How to Achieve Financial Freedom

financial freedom is definitely not a myth. Although it remains as a dream for most people who are still struggling and running in their own rat race, financial freedom is just a state when some numbers are met. The good news is that every one of us has different set of numbers to meet.
It is commonly known that when the passive income is more than enough to cover the required expenses, you are financially free. Based on this formula alone, it is enough to show that FF can be achieved in many different ways.

Passive income > expenses

You can either reduce your expenses or increase your passive income. The problem is most of us can’t compromise on a lower spending.
If you sell all your stuff such as house, vehicles and all other belongings, you are almost financially free if you are a single working adult. Move to a place where everything is still cheap, and you are okay to live cheap and stay cheap, you got your financial freedom almost instantly.
Look at the formula again. On the other hand, it seems more fun to have a high passive income level that enables you to afford a more luxurious lifestyle. Isn’t that most people are chasing after in their rat race?
Besides measuring FF with your passive income, which most people don’t have, you can also measure FF in terms of “time”. The formula works this way – calculate how much money you had accumulated, and divide it by the monthly required expenses to sustain your lifestyle.
That number represents how many months you can survive without additional inflow of money. If you are 50 years old and you spend RM1000 a month, you only need RM360,000 to achieve FF assuming you will live up to 80 years old.
So even if you do nothing to increase passive income, you can still accumulate enough money to stop working.
But most people are simply lost in the rat race of chasing after FF dreams. Some people want to be able to stop working on their boring jobs. They thought that financial freedom is the only way out.
Let me ask you this question – why do you want to achieve FF?
So that you can stop working?
So that you can have enough money to spend?
So that you can travel the world?
The ultimate answer I can think of is that you want to do whatever you want without worrying about money, right?
So can I conclude that what you actually want is the freedom of time and location, more than money? You want time freedom and location freedom rather than financial freedom, am I right? Money is just a way to get you there.