In summary, to achieve financial freedom, it basically means earning more than what you spend. But in today's world, especially for recent graduates like me, we often spend more than what we earn. We ought to spend a significant sum of money on entertainments and privileged lifestyle. For me and my girlfriend, we used to go out for dinner, a decent meal in a restaurant could cost anything from 20dollars to 60dollars for 2 person. We would go for movies and for some others, club and drinks.
Under such situations, we spend more than what we earn, or maybe not more, but almost. Therefore we are in a situation of zero or very little savings. When life goes on, when we realize we need a house, need to get ready for a family, that is when the crisis kicks in. We start to take up housing loan, and all sorts of loans, and there goes the story. Work hard and earn more to pay off loans. Work harder to earn even more to get better lifestyle.
To be financially sustainable, it is simple. In theory, we just need to control our expenses, down to the level where it is lower than our income. With that controlled, we are in a positive net earnings monthly and we are on our way to financial sustainability. But frankly speaking, how many of us will be able to do that? I mean if you quit your job and go to the forest, start cutting wood and eating fruits or hunt animals for food, you would be financial sustainable.
But these days, the road to financial freedom is through generating passive income. With sufficient passive income streams generated, we would be able to be financially free and have time to do things we care about.
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