Hello everybody, it is your friend, Juspra!
I am here to tell you what it means to be financially free.
Before I start, I should tell you what financial freedom means! Financial freedom means “income-assets with very minimal work involved” For example, if you make $10,000 per month and have $1,000 in cost and need to work 45 hours per week, that means you are not financially free. Why is that? If you were to quit working, you would have an income of $0 and an expense of $1,000, causing you to be broke for all we know.
If you were to make $250 per month without having to work and then have $350 in expenses, then you are not financially free. This is because you will still owe $100 per month, so you would need to work to earn at least $100 to fix the difference. The final example is a typical example of financial freedom. You have $2,500 coming from one source of income (minimal work involved), $300 coming from another source (minimal work), $4,000 coming from another avenue (10 min more than other minimal work), $5,000 coming from another avenue (more minimal work), and then you have $10,000 in expenses. You still have some more cash to spare, so you are financially free.
That is the dream that Americans wish to have. However, it does not become the reality for millions of Americans that are forced to work in their 70s to pay for past mistakes. If a person was to see the math I did, they would surely be smiling. It is nice on paper, but vastly difficult in terms of making it happen; even winning the lottery is hard. Most people who play never win. It is not a reliable source.
In the long run, building financial freedom and cashflow is easier. It is harder in the short term. Why is that? It is harder, because I need to put in such extensive effort in order to capitalize and make a process I can replicate to become financially free. However, after the effort is put in, I am paid for life. If you average the effort I put in earlier times and then the lack of effort I put into the problem during later times, then the effort is small in the long run.
Comparing it to the traditional school system, 16 years to become a doctor. 5 years to finish residency? Basically 20 years to finally make $200,000 per year. It takes 20 years to do so, With some projects I do, it takes me 3 years to make $3,000 per month for life with minimal effort on my part. That equates to $36,000 per year for life. If I do five projects like that at the same time, then I just made $200,000 per year with three years of effort. This saves me 17 years of work. However, I would go to school because I enjoy the experience and the friends I made.
Let us say that after undergraduate years, I did not go to medical school. I would save myself ten years if I exclude residency from the equation. I could, if my math holds true and I actually follow through, make over $600,000 per year in the same amount of time with mimimal effort thereafter. It sounds simple, but is not.
Being a doctor is a noble profession, and is by no means not worth pursuing. It is that, doing it for the money is outright pointless. I guess it is better than working all your life in another profession and making 80% less money than a doctor. To each their own. I prefer to be financially free than be a financial slave that has a doctor outfit on. No shade intended. You could be financially free and be a doctor. It is have not seen many, though.