Financial freedom refers to the state that you don't have to work hard to make money for living expenses. Simply put, the passive income generated by assets must at least equal or exceed the daily expenses.

Financial freedom only applies to a small number of people. If most people try to achieve financial freedom, then the system will inevitably collapse. According to this theory, the passive income that financial freedom depends on comes from the active income of others.

Extended data:

Realize the principle of freedom: create assets, reduce liabilities and manage daily expenses.

Passive income source, realizing financial freedom;

1. Royalties, unconditional basic income, dividends or fund dividends, bank time deposits and monthly income plans, book writing, photography, music and painting creation, and patent fees for leased property.

2. Advertising revenue of blogs or websites, pensions, rental professional qualifications or academic qualifications.

Renting a house is the most common channel for people to achieve financial freedom, but it is also the most expensive way. The advantage is that once the property is available for rent, it can generate passive income, usually high-quality assets that generate cash flow for a long time.

It is usually best to have full ownership of the property, because financial freedom can be maintained during the empty lease period, and there is no pressure of mortgage loan.

Baidu encyclopedia-financial freedom