Health and Wealth

What is financial freedom?

Financial freedom basically consists of having enough money meant to cover all your needs in a certain period of time, without depending exclusively on a salary.

The concept of financial freedom refers above all to the feeling of not being tied to a job, simply because you need the money your boss pays you to be able to live.

It could be said that people who have achieved financial freedom have been able to  because they have managed to save and generate a series of incomes that allow them to have their life as they want.

Here we can already see two basic elements that are essential to obtain financial freedom:

Savings : If you are thinking about how to achieve financial freedom, the first thing you have to do is start saving. If you manage to spend less than what you earn, with the remainder you can build a heritage that will be essential to send your boss for a walk.

Passive income : passive income is those amounts of money that come to you without you having to sell your time. They can be the returns on an investment, the benefits obtained —for example— with an info product, or the copyright that is generated when you sell a book written by you.

The formula for financial freedom, therefore, is based on this relationship: savings + income – fixed expenses necessary for living.
Balance is positive+

Only when the sum of your savings and your income is greater than the amount of money you need to cover all your fixed and variable expenses can you consider yourself financially free.

Do you understand now what financial freedom is?