Tuesday, October 6, 2009

Thoughts on Financial Freedom -- 1

On Multiple Income Sources

It's Pay Day!
Do you have the feeling of euphoria?
Do you feel like you can finally buy that IPOD you were eying?
Do you feel flushed with cash that you can finally bring your dream girl to an expensive candlelight dinner?

Or are you just happy that your networth has just increased again?

I used to feel happy that I have received my salary month after month, and I looked forward to it month after month. Then it dawned upon me; this habit will get me stucked forever in the rat's race.

Imagine this. A rat is running on a treadmill, trying hard to reach the piece of cheese dangling in front. However, because of the treadmill, the rat can never reach the cheese. And at the end of the run, the cheese is given to the rat as reward. The rat gets a good rest after that. The cycle then repeats next day, and the rat knows that if it carries on, it will get the cheese as food.

Let's bring the analogy to a typical worker. The worker works hard at the job. At the end of the month, he's given a salary as 'reward' for his time. The worker knows that if he continues at this job, he will get his salary month after month.

What's my point? It's bad to get used to a fixed pay cheque every month. That isn't the way to financial freedom! The way to financial freedom is not to be enslaved, and not to be controlled, by a fixed salary. In other words, get used without a fixed salary!

Ok, I know that sounds blur. Probably there will be questions on how to survive without a fixed salary when there are bills to pay, mouths to feed, allowances to give, etc. What I really mean is, to truly achieve financial freedom, we have to secure multiple income sources, and not just rely on a single fixed salary.

To me, financial freedom is about being able to choose what you want to do, to have a choice in your actions, to be able to live life normally and able to help others or do charity work without much worries about money. In short, don't be fixated to your only income source.


  1. Maybe as a salaried worker, it helps in personal development and gives a sense of direction in life, apart from the monetary rewards.

    So there are the intangibles.

    That said; agree being employed for one job only is hard to break out from the financial race because you are also taxed too!

    Poor rat keeps running but hey he likes the exercise, don't he :)

  2. To me, it means being able to do what I want. In the mean time, I still look forward to my monthly paychecks be it earned income or passive income


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