Financial Independence = Current Personal Wealth, generating enough Income over one’s Expenditures to cover the basic necessities & lifestyle.
Financial Freedom = Is beyond basic necessities & lifestyle. It is primarily, ‘what one wants to do with one’s Money’.
Financial Independence # (does not equal) Financial Freedom
Income > Expenses = Asset Creator ➡ ‘Master of Assets’
Expenses > Income = Liability Creator ➡ ‘Master of Slavery’
Assets create more Assets.
Liabilities kill Income & create more Liabilities.
“Financial Independence + Financial Freedom = A happy & a fulfilling Money Life.”
Note: Expenses include any recurring tied up payments (EMIs, Unnecessary Insurance Premiums etc…).