Financial Security, Independence or Freedom?
We all have our different reasons for wanting to invest in property, but the end goal is the same. We all want to earn a bigger income.
But there are three different targets you could be aiming for when it comes to your new-found income.
Financial Security vs Financial Independence vs Financial Freedom
This is the amount of money that covers your food, housing costs, cars, travel, and your basic entertainment – that’s good, at least the Jack Daniels is covered!
This means you have accumulated an amount of money so large that you are no longer influenced or controlled by others to sustain a “comfortable” lifestyle. This is where you don’t have to work, and you have broken free of the shackles of trading time for money.
The ability to live the lifestyle you desire (everything you can possibly think of) without having to work or rely on anyone else for money.
- Level 1 – Financial Security – enough passive income to cover your bare essentials such as food, shelter, utility bills, essential expenses such as clothing, insurance, motor maintenance etc. For most people, this figure would be less that £2,000pcm.
- Level 2 – Financial Independence – enough passive income to maintain your current lifestyle. For most people this would be between £2,000pcm-£5,000pcm.
- Level 3 – Financial Freedom – enough passive income to live your dream lifestyle. For most people this would be +£10,000pcm.
Now we know what we are aiming for, try this exercise:
- Draw four columns on a piece of a paper.
- In the first column write the three levels of finance you want to achieve – Security, Independence, Freedom.
- In the second column write how much money you would need to obtain to reach each of the three levels.
- In the third column write how much passive income you have coming in now.
- Work out the difference between the figures in the second and third columns for each level and write this amount in the final column.
This is the target passive income figure you need to work towards.
How Can We Help You?
To help you achieve this passive income figure, watch our FREE webinar! Learn how you can achieve financial freedom from the comfort of your own home AND without having a huge sum of money.
Click here to watch our webinar and find out more.
Back to blog