How to be financially free

Financial freedom can be said to be the dream of all people.

What is financial freedom?

Financial freedom generally means having enough savings, investments and cash on hand to afford the lifestyle we want for ourselves and our families and a growing nest egg that will allow us to retire or pursue the career we want without being driven by earning a certain amount each year.

The above is the answer given by google.

So how do I understand financial freedom?

From now on, we are not working, and we can still guarantee that the quality of life in the family will not decline.

The cost of living at the moment includes medical care, education (children), travel, and daily expenses.

Sounds very attractive.

how do you do that? Synchronize several concepts before telling how to do it.

Income model

Our income can be roughly divided into two modes:

  • Active income
  • Passive income

What is active income and passive income?

Active income refers to income received from performing a service. This includes wages, tips, salaries, commissions and income from businesses in which there is material participation.

Passive income is money earned with minimal activity through a variety of ventures which require little daily effort or upkeep on the individual’s part.

We already know the concept of active income and passive income. But for most of us, we only have active income and cannot make us Financial freedom.


So how do we achieve financial freedom?

In addition to doing your own active income work. Build your income ecology, that is, build your passive income.

Usually passive income is also dubbed “sleeping income”.

There are many kinds of passive income.

  • Real estate
  • Property rent
  • Intellectual copyright
  • Stock/option
  • Investment
  • Insurance
  • Interest
  • ……


It is a “defensive protection” that I think is a must for every family.

Be prepared for yourself and your family as soon as possible.


Stocks/options, I think it is also a must-have option, investing 20%-30% of household income every year to invest in some valuable companies, such as google, Amazon.

Intellectual copyright

Intellectual property, if you have the ability, this is a very good choice. It usually has a more optimistic income at the beginning, although time decays.

Real estate/Property rent

Consider buying a property in some tourist cities, such as Tokyo; then, operating on the Airbnb platform.


Interest income, not recommended. This usually does not offset inflation.


By constructing a set of passive income ecosystems through the above means, you can achieve a free life.

Of course, the greatest passive income is “money breeds money”.

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