To the poor, a job is something they need to pay the bills. To the sensible, a job is something that they can use to gain experience, and perhaps be promoted or get a better job next time. To the rich, a job is a stepping stone to financial freedom.
In rocket science, escape velocity refers to the speed an object must travel to escape a planet’s gravity pull. Apparently, the larger the planet, the faster this speed will have to be. Likewise, financial escape velocity refers to the amount of passive income you earn every month to become free of the rat race. It varies depending on the cost of living of the place you (and your dependents) stay. It also varies depending on the lifestyle of you (and your dependents).
Hence, we can roughly estimate that: cost of living X lifestyle X number of dependents (including yourself) = your financial escape velocity.
A way to become free faster is to live a simple lifestyle and do without luxuries like overseas vacations, expensive jewelery, spa treatments and the like. Living with only the basics may sound harsh, but if you have all the time you need to develop your passive income streams further, these can all come later.
Another way is to change the location that you live. If we are staying in Singapore, it may cost S$1000 (US$810) per person per month including rent to have a minimally comfortable lifestyle. If you are staying in the Philippines, that drops to S$300 (US$250). It may be even cheaper for India.
Having this numbers provide you with a goal. Now you can plan how much passive income you must generate each month, and the suitable vehicles you can use to achieve these.
