As I sat in my room this morning contemplating on what article to submit today, a question just popped up on my mind.
What does it means to be broke?
What does it means to be wealthy?
What does it mean to have a financial freedom?
Is there anything called money fear?
Have done Justice to the first question on my first post today. As a society, we tend to measure financial success based on spending patterns,but our metrics are faulty.However, building wealth is more about how much you keep.
You Know, broke people and rich people approach the same amount of money differently and here is why;
Broke people think it is about how much you earn but rich people know it's about how much of your income you are able to keep and convert into assets that can provide you with an income in the future.
The fundamental difference is that wealthy people understand the relationship between how we earn and how we spend and they know where the balance is.
Active income is the income you get from services rendered, it is usually your income from your job or business.
Passive income in a lay man term is the money that you make while you are sleeping.It is the income you get regularly from investments you've already made.
So what is now financial freedom? It is when passive income exceeds your expenses.
Ideally, the goal is to get to a point where the assests you've accumulated can pay you enough of an income to pay for your lifestyle.
I hope you have gain something from this article. thanks.
In my view Health is first than Wealth. If i will not be healthy then how can i become wealthy or enjoy my money.