How important is financial freedom to a person?

「? This is? Code farmers talk about money? First one? 4? An article? 」

What is the financial freedom of migrant workers?

The rent is about 2k per month, the mortgage is about 3K per month, and the food and clothing are passable. Speaking in front of relatives, friends and even colleagues also carries some weight. ...

Simply put, it is almost both material and spiritual.

But is this really financial freedom?

I'm afraid not.

Financial freedom refers to the state that people don't have to work hard to make money for living expenses.

Income can be divided into active income and passive income.

Active income is the income earned by punching in and out of the company from nine to five every day and selling one's energy (and soul). If a person stops working, he will immediately lose his source of income.

Passive income refers to the income that can be obtained without going to the designated place at the designated time. In layman's terms, it is the money that can be earned by lying down-the income after sleeping.

For example: the income from stock investment, the income from opening a shop as a boss, the income from copyright and patents, the rent for renting a house to others, etc.

Calculation formula of financial freedom: passive income? ≥? Daily expenses.

The passive income generated by a person's assets must at least equal or exceed his daily expenses.

If you spend 1000 yuan a month and you can get10/0/yuan of passive income without any effort, then you have achieved this enviable financial freedom.

As long as there is no catastrophe, you can live without working.

Of course, if you like your job, you can continue to do it, or you can choose what you really like to do, instead of doing things that you are unwilling but helpless because of life.

Gao said: Life is not only about the present, but also about poetry and distance.

I've always liked this sentence. The work, life and daily bills we are facing now are just getting by.

But who can do it without caring about the present, or without considering the present?

People who have achieved financial freedom, and people who don't care about money.

One is to live hard to realize what you want, and the other is to look down on worldly fame and fortune from the beginning.

Therefore, we must understand that without financial freedom, there will be no poetry and distance, no life, living elsewhere, and you only deserve to survive.

With financial freedom, poetry and distance are meaningful.

Especially when you are tired of endless overtime and calling early in the morning to urge tasks, you can quit your job in a rage and go out with your luggage.

When you have seen enough, you will still have money to buy a plane ticket, instead of being exploited by the company, only Nuo Nuo, because you are full of confidence.

How important financial freedom is to a person is also relative.

Previously, Hurun said that it would take 290 million yuan to achieve financial freedom in first-tier cities such as Beishangguangshen and Shenzhen, and 65.438+0.7 billion yuan to achieve financial freedom in second-tier cities such as Hangzhou, Nanjing and Chengdu.

This standard is a bit too high.

There are no absolute indicators of financial freedom, such as how many assets must be achieved or what kind of living standard must be maintained.

As long as the future expenditure target and the existing investable net assets meet the formula listed above, financial freedom will be realized.

Different people have different wealth bases and earning speeds, and the living standards required to achieve financial freedom are also different.

Financial freedom is a realization of self-goal, not to meet the requirements of others or society.

Just like some people have lower requirements and lower living costs, they think that a monthly living allowance of 5,000 yuan is enough, while others think that a monthly income of 50,000 yuan may not be enough to support their families.

Financial freedom has nothing to do with whether you are young or how much money you have.

If you can earn enough money from other ways besides work to pay your daily expenses, you will be financially free.

The reason why "financial freedom" is put forward is to regard it as an ultimate goal of investment and financial management.

What is a person investing in financial management for?

In the commercial society, economic conditions are the biggest constraint on individual freedom, which is like the gravity of the earth, and no one can get rid of it.

The goal of pursuing financial freedom is to minimize this financial "binding force" and seek the greatest freedom of individual body and mind.

It is almost impossible for an ordinary person to be Buffett, but it is still possible to be financially free.

It is impossible to achieve financial freedom for a lifetime only by positive income.

The ultimate source of passive income is personal growth and financial management ability.

How much do we ordinary people need to be financially free?

Here is an empirical formula for everyone:

Financial free funds =( 100- age) * 12 * monthly consumption amount.

Suppose a 30-year-old family spends 20,000 yuan a month, then the amount he realizes financial freedom is 6,543,800+0,680. If you save 4% of the annualized income of Yu 'ebao, you need to save 6 million yuan and earn 20,000 yuan a month.

Of course, if you are 40 years old and live an ordinary life in a small city and spend 1000 RMB per month, you only need 720,000 RMB. The balance treasure is only 300 thousand.

Has your monthly income reached the standard of wealth and freedom? If not, come and invest in funds/stocks with me and enjoy the miracle of time+compound interest!

The backstage reply fund can consult me for free.

King, a post-90 s programmer, likes to study investment and financial management.