Financial freedom is a concept that has often been discussed in recent years. What exactly is financial freedom? Financial freedom is the state of not having to work hard to earn a living. Financial freedom can be achieved as long as you have continuous, stable passive income which equals to or more than your living expenses.
How to start creating passive income?
1. Develop Multiple Sources of Income
You can utilize your professional skills, interests or hobbies to build a sustainable business or personal brand, which can generate stable and passive income. By starting from your own interests, you can be more involved and enjoy the process.
For example, if you like makeup and beauty, you may import some cosmetics/ skincare products and sell them online. You may also build social platforms such as YouTube/Instagram to share beauty content, and earn passive income through traffic, advertising, endorsement or cooperating with manufacturers to promote products.
2. Manage Expenses
To achieve financial freedom, cutting unnecessary expenses is essential. You can use personal accounting apps to jot down all expenses. Regularly review what's unnecessary, and then make adjustments. Regularly review what's unnecessary, and then make adjustments.
By developing this habit, you would be able to calculate your average monthly expenses, and determine the amount of passive income you need each month to achieve financial freedom. Then, you can set clearer goals.
3. Invest in Assets
In order to achieve financial freedom, some people mistake speculation for investment. For example, buying investment products that they cannot bear the risk of, or easily trusting others and investing in areas that they are not familiar with. The losses may outweigh the gains.
Therefore, you must first evaluate your own funds and risk tolerance level before choosing investment products. Investing in assets like dividend stocks/ funds, properties with stable rental income, or small businesses with growth potential are all ways to generate passive income. Always remember to do more research before making any investment decisions.
Komentarze