source of money for anyone.}

  _{But the problem with this source is that you will not get money if you do not work. And maybe a person will not work for the rest of his life.}

  _{Passive Source:}

 _{Passive source of money that you earn without working or with little effort. This includes your fixed deposits, dividends from stocks, real estate, and mutual funds.}

  _{A decent amount can be obtained from this source with time and regular investment.}

 _{To achieve financial independence, the following factors must be taken into account:}

 _{Wealth creation:}

  _{Focus on asset building. Asset means the value in terms of money increases over time. Such as investing in real estate, investing in mutual funds, and investing in some good stocks.}

 _{Reduce liabilities:}

  _{Liabilities are things that depreciate over time. This includes buying expensive cars, watches, etc. just for the looks. Having a superior lifestyle etc.}

  _{Learn about need and desire:}

  _{Must know the difference between the two. These days, people do things they don’t need right now.}

 _{Your life does not go on unnecessarily, you need to eat clothes, food. As much as you want to buy an extra watch on sale, the desire is that you can live without it.}

   _{Know the definition of cost:}

  _{Your definition of cost is income-savings / investment = cost. That means you spend the rest of the money after the investment.}

  _{Read! Reading !! Read:}

   _{Read as much as you can about financial literacy. It changes the way you think about money.}

  _{By following these steps along with regular investments, you can build a respectable corpus to be financially independent.}

  _{You should look for things that interest you to become financially free and try your luck in business. Start small, but make sure you have an idea that you can scale.}

  _{Make sure the money you earn in the beginning is invested to grow your business or buy a property that will add value over time.}

  _{Investing in assets at the age of 25-30, thanks to the compounding principle, can go a long way in achieving your goals faster.}

  _{Do not put all your eggs in one basket, switch to stocks, real estate, gold, other businesses, etc. which will reduce the risk.}

  _{Planning in an Excel sheet and setting milestones to reach your goal is a very important thing. It gives you great clarity on how you can reach a certain net worth and how much you should save at each milestone.}

  _{No matter how you feel about it, money moves the world. Financial independence can help you achieve your goals and live the life you want.}

   _{On the other hand, if you are  in your financial situation, there are a lot of things that are not possible due to money.}

     _{I hope this helps}