Quote:
Originally Posted by iamfreelancer
Financial freedom actually occurs when your monthly Passive Income is greater than your month Expenses.....
Simple Formula:-
Passive Income - Expenses = + Balance...
if you have a negative balance... then you are not just there yet....
by the way ... passive income is the income that come to u while you are still sleeping.....
If your financial freedom is running on $$$$ reserved then you will need hell lot of it to sustain life till the 6 feet hole calls upon you.....
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iamfreelancer ... you nailed it right on the head ... totally agree with you.
Passive Income - Expenses = + Balance...
But I like to refine it a lil bit, if you don't mind
[(active income + passive income)- expense ]monthly (or yearly) > safety net
safety net is what kind of money to comfortable to live without worry of shit happen.
could be rm 0 for those happy go lucky or rm10,000 or rm 100,000
from the equation one way to achieve financial independent is to reduce expense.
Beyond Comprehension