Thursday, June 4, 2009

Financial Freedom

Most people have the perception that if a person achieves financial freedom, he/she then will live in the lap of luxury. And for that reason, it is very difficult to achieve financial freedom. I thought so too, until I read Dr. Van Tharp's book on financial freedom.

His definition of financial freedom is just your passive income is enough to cover your daily expenses and your lifestyle. If you lead a frugal life that does not need a lot of money to support, then it is easier for you to achieve financial freedom.

For example, if a person only needs $100 to survive for a month, isn't it obvious that he only needs to find a passive income that gives him at least $100 a month? Comparing with someone who needs $10,000 to survive for a month, don't you think it is much easier for the $100 guy to achieve financial freedom than the $10,000 guy?

Life is full of choices, financial freedom is also a matter of choice. I constantly remind myself that my goal is to achieve financial freedom, not living in a lap of luxury. You don't need a well-paid job to survive. A job you don't like will only tie you down, make you unhappy everyday. If you can step back, there may be a much great world awaiting you, a much happier life waiting right there for you. Keeping your current job may not be everything, losing your current job does not mean you lose everything either. It may only mean one door is slammed right in your face, while many doors are wide-open for you.

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