The Essence of Financial Independence Part 1

Would it be nice to break away from the 9am to 5pm (or 9am to 12am) schedule? How about calling our own work hours? Don’t feel like working and wanna take a few weeks off to meditate or chill out in a beautiful beach in Bahamas?

What if we can do all of the above and money still coming in every month to pay the bills, does it sound too good to be true?

You bet!

This is also why most of the people out there are still running soullessly in the rat race without even knowing it! Being able to escape this modern day slavery in form of an invisible lifetime prison is what financial independence is all about.

First thing first, we are not talking about get-rich-quick scheme or any non-sustainable overnight lotto winners here.

To achieve financial independence, it takes discipline, hard work, and most important of all, the understanding of how to generate passive income, that is, no need to take care of your business or going to work daily and money still flows in on a regular basis.

When your passive income is equal to or exceeds your salary that is supporting your current living standard, hotdog! you have earned the entrance ticket to the world of financial independence.

To get a grasp of how passive income works, let’s get to know our best friend, positive cash flow. Simply put, we want to make money via investment (activity that doesn’t require selling our personal time in exchange for compensation). The math is to stay positive after subtracting all the expenses from the money we made from those passive investment. Regardless of how much the amount, as long as the balance is positive, it serves as the building block of financial independence.

The goal here is to master the arts of identifying market opportunity that can generate positive cash flow when we see one, and leverage the resources around us to turn the opportunity into an asset and group it under our portfolio.

If we repeat this exercise frequently enough, the compound effect will kick in and the magic of financial independence will take shape. By then, we can sit back, relax and enjoy the ride of living on our passive income portfolio.

If you are still in the process of building your passive income portfolio, or just getting started, I hope this is the time to tighten your plan up. Being able to lock down your target and aiming for being free from financial burden, your journey becomes a lot more engaging and rewarding. Let’s celebrate your first step to break out of this modern day slavery and march toward the goal of being free, financially.

   

You may also be interested in the following:

  1. Middle Class Is For Suckers
  2. 3 Simple Rules Behind Explosive Wealth Creation