What is achieving financial freedom?

Achieving financial freedom is not a difficult thing and do not misunderstand the meaning of achieving financial freedom. You do not have to be a millionaire or billionaire to achieve financial freedom. Let me explain easily on how to achieve financial freedom. 

Achieving financial freedom simply means passive income more than expenses. 

What is passive income? Passive income is income such as collecting rental, collecting dividends, collecting director's fees, income that do not require you to physically work or selling your time to make an income. 

Active income on the other hand simply means a fixed job. A job that buys your time and your employer pays you a fixed monthly salary. 

If on the average, you incur a sum of $2,000 for monthly expenses, such as paying off your mortgage loan, car loan, bill / utilities, groceries etc and your passive income is say $3,000 a month, you literally already achieved financial freedom. After less off your expenses, you still have a balance / extra of $1,000 cash to play with without the need to touch the money from your active income. 

Start building your passive income so that you do not have to rely heavily on your active income. A second or third source of income will become your backup in the event if you lose your main source of income. There are plenty of ways to generate passive income and one of the easiest way to start building passive income is by investing in stocks. 

Before starting your journey of building your passive income, build up your knowledge first as mental wealth is more important than money.