Financial Freedom Formula
Financial Freedom is achieved when your passive income + portfolio returns permanently cover all your living expenses:
Your Freedom Index tracks progress: 100% means you're financially free. The Freedom Corpus is calculated using real return rates (adjusted for inflation).
Frequently Asked Questions
The Financial Freedom Index (FFI) measures what percentage of your monthly expenses is covered by passive income (rent, dividends, royalties) plus returns from your investment corpus. An FFI of 100% means you are fully financially free — you no longer need active employment income.
Rental income, stock dividends, bond interest, royalties, business income requiring minimal active involvement, peer-to-peer lending returns, and SWP (Systematic Withdrawal Plan) distributions from mutual funds.