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When it comes to the term "financial freedom," many people have a contradictory feeling. They want to click and see, but they are also worried about being deceived. Do you often feel deceived? In fact, this depends on what you are looking for. If you hope to get a step-by-step guide to achieve financial freedom, you will be disappointed because you lack a basic understanding of how social wealth operates. You may want to hear something that anyone can do, but the reality is that financial freedom requires a deep understanding of how wealth is created and managed, and this cannot be achieved through a simple set of instructions.

If that's the case, why aren't other people financially free? As the saying goes, "The freedom of others is the hell of others." Think about this statement, and you will realize that it is impossible to become wealthy by simply doing simple and specific things. But you don't need to feel guilty because the lack of freedom in others is not caused by you, but by themselves. Whether you are free or not is your own choice. So, before talking about freedom, let's first talk about what a relatively stable and healthy financial structure should look like.

To achieve financial freedom, a person needs to have four different sources of income. First, there is a continuous cash flow that generates positive returns, which can be passive income, such as dividends from company stocks or stable returns from certain investments, or active income from operating a cash-flow-positive company. This is the foundation that gives you confidence to invest, start businesses, and try new ventures. Every rich person has their own money tree, and without a money tree, they cannot be considered wealthy. We often hear about entrepreneurs who have billions of dollars in net worth but end up bankrupt once their projects fail. Such people cannot be considered wealthy. Only when a person has a money tree that provides security for their livelihood, entrepreneurship, and investments can they be considered wealthy. Secondly, there are structured and phased investment returns, which may not be high-yielding investments, but investments that have a fixed source of income, regardless of profit or loss, can provide stable income. This can prevent you from coming back empty-handed, where you may have no cash flow for several years or months. Next, there is active labor income, which is income that you actively generate yourself. Financial freedom does not mean not working at all; it means doing what you love. You need to have active income, which can come from a cash cow job or a business that you continuously reinvest in to expand. However, you need to actively contribute value to society and others in order to find meaning in your existence. Once you start providing value to others, you will naturally find yourself engaged in some form of work. Lastly, you need high-risk investments with high return potential. Almost all wealthy people did not accumulate wealth by saving every penny they earned; they took high risks to achieve high returns. Poor people do not have the privilege to take such risks. Due to difficulties in accessing information and opportunities, they lack the ability to take on multiple investment risks simultaneously. If they put all their eggs in one basket, their situation may be worse. But if you have a money tree to support you, you can take the risks necessary to become wealthy. So, I say every rich person has their own money tree, and without a money tree, they cannot be considered wealthy.

If you haven't obtained these four sources of income yet, don't worry, take it step by step and fill in the gaps. If you already have these four sources of income, then you need to allocate your fixed assets and liquid assets based on liquidity, dividing them into three categories: global, overseas, and domestic. Only then can you have a healthy and stable financial structure. Although unexpected situations may arise, with this structure, no matter how severe inflation is, how weak the economy is, or how unstable the political situation is, you and your family can maintain a relatively prosperous state. This is not a matter of luck; it is a technical skill.