Financial Freedom: What Is It, How To Get It And What Its Formula Is .

financial freedom. what is it, how to get it and is its formula barone enterprise

In this guide, I’ll show you everything you need to know about financial freedom: what is it, how to achieve it, and the formula for financial independence.

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What does financial freedom mean? 

Financial freedom is a definition closely linked to an individual’s passive income.

According to the Cambridge Dictionary, freedom is: 

“The condition or right of being able or allowed to do, say, think, etc. whatever you want to, without being controlled or limited”.

Strongly related is the meaning of financial freedom, associated with the cryptocurrency and Forex

What is financial freedom and how to get it? 

Financial freedom is the condition of economic independence that a person achieves in terms of working and economic autonomy

Therefore, financial freedom is variable, depending on a person’s lifestyle. 

It is achieved through the application of a strategy that can generate passive income. 

Is financial freedom legal? 

Yes, financial freedom is legal since the benefits come from passive income, developed in different legal activities.

Examples of financial freedom and financial independence 

The path to financial freedom starts from passive income. 

What is it about? 

The benefits of one person, generated with little effort and time. 

The first step is to devise a strategy and apply it to a specific sector. 

Some examples of independence and financial freedom are detailed in the following list: 

  • Rental of assets
  • Communication area: web pages, blogs, social networks, advertising, etc. 
  • Financial investment is prospering, particularly automatic tradingBarone Enterprise is a financial services company. Provides independent, easy and automatic products to increase equity capital.
cryptomatic trader barone enterprise

How to get financial freedom? 

To achieve financial freedom, you must take the following steps: 

  1. Mark an objective related to your interests. 
  2. The investment must be part of your personal distinctions
  3. Pay off possible debts. 
  4. Initially, maintain your standard of living. 
  5. Generate passive income. 

How is financial freedom achieved? 

Financial freedom is achieved with passive income, without a person’s presence, and with the independence of an active income, such as payroll. 

And, although financial freedom is not directly related to the amount of money, it is to free time

For example, financial freedom is accessible through automatic trading operations. 

Cryptocurrency is the currency that most users join. 

In the last decade, crypto wallets have grown steadily.

You can see it in the following graph: 

number of cryptocurrency wallet users

Although the increase is widespread, there is strong growth in the third quarter of 2019, specifically, 42 million users of digital wallets. 

And until the second quarter of 2020, 50 million online wallets were counted. 

When is financial freedom achieved? 

The achievement of financial freedom is acquired when passive income far exceeds expenses, in such a way that you could not even spend those passive benefits. 

This final stage is called financial freedom

But to get to that point, you have to go through other phases first: financial security and financial independence

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Financial security corresponds with your ability to pay your expenses. 

On the other hand, financial independence already implies a certain economic standard, more permissive and relaxed, for a family

When a person has achieved all the steps, he can be considered to have achieved work and financial success

How much money is necessary for financial freedom? 

To calculate financial independence, you may consider those factors: 

  • Age. 
  • Savings: the amount of money available that you can access in a short period of time.
  • Monthly/annual expenses
  • Monthly/annual income

Each person, couple or family has a lifestyle and will move in one economic range or another. 

What are the secrets of financial freedom? 

There is no concrete secret about financial freedom, but there are some tips that can be applied: 

  • Calculate monthly/annual savings, income and expenses. 
  • Acquire financial education: with the rise of this concept, there are many books, PDF, etc that develop tips for all types of receivers. 
  • Generate at least one source of passive income
  • Operate in profitable financial services, such as investing in bitcoin

Barone Enterprise offers CryptomaticTrader®. The service places the orders and the client, through the platform, observes the results. 

cryptomatic trader barone enterprise

How to carry out a good financial education? 

Financial education is the knowledge that citizens acquire about finance, such as investments or income management. 

This term has caused an international interest among the main world powers, such as the United States, the United Kingdom or Japan. 

In 2020, the Organization for Economic Cooperation and Development (OECD) developed a financial inclusion and education strategy for Latin America and the Caribbean countries. 

The objective was: 

“Compile and analyze the most significant challenges encountered in implementing national financial inclusion and education strategies in a group of Latin American and Caribbean countries. At the same time, it introduces learning experiences and success stories in this process”. 

What steps can a family take to achieve a good financial education?

  • Learn the key concepts of financial vocabulary. 
  • Control debts
  • Find the perfect balance between income and expenses. 
  • Establish financial priorities and goals. 
  • Invest in cryptocurrency or Forex

How do you earn money? 

After reading this guide, you can understand the importance of financial education and that passive income is the way to gain financial freedom.

Besides, the sources of passive income are focused on the technology and financial sector

Internet, social networks, advertising, affiliate marketing, … are the areas that most entrepreneurs exploit. 

Investing in automatic trading markets is an alternative that combines both technology and finance. 

Barone Enterprise coordinates the investment of the markets with the design of trading bots.

An option for those traders who can make a profit with the diversification of financial services

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Passive income and financial freedom have become the goal of many citizens. Why? 

For example, in Europe, the pension system is under constant pressure.

Life expectancy has increased and the solution different entities proposed is to increase the retirement age

The latest report, Pensions at a Glance, from the OECD, urges European countries to match the age to Denmark (74 years) or Italy (71 years). 

The following infographic shows the current age at which each European Union states retire, and the future: 

retiring age in europe barone enterprise

The average for the European Union is currently 64,3 and will increase, in the coming years, to 66,2.

The formula for financial independence 

The most widely used formula for financial independence is 4%

It consists of a rule that calculates what percentage of your investments you can spend and tells you what your financial goal is. 

The formula is to multiply the annual expenses by 25. 

The result is the financial goal. 

5 - financial freedom. financial indipendence formula. infografica. Barone Enterprise 2021 (1)

Of those 250,000 euros, you withdraw 4% per year to live. 

Regardless of financial freedom, the 4% rule is a very common calculation among investors and society interested in financial education.

Conclusions 

Financial freedom is a concept that is taking hold in recent years. 

Although it is a goal sought by many people, achieving it requires perseverance and financial education. 

From this guide, you can draw those conclusions: 

  • Financial freedom is the condition of economic independence that a person reaches. 
  • The individual acquires working and economic autonomy
  • It is achieved through the application of a strategy that generates passive income. 
  • From 2016 to 2019, the number of blockchain wallets has increased worldwide. 
  • Financial freedom is related to free time, and not so much to large income. 
  • Before achieving financial freedom, you need to acquire financial security and financial independence
  • To calculate financial freedom, you have to compute income, expenses and savings

One of the best options to acquire financial freedom is investing in markets such as cryptocurrencies or Forex

Barone Enterprise designs bots that operate in multi-million dollar scenarios.

Thus, our clients can make a profit from market diversification.

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