What financial freedom really means

It's everyone's dream to be financially free. I have lost count of the number of times, financial freedom has been my monthly goal. All I can say is that it is something that is totally achievable. But how do you achieve financial freedom if you don't even know what it really means? Let's get to it.

To grasp the meaning of financial freedom, you should know that there are two types of income.

Types of Income

• Active Income: It is the direct income from your job or business. The salary from your job or the money you make from your business is what is referred to as active income

• Passive Income: This is the income that you make while sleeping or while you are at home relaxing. The money from your investments or the stock you bought. The income that multiplies on its own.

What is Financial Freedom

Financial Freedom is when your passive income exceeds your expenses; When you can afford your lifestyle and still lack money problems.

Do you consider yourself financially free?