Creating wealth and creating money in amounts ever increasing is always on the mind of a segment of society. The American economy is going through some changes as of late but at the same time creating wealth is no less in the forefront of many American minds.
I thought it would be good to share what I’ve learned about financial freedom and creating wealth. First off creating wealth is more a custom idea for the person who defines wealth in their own way. I’m not getting into that here. I will say wealth is an inside job, that has been my experience.
What is financial freedom?
Here is a simple definition of financial freedom that is easy to understand.
Financial freedom is passive income meeting or exceeding your expenses.
Listen, if your a financial guru, don’t go saying I’m wrong. I’m going somewhere with this.
So if financial freedom is passive income meeting your expenses and your expenses don’t change and your income doesn’t change, then you can do whatever you wish, unless it cost more than you have allotted for expenses.
How can the average person create financial freedom?
The same way everybody else does it: Convert earned income into passive income.
Creating wealth in theory is simple. Financial freedom is simple. Finding a income vehicle that will allow you to take your earned income into passive income and create wealth and a lifestyle you crave is difficult.