The 10% rule：Start from the very beginning and achieve financial freedom within 10 years

Seasonal purchases such as birthdays and holidays.

It also includes some short-term savings, such as emergency money, a home repair cost or travel cost.

Finally, it includes the basic amount you need to save and invest for a long-term retirement plan.

Yes, you need to save for retirement, and if you are doing a job you love, you might think, “I’ll never need to retire.” But the thing is, whatever you say may not count.

When you reach the traditional retirement age, your health or finances may not allow you to keep on working.

So, before you can achieve financial freedom, you need to save a fundamental amount for retirement from your sideline income.

There are two ways to do this.

Simply saving 10 percent of your income for retirement is not a smart way for budget.

Take some time to figure out how much you need to save for retirement according to your situation. It takes a lot of work, but it's worth it.

Once you can pay for all your living expenses and savings needs by doing what you love, you will achieve financial freedom.

Financial freedom is not a lifetime guarantee

Because financial freedom depends on how much income you can earn from doing what you love, it is an unstable status. Financial freedom does not guarantee lifetime freedom.

If you do not earn enough income from the job you love to cover your expenses, you may also lose your financial freedom.

If you just have a bad income in a few months, that may be a temporary situation, but if it is a permanent situation, you need to take on a part-time or other full-time  job which is from 9am to 5pm. You may not love it, but after all, you need to move on to pay the living expenses.

That is why many people do not really think they're financially free when their sideline income starts to exceed their living expenses.