# data[].attributes.headline
Financial Freedom, Saving and investment.

# data[].attributes.subject
Financial Freedom, Saving and investment.

# data[].attributes.body
Known as passive Income. Making money work for you. Cash-flow requiring minimum to no effort to maintain the constant stream.

# data[].attributes.attachment_link.readable_text
Last updated on February 16, 2018

From a young age, most individuals are instructed to get an education and then a job. After landing a solid job, the recommendation is to save a small percentage of each paycheck for 40+ years until retirement.

The underlying assumption is that we should all follow the same linear path from elementary school until death, spending the majority of each day at work, trying to climb the ladder, to get a raise, to buy a bigger house, to fill it with more stuff that wasn't necessary to begin with. Only retiring is there room to explore, relax, or spend time with family.

You might call it the time-money paradox. Most Americans trade the majority of their available time for a paycheck, and then spend the majority of each paycheck on depreciating material possessions. As the spending snowballs, many individuals desire a larger paycheck, which requires longer hours and more responsibilities at work, which means even less time to enjoy the additional income. It's a vicious cycle that often continues in perpetuity.

I can't speak for you or anyone else, but the standard American lifestyle doesn't work for me. Instead of material possessions, I prefer to have freedom. Freedom to change careers, start a business, take some time off, or travel the world. It's not about what I choose to do, it's about having the freedom to choose.

What is Financial Freedom?

Being free, financially, means you can maintain your desired lifestyle without a regular paycheck. In other words, financial freedom is the 21st-century definition of retirement.

Instead of defining financial freedom as a single point in time, I like to break the concept down into four stages.
Stage 1) No Freedom
Everyone begins the journey by relying on a monthly paycheck. At this stage, a job and reliable income stream is required to pay the bills. Without the ongoing paycheck, any savings could be quickly depleted and you could risk defaulting on your monthly expenses.
Stage 2) Temporary Freedom
To graduate into the temporary stage of financial freedom, you must spend less than your earn and create a pool of savings. Otherwise, you will be forced to continue working indefinitely because your lifestyle depends on your employment income. As you begin to save a portion of your income, you might invest your savings in a diversified investment portfolio to produce a regular stream of income. Or, you might start a passion business on the side, creating another stream of income.

Your freedom grows alongside your savings. Eventually, you will have enough money saved to feel comfortable switching jobs, starting a business, returning to school, traveling for a year, or any number of other activities that are impossible to achieve while working full-time. These can be major life changes, but they are not permanent. Your freedom is temporary until your income exceeds all of your expenses.
Stage 3) Permanent Freedom
At this stage, your total non-employment income exceeds your total expenses and you no longer require a steady paycheck from your employer. You likely have a reliable side business and/or a large investment portfolio producing a substantial amount of income.

Yes, a side business is still labor income. You are trading your time for money. However, my assumption is that your side hustle represents your passion. It's something that you enjoy doing. Something that you find fulfilling or meaningful.

Fulfillment is the entire point of this article. Financial freedom does not require that you retire early to a life of leisure (unless that is your desire). It's about having autonomy and independence in your daily routine, allowing you to design a better life while spending your time, money, and energy in a more meaningful way. If that includes starting a new business, great! Doing meaningful work while getting paid is my definition of a win-win.
Stage 4) Luxurious Freedom
This last stage is a concept that is rarely discussed or achieved. While I define permanent freedom as the point at which your income exceeds your expenses, such a definition is shallow and full of important assumptions. For example, if you know that you require $1,500/month to live a barebones lifestyle, and you can safely withdraw between $1,500-$1,600/month from your investment portfolio, you have technically achieved financial freedom. But have you?

What if a budget of $2,000/month would provide a significant increase in satisfaction? Perhaps the additional $500/month could be used for hobbies, entertainment, and travel. All of which make you far happier in your life. But $2000/month in expenses is more than your portfolio can support, which means you're headed in the wrong direction (back to temporary freedom).

The tradeoff in this scenario is clear. You can continue working additional years to build a bigger pool of savings, which will provide additional income and flexibility for the remainder of your life. Or, you can leave your job as soon as possible and hope that a smaller portfolio will provide sufficient income. It's all about finding the right balance given your personal situation.

When you have enough passive income to spend freely, that is what I call luxurious freedom. It's the point at which your income exceeds your expenses by a comfortable margin, allowing you to increase or decrease your spending given your desired lifestyle. You might call it financial freedom 2.0.

Do You Desire Financial Freedom?

Ask yourself these questions (and ask your spouse if you have one):

Are you happy with your existing lifestyle?

Have you found a meaningful work-life balance?

Do you enjoy your job and find purpose in the daily routine?

These can be difficult questions to answer, but they provide a great deal of information about your desire for financial freedom. In my experience, responses can be divided into three categories.
1) Work is meaningful
Some individuals find purpose in their career and have no desire to stop working. That's perfectly fine and respectable. You can continue working and be financially free - the two are not mutually exclusive.

Even if you have no desire to stop working, I still believe that financial freedom is beneficial. At the very least, saving enough to reach "temporary freedom" can provide peace of mind. There is always a possibility that your job could be eliminated, or your life circumstances change, or any number of concerns that might be partially remedied by financial freedom.
2) Work is meh, but necessary
Another group of individuals is somewhat indifferent about work. If you fall into this group, you probably don't love work, and it's not your burning passion, but it's tolerable and it pays the bills. There are good days and bad days, but the overall trend might be described as neutral and necessary.

In this situation, your preferred level of financial freedom should be inversely related to your overall disdain for work. You should work harder to increase your savings rate and reach financial freedom if you find yourself increasingly unhappy at work, because financial freedom will allow you to change careers or quit the rat race altogether.
3) Work is boring, terrible, and soul crushing
If you find yourself in this group, financial freedom should be your highest priority. If you truly hate your job, you should be willing to make sacrifices to escape. That might include cutting unnecessary expenses, working a side-job, building your human capital, or moving somewhere with a much lower cost of living. You should be saving as much money as possible, so that you can change careers as quickly as possible.

By focusing on financial freedom, your perspective can be transformed. You can go from sludging through 40 years of dreaded employment, to designing the life that you desire. And you can find freedom quickly if you'll devote your money, time, and energy toward that goal.

The point is this, time (not money) is your most valuable asset. If your time at work makes you miserable, save enough money to quit and go find a new job. Life is too short to be miserable on a daily basis.

Are you Pursuing Financial Freedom?

Given the various stages of financial freedom, and the differing opinions on work, I would love to know where you fall in the spectrum.

Is financial freedom a pressing desire? Or, would you rather continue working and spending your paycheck freely?

For Vanessa and I, financial freedom is our primary long-term financial goal. We appreciate the flexibility and freedom that accompanies a large pool of savings, and we would rather forego consumption than live dependent on a monthly paycheck. Although we haven't yet achieved permanent (or luxurious) financial freedom, we are in a great position. We are completely debt-free, and have accumulated enough assets to purchase a prolonged period of freedom. And at this point, that's all that we desire.

The media often portrays financial freedom as an insurmountable task that requires decades of saving and investing. That's sometimes true, but it's beneficial to focus on each victory along the way. For example, most people could pay off all non-mortgage debt, and accumulate enough savings to find a new career that is enjoyable. Those are huge accomplishments on the journey to financial freedom that should be celebrated.

# data[].attributes.attachment_link.title
Financial Freedom: What Does it Mean to You? | Cash Cow Couple

# data[].attributes.attachment_link.description
Last updated on February 16, 2018 From a young age, most individuals are instructed to get an education and then a job. After landing a solid job, the recommendation is to save a small percentage of each paycheck for 40+ years until retirement.

# data[].attributes.body
Investing is Necessary. Due to it being the Ultimate passive way of income. whether its real estate or etc..
Typically investments sound good in theory but with no experience or understanding it'll seem impossible

# data[].attributes.attachment_link.readable_text
In my role as a financial planner, I serve clients with varying levels of income. But, my goal is the same for everyone I meet. I want to help rich families continue growing wealth while helping young families reach their financial goals.

While a lot of my work revolves around getting clients into the right investments for their needs, I also try to help them understand the point of building multiple income streams.

I do this because, over the years, I've noticed that nearly all of my high-income and high net worth clients have several different streams of cash pouring in every month.

Heck, even I have several income streams going on, including my financial planning practice, blogging at Good Financial Cents, my life insurance website, investing income, and my online course for financial advisors. So, there must be something to this idea of having more than one income stream coming in, right?

How to Build Different Streams of Income

Simply put, more income streams equals more security. It's hard to rely on a 9-5 job for your entire livelihood with layoffs and pay cuts always right around the corner. With multiple streams of income, on the other hand, you can avoid putting all your eggs in one basket - and use several streams of cash to grow rich.

If you're angling for a brighter financial future and think several income streams sounds better than one, here are some strategies to consider:

#1: Diversify your investments.

As an investor, you should always seek to diversify your portfolio as much as you can. Just like you don't want to bet your future on a single 9-5 job, you don't want to bet the farm on a single stock, either.

There are a ton of ways to diversify your investments, some of which can send real income your way. By opening a brokerage account and investing in ETFs or mutual funds, you can earn real returns you can use to supplement your income. Of course, the flip side can also happen - as in, you can lose money. So, make sure you understand the risks before you dive in.

In addition to opening a brokerage account, you can also invest in peer-to-peer lending firms like Lending Club. I've been using Lending Club for a few years, and my net annualized return was 6.02% percent last year. Picking the right investments is easy since the platform offers automatic investing, but you can also pick your own notes if you're brave and want to learn the best ways to leverage the Lending Club platform.

A colleague of mine, Long Island financial advisor Joseph Carbone, says one of his favorite strategies is helping his clients purchase High Dividend Blue Chip stock.

"Not only do you get an average yield of 2.5 to 4%, but you also get a growth component as well," he says. "It works very nicely when you set up a brokerage account and use non-retirement funds."

Obviously, there are plenty of other stock picks that offer dividends as well. At the end of the day, there are dozens of ways to diversify your investments, and you don't have to choose just one.

#2: Offer a service or sell something.

Let's say your investment portfolio is fully diversified, but you're still aching for more streams of income. You can pick up a part-time job for sure, but there might be a better way to earn cash on the side. By offering a service or selling something, you can create a small side business that you get to control.

When it comes to side businesses, Texas financial planner Matt Adams says your best strategy is finding something to sell.

"I've always been a proponent of families starting a home-based business, even one in the direct selling industry," says Adams.

If you sell something - specifically through a third-party company - to diversify your income, you may be able to build passive income that builds slowly over the years. Unfortunately, you usually have to recruit people to sell under you to do this, and that is a deal-breaker for many.

And, let's face it; not everyone wants to sling body wraps or nutrition shakes to their family and friends. That's why offering a service is often one of the best, and least uncomfortable, ways to earn side income doing something you love. Maybe you want to clean houses or rake leaves or help people file their taxes. It's totally up to you, and that's the beauty of this option.

#3: Create a product.

Let's say you want to sell something but don't want to join an MLM. That's perfectly reasonable, but that doesn't mean you have any idea what to sell.

How about creating your own product? If you're creative and savvy, you can dream up some new product and promote it Shark Tank- style. Can you think of a product you wish you had but can't buy? Think outside the box until you come up with a new idea that fills a need.

Digital products are also huge these days. I mentioned already that I have an online course for financial advisors, but you can find courses of all kinds. If you have a specific skill you want to teach other people, setting up a web-based course through a website like Teachable.com is a good way to get started.

You can also write a book, says financial planner Brian Hanks, the author of How to Buy a Dental Practice.

# data[].attributes.attachment_link.title
5 Ways To Generate Different Sources Of Income

# data[].attributes.attachment_link.description
In my role as a financial planner, I serve clients with varying levels of income. But, my goal is the same for everyone I meet. I want to help rich families continue growing wealth while helping young families reach their financial goals.

# data[].attributes.body
Before jumping into making any sort of investment, theirs the risk of losing money. You can't guarantee your future on a 9-5 job. Putting your money in a brokerage
account, ETF fund or invest in peer to peer lending firms.

# data[].attributes.attachment_link.readable_text
In my role as a financial planner, I serve clients with varying levels of income. But, my goal is the same for everyone I meet. I want to help rich families continue growing wealth while helping young families reach their financial goals.

While a lot of my work revolves around getting clients into the right investments for their needs, I also try to help them understand the point of building multiple income streams.

I do this because, over the years, I've noticed that nearly all of my high-income and high net worth clients have several different streams of cash pouring in every month.

Heck, even I have several income streams going on, including my financial planning practice, blogging at Good Financial Cents, my life insurance website, investing income, and my online course for financial advisors. So, there must be something to this idea of having more than one income stream coming in, right?

How to Build Different Streams of Income

Simply put, more income streams equals more security. It's hard to rely on a 9-5 job for your entire livelihood with layoffs and pay cuts always right around the corner. With multiple streams of income, on the other hand, you can avoid putting all your eggs in one basket - and use several streams of cash to grow rich.

If you're angling for a brighter financial future and think several income streams sounds better than one, here are some strategies to consider:

#1: Diversify your investments.

As an investor, you should always seek to diversify your portfolio as much as you can. Just like you don't want to bet your future on a single 9-5 job, you don't want to bet the farm on a single stock, either.

There are a ton of ways to diversify your investments, some of which can send real income your way. By opening a brokerage account and investing in ETFs or mutual funds, you can earn real returns you can use to supplement your income. Of course, the flip side can also happen - as in, you can lose money. So, make sure you understand the risks before you dive in.

In addition to opening a brokerage account, you can also invest in peer-to-peer lending firms like Lending Club. I've been using Lending Club for a few years, and my net annualized return was 6.02% percent last year. Picking the right investments is easy since the platform offers automatic investing, but you can also pick your own notes if you're brave and want to learn the best ways to leverage the Lending Club platform.

A colleague of mine, Long Island financial advisor Joseph Carbone, says one of his favorite strategies is helping his clients purchase High Dividend Blue Chip stock.

"Not only do you get an average yield of 2.5 to 4%, but you also get a growth component as well," he says. "It works very nicely when you set up a brokerage account and use non-retirement funds."

Obviously, there are plenty of other stock picks that offer dividends as well. At the end of the day, there are dozens of ways to diversify your investments, and you don't have to choose just one.

#2: Offer a service or sell something.

Let's say your investment portfolio is fully diversified, but you're still aching for more streams of income. You can pick up a part-time job for sure, but there might be a better way to earn cash on the side. By offering a service or selling something, you can create a small side business that you get to control.

When it comes to side businesses, Texas financial planner Matt Adams says your best strategy is finding something to sell.

"I've always been a proponent of families starting a home-based business, even one in the direct selling industry," says Adams.

If you sell something - specifically through a third-party company - to diversify your income, you may be able to build passive income that builds slowly over the years. Unfortunately, you usually have to recruit people to sell under you to do this, and that is a deal-breaker for many.

And, let's face it; not everyone wants to sling body wraps or nutrition shakes to their family and friends. That's why offering a service is often one of the best, and least uncomfortable, ways to earn side income doing something you love. Maybe you want to clean houses or rake leaves or help people file their taxes. It's totally up to you, and that's the beauty of this option.

#3: Create a product.

Let's say you want to sell something but don't want to join an MLM. That's perfectly reasonable, but that doesn't mean you have any idea what to sell.

How about creating your own product? If you're creative and savvy, you can dream up some new product and promote it Shark Tank- style. Can you think of a product you wish you had but can't buy? Think outside the box until you come up with a new idea that fills a need.

Digital products are also huge these days. I mentioned already that I have an online course for financial advisors, but you can find courses of all kinds. If you have a specific skill you want to teach other people, setting up a web-based course through a website like Teachable.com is a good way to get started.

You can also write a book, says financial planner Brian Hanks, the author of How to Buy a Dental Practice.

# data[].attributes.attachment_link.title
5 Ways To Generate Different Sources Of Income

# data[].attributes.attachment_link.description
In my role as a financial planner, I serve clients with varying levels of income. But, my goal is the same for everyone I meet. I want to help rich families continue growing wealth while helping young families reach their financial goals.

# data[].attributes.body
similar to investing, in that you take a sum of money to purchase the property, and the property returns a cash flow – rent.  You do have expenses related to this that are different from investing, such as a mortgage, utilities, property taxes, etc, which all must be taken into consideration when calculating a return on rental property.

# data[].attributes.body
Relying on one source of income isn't a good idea. 2nd source won't replace it but will provide constant income. Passive income is a good way to get onto the road to financial freedom. Some money making avenues require more work than others, but the return on your time and minimal investment can pay off for years to come.

# data[].attributes.body
If the interest a landlord pays on their mortgage isn’t their biggest expense, it is certainly close to it. Even with rates as low as they are today, interest payments are a sizable cost that needs to be accounted for.

# data[].attributes.body
Affiliate marketing means you sign up with a company and/or entrepreneur and sell their products.

# data[].attributes.body
Technically money on the side. Getting paid After the work is done. comes from real estate or business investments where you don’t have to be present to earn it.

# data[].attributes.body
what do you like? what are you good at? Interest?
For example I enjoy Digital Illustration and logo Designs so I could create a website and or promote the service through another website like Fiverr.

# data[].attributes.body
Active income is money earned when you perform a service. This is money you make from a job and includes salary, tips, commission.

# data[].attributes.body
depreciation tax write-offs are essentially the most important tax deduction in a passive income investor’s arsenal.