While the number of cashflow producing assets required to achieve financial freedom can vary depending on your individual circumstances, having at least five cashflow producing assets can offer several advantages:
Redundancy: Having five cashflow producing assets provides even greater diversification and redundancy than having three. This means that if one of your income streams dries up or underperforms, you still have multiple other streams of income to rely on.
Increased Stability: With five cashflow producing assets, you have a more stable financial foundation. You are less likely to be financially vulnerable to unforeseen events, market fluctuations or changes in employment.
More Opportunities: With more cashflow producing assets, you have more opportunities to invest in a variety of asset classes and industries. This diversification can help you take advantage of different market trends and investment opportunities.
Greater Flexibility: With more cashflow producing assets, you have more flexibility in how you choose to structure your income streams. You can choose to focus on assets that generate more passive income, or you can choose to invest in assets that require more active management.
Faster Financial Independence: By having five cashflow producing assets generating income, you can achieve financial independence and retire earlier than you might with fewer assets.
In summary, having at least five cashflow producing assets can offer additional advantages such as redundancy, increased stability, more opportunities, greater flexibility, and faster financial independence.
Food For Think 💭
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