3 Stages of Financial Freedom (Part 2)

By | 03/08/2011

Financial independence means different things to different people. To me, it can be broken down into 3 stages.

Initial Stage.
True Stage.
Perpetual Stage.

Part 2.
True Stage:
You literally don’t have to do ANYTHING at all to make money and still get to enjoy your current lifestyle.

Example: A school teacher spends $30K/year. His rental income from his apartment is collected by a property management company and, after fees, is directly deposited to his bank account every month. Combine this with his investment income from a balanced portfolio of high quality funds, he gets $30K/year. He can quit his teaching job and be free of any money making responsibilities.

-assume all numbers are after tax.

Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

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