What is Financial Freedom
What do you imagine of being financial independence? Never work again, living in big bungalow with private pool, travel around the world where ever it is and whenever you like to?
There are many interpretation of financial independence, to me, Financial freedom has more to do with liberty from monetary worries. Someone who earns RM 12,000 a year can achieve financial independence as easily as a person who earns 40 times higher. It’s all a matter of perspective.
Any one can achieve financial independence if you are clear with what you want in life and type of life style.
To be qualified as financial freedom, first thing you need to have is no bad debt, such as no mortgage on your staying house( you can have mortgage loan on property if the property is generating cash flow to cover for the mortgage installment), no car loan, no credit card loan and personal loan and you have passive income every month to support for your living expenses, your child expenses, medical insurance, life insurance premium and reasonable sum of money to let you continue to enjoy things you are passion with such as your hobby, sport and recreation.
Finally, you have plenty of time to choose things you like to do, to pursue your hobby without feeling the pressure of no income to pay for the bill. You live a life of fulfillment, with a minimum of stress. Sound great, yap, being financial freedom is at a mean of all human being if you clear with the stages of life financial and you drive your life financial diligently, so let's move on to the next section of stages of life financial.
