There are many blogs and websites about “Financial Freedom”. I’ve come to notice that each site author has a slightly different definition of what Financial Freedom really is. So, my goal here is to just lay out in plain sight what my own idea for Financial Freedom is, so I might have a better chance of getting there myself.
My idea of Financial Freedom is the ability to choose to do what you wish with your life, without the need to think about if there is enough money to do what you want. In order to break down what this really means, you’ve got to really understand what money itself is.
Money is basically what makes the world go round.
If you had enough income piling into your bank account to meet your basic necessities, such as food, a place to live and clothes, how would life be different?
Now, you may be saying “but I do have enough money to provide for the necessities.” And you may be correct. But, the real question I want to ask is, “How do you get that money?” Is the income you earn each month Linear (i.e., from working in a job or a self-employed business type setting), or is it non-linear, leveraged, and passive?
My entire goal is to create a lifestyle that does not require my presence.
How beautiful an idea is that?
I however, embrace what I call the “Lazy” approach to Financial Freedom. Note that by “Lazy”, I do not mean the same thing as sloth. Financial Freedom to me means, to take whatever creative ideas you have, find out how to turn it into an income-producing business, and building that business up to a point of profitability. By automating your business processes as much as is possible, you have now created a recurring stream of income that will flow, whether or not you wake up by 6am, or even by noon!
The problem that I see from the employment method is that you have to be at work everyday to keep the income flowing long enough to create investments and such that will eventually create the recurring income streams.
So, what different things can you do to create automatically recurring streams of income?
The key is to create the systems such that they do not require constant meddling on your part.