What is financial freedom? Financial freedom is having enough residual income to cover your living expenses. It is not about being rich and having tons of money, but having enough to cover your expenses so that you can spend your precious time doing what you like rather than doing things just to earn money.
How do you get financial freedom?
- Understand where you currently stand. Be honest.
- Look at Money Positively. It is a tool.
- Write Down Your Goals.
- Track Your Spending.
- Pay Yourself First.
- Budget 10% donations. You reap what you sow.
- Spend Less.
- Buy Experiences Not Things.
- Pay Off Debt.
What is time freedom? Time freedom means having the time to move deliberately through life. It also means you can spend your time doing more remarkable, meaningful things. Often things that have nothing to do with money but enrich the quality of your life.
What does the 30 day rule got to do with it? Here’s how it works: Instead of making an unplanned impulse purchase, you instead shelf that potential purchase for 30 days and deposit the money into your savings account instead. If you still want to buy that item after the 30 day period is up, go for it. Otherwise, the money stays in your savings account. Definitely a great way to get to financial freedom.
How is financial freedom number calculated?Take the sum of all of the transactions you have made in the past 12 months and divide it by 12. Assuming no drastic life changes, this is your average monthly spending, otherwise known as your freedom number. Once your passive income surpasses this amount, you are free!