What is Financial independence

Financial independence is also called financial freedom. It means the level of  wealth  of a person which gives him or her the per month passive income without doing job, self-employment or doing any work next whole life. 

Anyone can get the financial independence if he has the written dream of net worth amount and then he converted it into Goal and he has written the plan and written budget and he takes action on it every day for achieving it. 

After goal, financial planning is the best way to achieve the financial independence to focus on collection of assets.

You have to invest in  following assets which gives you passive income

1. You have to invest in stock market, which gives you dividend

2. You have to invest in bonds and debentures which gives you interest

3. You to invest your time for new inventions and getting patent for your inventions and other inventions and earn passive through patent licensing

4. You have to invest your time for writing and publishing books and ebook and getting copyright from authors for getting royalty from it. 

5. You have to invest in MIS, bank FD and bank RD for getting interest

6. You have to invest in pension schemes like Atal pension yojna  for getting per month pension. 

7. You have to write contents to your own website for getting passive ads money. 

8.  You have to creative work like video creation and get ads money from it. 

9. You have to start your big business and you give its control to your employee and never do active work and earn from its profit.

10. You have real estate for getting passive rent income. 

11. Re-invest your Earning from above 10 and get the benefit of Compound Interest for your financial freedom and retire early (FIRE)

12. Catch new and new opportunity to catch your active income source and invest your this capital in assets. 

If you have private job, self-employment job or govt. job and you are earning very small amount like Rs. 10,000 or Rs. 60,000 or more you can also get financial freedom by saving and investing very small amount regular for long time. For this, you have to control on your all wants  and for long time, you have to fulfill only your needs. 

If a person has earning Rs. 90,000 from his self employment but he is paying interest on loan and paying personal expenses and no per month saving and investment, he will not get financial independence. 

Conclusion 

1. If your per month expenses for living your life and your family life happy is Rs. 20,000 and you are getting Rs. 25,000 from dividend, royalty, interest, rent and patent fees and other passive incomes, you are financial free.
2. If your per month expenses for living your life and your family life happy is Rs. 200,000 and you are getting Rs. 20,000 from dividend, royalty, interest, rent and patent fees and other passive incomes, you are not financial free. Rest you are getting from salary income.  Yes, you are struggling to get financial freedom but you have to do more struggle by adopting your life style more simple to reduce your expenses and invest more in assets. 

Learn Also 

• How to Start Financial Freedom
• 10 Benefits of Financial Freedom
• Financial Security vs Financial Freedom
• How to Teach Businessman About Financial Freedom in India