Posts Tagged ‘financial-independence’

I think many of us heard about income streams, active income, passive income, and portfolio income before (if not, I have brief description of each below). I’d like to share some quick observations about active versus passive income as it relates to financial independence and wealth.

The image above is a simplification that shows active [...]

In my post “My first credit card and the fallacies,” I mentioned the term financial imprisonment. It is the opposite of financial independence, and I defined it as the state of having to work for money, living from paycheck to paycheck, and never having enough.

Photo from Wikimedia Commons
So, how can one become financially imprisoned? [...]

In “Are you wealthy? Here’s a test,” I defined financial independence as: “when income from my assets can cover all my family living expenses and a few luxuries”. These words were never clear in my mind until I read Your Money or Your Life by Dominguez and Robin and saw the illustration. The [...]