What is financial freedom? 什么是财务自由？To what extent one can be called financially free?
Financial freedom, is a term misused by lots of writers / talkers, and misunderstood by lots of people. Some people believe it is financial independence, while more people equal it to being rich. Both perceptions are wrong.
Financial freedom is a state that a person can live freely without having to work, without work income, depends only on his wealth, or passive income, or both.
According to IRS definition, passive income is rent, dividend, interest, patent fee, or royalty fee. The reason it is called passive is that one doesn’t have to work actively and incomes arrive passively.
There are two forms of working: one is working for other people, i.e., employed; the other is working for oneself, i.e., self-employed.
Lots of people are financially independent but don’t have financial freedom yet, because they have to work and their only income is work income, or active income.
Financial freedom neither means being rich. Getting financial freedom does not mean getting rich. One does not have to be rich to be called financially free. Of course, rich people are financially free.
As long as a person’s passive income or wealth can support his expense for the rest of his life, he is financially free.
Financial Freedom = (passive income >= expense)
From the equation above we can see, two approaches existed to achieve financial freedom: one is from income side, increasing passive income; the other is from expense side, decreasing expense.
Requirement on both income and expense sides are pretty flexible. One can live under means, move to low expense area such as Myrtle Beach, thus lower the income requirement. On the other hand, one can increase income and have a higher living standard.
Hence, there is no absolute number for how much money a person must have to be financially free. Some can live on $50K a year, while typical middle class’s annual income is $100K.
Assuming $100,00 per year, and 5% return on investment, then the net capital will have to be $2mm (2 million US dollars). $2mm investment * 5% ROI = $100K income. For middle class living standard, financial freedom requires $2mm asset.
It is not cash, it is asset. Cash will devalue while asset may appreciate or generate income. Asset is the money invested, on rental property, stock, bond, foreign currency, virtual currency such as Bitcoin, collectible such as art, gold / silver, early stage investment, etc.
Generally speaking, in America, net asset two million dollars is the number for financial freedom, while five million dollars is the line for being rich.
Financial freedom is a step between middle class and riches, a milestone on the road to becoming rich.
To be financially free, you either make a lot of money by whatever means, or generate enough passive income to cover all expense, through investment.
什么是财务自由？很多人有误解，要么以为是财务独立，要么跟发财划等号。
财务自由指的是不用工作，还可以活得好好的，最好是保持原先的生活水平。
一个人如果有很多钱，他当然可以坐吃山空，不工作。这个大家都理解。今天我们谈的不是这个。
今天我们谈的是，不工作了，钱从哪里来。它不是从存款来，不是坐吃山空。它应该是可持续的。一个人应该有收入，来支付所有开销。但是这个收入不是工资，不是工作的收入，否则就不叫财务自由。
很多人只有工作收入，不工作就没收入。他们到这里就卡壳了。
有的人有工作外的收入，比如版权费，专利费，租金，股息，分红。这种收入，按照国税局的定义，叫做被动收入。这种收入不需要去主动工作，就可以获得。
当一个人的被动收入足够他的开销的时候，他就财务自由了。如果他愿意，他可以辞掉工作，退休到美特尔海滩，天天在海滩上晒太阳。
财务自由 = （被动收入 >= 开销）
从上面这个方程式可以看出，实现财务自由有两条途径：一是从公式左边入手，增加被动收入；二是从公式右边入手，减少支出，降低生活水平，换小一点的房子，或搬到生活费低一点的地方比如说美特尔海滩。
那么要多少收入才够？有没有一个具体的数目？
按照上面的公式，收入其实是很灵活的，没有硬性规定。有的人一年五万也可以过得不错。有的地方没有二十万不行。公认的中产阶级的收入标准是十万年薪。
假定被动收入是10万，那么要多少资产，才能够产生那个回报？
在美国，社会平均回报率是5%，出租房的回报率是5-6% 无杠杆，美股一百多年来的平均回报率为6%。
被动收入10万，回报率5%，资产投入必须是200万，因为 200万 * 5% ROI = 10万回报。
注意，这里讲的是资产，不是现金。现金会贬值，而资产会增值，或带来现金流/被动收入。
在美国，200万美元净资产是一条线，划分中产阶级和财务自由。有200万资产，通常就认为是财务自由了，而且退休后仍然可以维持中产生活。可惜这个水准不算富人。富人的标准是净资产500万美元。
所以说财务自由跟发财是两码事。财务自由也不是财务独立，后者指的是经济上不依靠别人，比如小孩子工作后就可以不再依赖父母。
想要实现财务自由，就要积累被动收入，就要投资。
投资的项目/标的/渠道有很多，比如实业，房地产，收藏品（艺术品等），股票，债券，外汇，虚拟货币（比特币等），风投（天使投资等）。这个我们以后再谈。
P.S. 有的人用财富自由这个词，也错了。财务自由这个词是从英文翻译过来的。财富的对应单词是fortune，不是finance。