What is financial freedom?

What is the financial freedom that young people yearn for? What does financial freedom really mean?

To achieve financial freedom, we must first understand what financial freedom means? If we simply understand financial freedom as a person or family having enough financial ability to support your life consumption, then it can be said that when you do not work and still have enough financial ability to meet the needs of life, then you Achieved financial freedom.

In other words, people with financial freedom can have the courage and ability to "not bend down for five buckets of rice". Fundamentally, you have the ability not to bend your waist for five buckets of rice, and you can leave with your crown in style. . It is difficult for others to understand: "I spend my days singing wild songs, who is the hero when I am so domineering?"

There are two conditions here: The first condition is that work income is not the main source of income. If the source of work income is The main condition is not considered financial freedom; the second condition is to be able to meet life needs without working. Although everyone has different understandings and needs for life, there is still a basic measurement standard overall. According to the financial freedom standards of a certain research institute, the standard threshold for wealth freedom in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen is 290 million yuan. , second-tier cities are 170 million.

This standard of financial freedom is undoubtedly relatively high, but for ordinary people, it is not actually the case. If we understand financial freedom in a popular way, it can be summarized into two points:

The first point is that work is no longer a means and way to ensure life and obtain financial resources, that is, work is no longer a means to make a living. .

The second point is that under no circumstances should you worry about life or have enough money to do what you really want and are willing to do, and only pay for your own interests and hobbies.

02 Can financial freedom be achieved through financial management? It's definitely impossible.

Many people want to know what kind of financial management methods can achieve financial freedom?

The conclusion of the facts is very cruel. No financial management method can achieve financial freedom.

First of all, the basis of financial freedom is to have enough assets and property, which cannot be achieved by any kind of financial management method.

The basis of financial freedom is not to rely on salary income. lifestyle and source of income, then sufficient wealth is a necessary prerequisite. To achieve financial freedom you must have enough wealth.

Whether a certain institute’s wealth standard for financial freedom is 290 million yuan or 170 million yuan, or 100 million yuan, or even 50 million yuan, it cannot be achieved through financial management.

Financial freedom is achieved through inheritance, investment and earning. No one has heard that it is achieved through financial management

Secondly, any financial management method is to balance current and future income. expenses, but cannot make huge profits through financial management

The core of financial planning is to balance the comprehensive balance of current and future income and expenditure through financial management, based on the current income situation and expenditure needs, and through reasonable and legal Use financial instruments and effectively allocate assets to achieve as much return as possible with controllable risks. Through financial management, we can establish an independent, safe and free financial life system for the family, and ultimately achieve the financial management goals of each stage of personal life/family. and dreams!

A few points should be made clear here:

First, financial management can only balance the current income and expenditure, but cannot earn more wealth;

Second, financial management It is to balance future income and expenditure, but not to achieve huge profits;

Third, financial management is to strive for as much income as possible through the allocation of financial instruments and assets, and financial management can obtain income;

Fourth, financial management is to achieve certain personal and family financial management goals and dreams at a certain stage, and cannot realize the dream of sudden wealth.

Any financial management method is a process of accumulating wealth. Although financial management can make people's lives better, it is not a way for people to become rich.

Some people hope that by managing money they can live a happy life without going to work. This is a wrong concept and lifestyle.

People often ask, how to achieve an income of more than 20,000 yuan per month through financial management, and live a happy life by relying on financial management income without going to work? In fact, this is a smaller version of financial freedom, and you must have sufficient funds.

At the same time, there are some misconceptions. Some people hope that they can support their families or even invest through various investment methods such as financial management, investing in the stock market, gold, futures, real estate, etc. when they don’t have much money or savings. Make a lot of money and get rich. Reality will crush this dream.

03. Another key to financial freedom is passive income. How to clarify the five major issues in family financial planning?

If financial freedom is expressed by a formula, it can be simply summed up as: Financial freedom = passive income>living expenses

Passive income mainly refers to income other than work, or Income that can be earned without working.

Of course, the core of passive income is having huge property and wealth. But for ordinary families, if they cannot achieve financial freedom through financial management, what is the point of financial management? Of course there is.

Financial management is not only an effective means for ordinary people to complete the initial accumulation of wealth, but also the first step in wealth accumulation that you cannot avoid. The core of financial management is how to formulate family financial planning strategies?

First, clarify the basic goals of family financial management, which is the most basic family financial planning goal. Financial management is not just about saving money, but it must include how to save money. Want to know how much money your family needs for daily living? This issue is different for every family, but there must be a basic financial goal.

The second is to consider how to improve your own future development in family financial planning? The so-called future development ultimately refers to the sustainable earning capacity of future families, and how to further improve the three aspects of salary income + specialty income + investment income. This is a problem that must be solved in family financial management.

Third, children’s education and investment issues must be clarified in family financial planning. This is an indispensable future investment for the family.

Some organizations have calculated that the investment in children’s education alone will cost at least 372,600 yuan from kindergarten to university. If various training courses and other expenses are added, some organizations estimate that it will cost 1 million yuan. Children's education is the most important investment need for family financial management.

Fourth, the issue of supporting the elderly must be considered in family financial management. This is also a solution to the moral and moral issues in life. After all, supporting the elderly is a responsibility and obligation that a family must bear.

Fifth, family wealth planning and management must consider the planning and investment issues of having someone to depend on, provide for oneself, and have fun in old age, so as to avoid burdening children

The above five basic needs are the most basic goals of the most realistic family financial planning. As for achieving financial freedom, it is elusive for most people. What is the financial freedom that young people yearn for? What does financial freedom really mean?

To achieve financial freedom, we must first understand what financial freedom means?

If we simply understand financial freedom as a person or family having enough financial ability to support your life consumption, then it can be said that when you are not working, you still have enough financial ability to meet your life needs. needs, then you will achieve financial freedom.

Although everyone has different understandings and needs for life, there is still a basic measurement standard. According to the financial freedom standards of a certain research institute, wealth freedom in first-tier cities such as Beijing, Shanghai, Guangzhou and Shenzhen The standard threshold is 290 million yuan in China and 170 million yuan in second-tier cities.

This standard of financial freedom is undoubtedly relatively high, but for ordinary people, it is not actually the case.

If we understand financial freedom in a popular way, it can be summarized into two points:

The first point is that work is no longer a means and way to ensure life and obtain financial resources, that is, Work is no longer a means of making a living.

The second point is that under no circumstances should you worry about life or have enough money to do what you really want and are willing to do, and only pay for your own interests and hobbies.

02 Can financial freedom be achieved through financial management? It's definitely impossible.

Many people want to know what kind of financial management methods can achieve financial freedom?

The conclusion of the facts is very cruel. No financial management method can achieve financial freedom.

First of all, the basis of financial freedom is to have enough assets and property, which cannot be achieved by any kind of financial management method.

The basis of financial freedom is not to rely on salary income. lifestyle and source of income, then sufficient wealth is a necessary prerequisite. To achieve financial freedom, you must have enough wealth.

Financial freedom is achieved through inheritance, investment and earning. No one has heard that it is achieved through financial management.

Secondly, any financial management method is to balance current and future income and expenditure, and cannot make huge profits through financial management.

The core of financial management planning is to target the current income situation and expenditure needs. , balance the comprehensive balance of current and future income and expenditure through financial management, achieve as much return as possible under controllable risks through reasonable and legal use of financial tools and effective allocation of assets, and build an independent family for the family through financial management. , a safe and free financial life system, and ultimately realize financial management goals and dreams at all stages of personal life/family!