Get Financial Freedom in 2023 – 4 Important Steps

What is Financial Freedom

* Financial Freedom is a term that we often come across nowadays. Different people come up with different definitions. Some say: It’s about buying what you want and when you want; having no debt; being able to support yourself, or simply being rich.

Well, these are just vague and half-baked answers. Though we often spend time discussing the topic and how we can achieve financial freedom, the truth is we are completely clueless about what it actually means.

And, if we don’t have a clear idea about what our goal is, how can we ever reach there. In this blog, we discuss financial freedom and a step-by-step approach to how we can achieve it.
Financial freedom is having enough residual income to cover your living expenses. It is not about being rich and having tons of money, but having enough to cover your expenses so that you can spend your precious time doing what you like rather than doing things just to earn money. This can be achieved only when you are prepared for it. All you need is a little financial planning.

* It can mean different things to different people. For some, it can mean a lot of wealth so that they don’t have to work anymore while for some it can mean earning enough to fulfil their dreams without feeling overworked. Being financially free depends mainly on your personality, society, lifestyle, values, and goals.
In simple words, being financially free means to be able to manage your finances well enough to live your life the way you want to. It gifts you with these:

• Choice – To make your own life choices without fear
• Security – To ensure a life of stability
• Exploration – To be able to explore new ventures without stress
• Comfort – To not have to give up on your comforts
• Time – To have more control over time

Benefits of financial freedom

1)Better security
The need to feel secure is one of the most basic human needs. It drives all decisions we take, especially our financial ones. Without security, we would be spending our lives in survival mode and attracting a lot of unwanted stress. Financial freedom helps to reduce the burden of living from pay-check to pay-check and ensures your dreams and goals are taken care of.

2)More control over time
With financial freedom, you get the opportunity to work how and when you want. It gives you better control over how you want to spend your time. When your expenses are covered by additional sources of income, it leaves lots of time, space, and resources for you to focus on your passions.

3)Pursue your goals
Financial freedom shifts your mind set from working to pay your bills to following your passions. The funds you generate or save over and above your income can be used to pursue your interests like traveling or taking a hobby class, learning a new skill, and more.

4) Align your actions with your values
Not always do we get to do the job that matches our values or passions. We are driven by the need to meet our expenses. Financial freedom changes that. Being financially free, you don’t need to be driven by profits anymore. Rather, you are driven by your ideals and values. This gives you the choice to select the kind of work you do, when you do it, and how you do it.

5)Take risks
It’s not easy to take risks when you aren’t financially secure. Financial freedom opens up a world of possibilities for you. Waiting to take that world tour? Go ahead. Planning to shift to a different country and settle? This is the time. Waiting to make the switch to a new career? You’ve got this. Planning to build your start-up? Go right ahead. ICICI Prudential Freedom SIP could give you the chance to achieve financial freedom. It not only helps you create wealth to meet your expenses but also to use your precious time to do what you like. This feature lets you invest in a disciplined manner and also gives the benefits of regular money.

1) What Is Passive Income?

Passive income is defined as earnings you get from a rental property or some other enterprise in which you are not actively involved. Essentially, it is money that doesn’t require you to do a lot of “active” work to earn. The main goal is to basically earn money while you sleep.
To do this, you might have to invest time or some money to create something upfront, and then this will help you to generate income down the road, with only a little additional effort along the way.

How do you actually earn passive income?

1)Asset sharing. Asset sharing is the act of sharing things that you already own, at a price.
2)Peer-to-peer lending.
3)Drop shipping.
4)Investing in crowdfunded real estate.
5)Monetizing your audience.

What is the most profitable passive income?

Create a course.
Write an e-book.
Flip retail products.
Sell photography online.
Dividend stocks. Rent out a parking space.
Sponsored posts on social media.

2) What Is Active Income?

Active income refers to income received for performing a service. Wages, tips, salaries, commissions, and income from businesses in which there is material participation are examples of active income.

Benefits of Active Income Plan

This plan can be described as ‘Single Battery Double Power’. Get both – the benefits of life insurance and regular income with tax benefits because this plan is twice as nice! You can start getting your income from the 2nd year of your policy all the way till you’re 99!

Benefits of Earning Passive Income

It’s likely you already understand some of the benefits and forms of passive income. Making money from something you created, without having to work eight hours a day for every cent is a dream many people have, because it promises to make life easier, more enjoyable, and more comfortable.

Let’s take a look at how you can work toward a more satisfying way to make a living by topping up your income, pursuing your hobbies professionally, and developing your skills.

How do you get active income?

If you’re working for a person or a company–be it manual labor, office work, or home-based service–you earn active income.

3) What is silent investment?

A silent partner, or sleeping partner, is a passive financial investor normally found in a limited partnership with little to no say in the day-to-day running of the business. Typically the silent partner’s liability is limited though not necessarily.