What are the criteria for financial freedom? How do you achieve financial freedom?

Ordinary people think that only "buy what you want" is called financial freedom, so isn't it necessary to have hundreds of millions of deposits? In fact, they confuse financial freedom with financial freedom. Let's look at the three stages of freedom:

When your income is made up entirely of after-sleep income, you enter a state of time freedom.

When your bedtime income covers your family's expenses, you're in a state of financial freedom.

When your post-sleep income fully covers luxury consumption, you will enter a state of financial freedom.

Buy what you want" is wealth freedom, financial freedom is just to solve your family's normal expenses, the threshold of financial freedom should be determined by how much your family spends, not a one-size-fits-all expert, you spend 2,000 yuan per month enough for a family's expenses, this is your threshold, and I want to spend 10,000 yuan a month, this is my threshold, everyone is different.

In the past two years, "financial freedom" has become an ultimate goal for many people to manage their finances, but the standard of "financial freedom" is very vague.

Financial freedom refers to the state in which a person does not have to work hard for money for living expenses. To put it simply, the passive income generated by a person's assets is at least equal to or exceeds his daily expenses, and if it enters this state, it can be called financial freedom.

Financial freedom applies only to a small number of people, and if the vast majority of people try to achieve financial freedom, the system will inevitably collapse.

The criterion of financial freedom is first and foremost inseparable from the "Four Principles of Financial Freedom":

The first principle of personal financial freedom is to reduce your material desires;

The second principle of personal financial freedom is to have at least RMB 6 million available for investment;

The third principle of financial freedom is that land is not enough;

The fourth principle of financial freedom is to realize the magic of compound interest.

According to the criteria given by the Hurun Research Institute, the net asset value of first-tier cities and second-tier cities should reach 100 million yuan for financial freedom. So some people divide financial freedom into ten levels, and see where you go.

The first stage: the freedom of the wet market.

Phase 2: Freedom of Transportation.

Stage 3: Freedom to rent.

Stage 4: Freedom of Travel.

Stage 5: Freedom to buy a car.

Stage 6: Freedom of Education.

Stage 7: Freedom to buy a home.

Stage 8: Medical Freedom.

Stage 9: Freedom to work.

Stage 10: Freedom of life.

Freedom in life is the highest level of financial freedom.

Financial freedom refers to the state in which a person does not have to work hard for money for living expenses. To put it simply, a person's assets generate a passive Hokuan income that is at least equal to or exceeds his daily expenses, and if you enter this state, you can call it financial freedom.

Financial freedom only applies to a small number of people, and if the vast majority of people try to achieve financial freedom, the system will inevitably collapse. The theory is that passive income, on which financial freedom depends, comes from the active income of others.

In each era, the standard of financial freedom is different. For example, in the 80s, 10,000 households were considered to have achieved financial freedom. But now many people have a monthly salary of tens of thousands of yuan, so now a higher standard is put forward for financial freedom, for example, in the author's opinion, if you want to achieve financial freedom in today's society, then you must meet the following two standards:

The first criterion: the household cash deposit should be more than 500,000. According to the data released by the central bank, the current per capita deposit in China is 10,000 yuan, and the average household deposit is about 200,000 yuan.

If you want to achieve the standard of financial freedom, then you must at least double the average household savings, so the author believes that the family savings must reach at least 500,000 deposits to be called a financially free family, note that this is a deposit, not anything else. The second criterion: not working enough to have enough income to support the family.

For a family that has achieved financial freedom, wage income must only account for a small part of the family income, at least enough to support the family even if it does not work. Therefore, this means that wealth-free families have a large amount of assets that can generate income, including but not limited to real estate, **, capital and other assets. Especially real estate, for a family with free wealth, real estate is definitely an indispensable asset component of the family, and it is also the asset that can create the most income.

The reason why so many people envy the life of the landlord now is because the landlord has tens of thousands of rent income even if he doesn't go to work every month, which is much more than the average office worker earns a month. Therefore, if you want to achieve financial freedom, you must have enough real estate assets in your hands. Of course, it is not enough to have real estate, these properties must also be real estate assets with no liabilities.

Why? Because there is a very strange phenomenon in China's property market now, that is, many people obviously have tens of millions of real estate assets in their hands, but their lives are like beggars. This is mainly because the properties in the hands of these people are bought with loans, and they are burdened with heavy debt pressure, and they have to save money every month in order to repay the mortgage.

Therefore, such a family, no matter how much real estate assets in hand, cannot be regarded as a family that has achieved financial freedom. Therefore, in the author's personal opinion, families who achieve financial freedom must meet the two criteria mentioned above, one is to have enough cash deposits, and the other is to have enough surplus real estate assets. Cash deposits can be as much or as little as possible, but properties must be more.

The criteria for financial freedom are as follows:

1. Core Standards:

1. Investable assets.

Investable assets should be greater than or equal to 100 years of annual salary. If the initial investable asset is too low, it will be highly dependent on the return on investment, and the security will be insufficient.

2. Return on investment.

The long-term annual compound rate of return should be greater than or equal to the average annual inflation rate plus 2 percentage points. If the rate of return on investment does not outpace the inflation rate, the actual investable assets will shrink in the long term.

Second, it quietly model other guarantees:

1. A set of owner-occupied housing.

The per capita living area of the family is greater than or equal to 30 square meters, with full property rights, no mortgage, only for self-occupation, and the value and appreciation of the property do not refer to the investable assets of Kaijin. Investment is risky, and a set of owner-occupied housing is an important basic guarantee.

2. Stable cash flow.

Annual cash dividends or fixed income dividends, or other stable cash dividends, greater than or equal to times the annual salary.

3. Social insurance.

"Five insurances and one housing fund" - endowment insurance, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance, and housing provident fund should be complete.

4. Commercial insurance.

Life insurance, critical illness insurance, and accident insurance are the best triangles of family allocation insurance. The essence of insurance is protection, risk management, and a send-off rather than icing on the cake. When buying insurance, you must first see whether the protection function is in place, but the protection is always more important than the return.

The most important thing about insurance is planning, and everyone needs to tailor it to their needs.

5. Major expenses.

Foreseeable major expenses such as children's overseas study funds and major asset purchases should be planned in advance, and major expenditures should have cash flow guarantees that do not affect the accumulation of assets. <>

Financial freedom usually refers to a state in which a person does not have to work hard to cope with the stresses of life. If people achieve financial freedom, they have enough time and money to do what they want. Wealth freedom can be achieved if a person's passive income from assets (such as bank interest) is sufficient to meet their daily needs.

The criterion of financial freedom is usually closely related to a person's level of consumption and desire to spend.

The three elements of financial freedom.

If investors want to achieve financial freedom, they must manage their risk, mindset and money.

1. Risk management: a necessary condition for achieving financial freedom, a sound risk management method can avoid many unknown risks in the later stage, and will not panic when the real risk comes;

2. Mentality management: Because there are many unknown situations in the market, investors need to have a good attitude to face risks and make appropriate judgments and deals with the risks;

3. Fund management: make reasonable capital investment, pay attention to stop loss, profit and control of the amount of capital code. Know.

If a person is financially free, after a person is financially free, he can buy things without looking at the price, he can often travel with relatives and friends, gather, travel, and make money through multiple ways. Achieving financial freedom is a dream for many, but most are still far from achieving it. If we achieve financial freedom, how should we live the rest of our lives?

I can only say that I can live as much as I want.

First of all, you don't need to worry about the price when you buy something. Many people will look at ** first when buying things, calculating how to buy more cost-effective, especially when buying clothes and bags, most of them will take advantage of the seasonal discount to buy, which can save a lot of money. But financially free people don't need to live so tired, as long as they like it, they can buy it home anytime and anywhere, they don't need to think so much at all, and they don't even need to look at the price tag, they just need to say "swipe the card" to the salesperson arrogantly, after all, this little money is simply not worth mentioning for them.

Second, you can live the life you want. Most people live in the trivial things of firewood, rice, oil and salt every day, and the most they think about every day is how to face work pressure, how to help their children with homework, what to eat at night, and so on. Of course, financially free people don't need to think so much, they can meet with friends and family in their mansion anytime, anywhere, and have a trip that is just on the go.

They can even buy a villa in the countryside without blinking an eye, and live the days of "picking chrysanthemums under the east fence and leisurely seeing Nanshan", just because they like it.

Finally, people who achieve financial freedom also need to think about managing their finances. No matter how much money you have, there will always be a day when you run out, so the most important thing to consider after achieving financial freedom is how to make money. For example, they will buy some financial products, use the money in their hands to start a small business, invest and so on.

On the one hand, you can earn more, and on the other hand, you can also find some fun in your life, after all, too many days of idleness can also make people feel very bored.

For the vast majority of people, they are eager to achieve a state of financial freedom, after all, most people have a certain yearning and pursuit of a better life, but each person's standards and definitions of financial freedom are also different, and I think the degree of financial freedom should meet the following conditions.

First of all, I think that the real sense of wealth freedom should at least allow yourself to have a sufficient deposit, to ensure their own needs, this deposit according to the current level of consumption, I personally think that there should be at least about 5 million deposits, even if this part of the deposit into the bank, there can be a small interest of 200,000 per year, to ensure their daily living expenses, even if they are not working, but also to be able to carry the bank enough to let themselves live a relatively superior life, in this way, You can choose the job you like to do without the pressure of life, and you can realize your dreams by doing what you like to do.

On the other hand, financial freedom also requires you to have a house in the core area of the city where you live, and the area of the house should at least reach about 120 square meters of three-bedroom, two-living room and two-bathroom sliding banquet house, so as to ensure that you and your family members live in a more comfortable state, in addition to the house, you should have a car of about three or four hundred thousand, because such a car can meet your travel needs in terms of performance and face, of course, in addition to wealth freedom, In fact, for us, it is more important to have a harmonious and happy family, so that we can feel true happiness, if it is only financial freedom, and the family relationship is not harmonious, then this kind of life itself has no meaning for us.

The so-called financial freedom is not having to spend your own time in order to meet the necessities of life.

The freedom we want is essentially the autonomy of time.

With time, I can live the way I want.

First of all, set aside a certain amount of time to exercise every day, after all, the body is the capital of the revolution!

Only by having a healthy body can we face all kinds of things in life with sufficient energy.

Secondly, take a certain amount of time to read more books every day, so that your knowledge will continue to enrich your head and open your mind.

As the saying goes: There is a ** house in the book, and there is Yan Ruyu in the book.

Don't wait, the book will be hated less when it is used!

Then, there are several walk-and-go trips a few times a year.

Take your favorite book and go where you want to go.

Feel the customs and customs of different regions and feel the magnificence of nature.

I remember this saying:

It is better to read 10,000 books than to travel 10,000 miles, and it is better to read countless people than to read 10,000 miles.

As the old saying goes: If you are a threesome, you must have my teacher.

I hope to make more friends in my lifetime, enrich my experience, and also hope to work hard with like-minded people for a career or a goal to create a beautiful and happy life, this life is enough.

If I can really achieve financial freedom in the future, I will go back to my hometown to make a vegetable garden, decorate the house in my hometown, and invite three or five friends to a farmhouse on holidays (I have many friends who have stayed in my hometown to develop), usually write articles, take my children out for a walk every day, take a walk, and feel the natural scenery of the countryside. Usually you can also play small mahjong with your neighbors, play poker (I'm a mahjong lover), it's good, I really want to be rich and free as soon as possible! I don't want to be rich and rich, I just want to live happily.

Life has a vision, work is more energetic, it's good to think about it when you're bored, this is also a kind of planning for future life training, haha!