For years, I heard people throw around the term “financial freedom” like confetti at a parade. Everyone had a different definition. Some said it was having a million dollars then withdrawing a certain percentage. Others defined it as retiring early, say 40. My favorite vague answer? “When you have enough money to live on.”

Enough for what? Enough for the current lifestyle, or a reduce retirement one? For how long? Enough no matter what happens?

The ambiguity and arbitrary “rules” drove me crazy. How do you then measure and determine what to do?

Here’s something I’ve distill, after talking to the smartest people, around the world, that I could find. A number, that tells you what to do and indisputable in measuring how “financially free” you are. I call it:

The Financial Freedom Quotient (FFQ)

Here’s the simple formula that changes how you measure freedom (financially):

FFQ = Passive Income ÷ Family Expenses

(It’s a division symbol in case you’re on a small screen)

That’s it. You can calculate it monthly or annually—the math works the same.

The result tells you everything you need to know about how close or far to your financial freedom.

Like most people first starting out, when I first calculated my FFQ, it was zero. I had no passive income. Everything depended on me showing up to work.

But suddenly, with this clarity. I knew exactly what I needed to build. One thing to note here:

Your Job Doesn’t Count

Yes, you read it right: your employment income doesn’t factor into this equation.

I know what you’re thinking. “But I make good money! Doesn’t that count for something?”

It does—but not for your FFQ.

No matter how much your employer pays you, you still have to show up. You don’t own your time and energy. You’re trading hours for dollars, even if those dollars are substantial.

The beauty of this formula is its candidness. It forces you to separate what you earn from what you own.

What Actually Counts as Passive Income?

Passive income is money that flows to you with minimal (or no) ongoing effort:

• Investment distributions (private businesses and notes, dividends, interest)
• Rental income (after expenses and management)
• Royalties from intellectual property
• Business income where you’re not operationally involved

These income streams don’t require you to clock in. They work while you sleep, travel, or spend time with your family.

The Day My Family Became Free

When my FFQ first hit 1.0, I was free. My family was free.

We could maintain our lifestyle indefinitely without anyone having to show up to a job. The math proved it.

That feeling—knowing you’ve crossed from dependent to independent—is hard to describe until you experience it. It’s like becoming alive, once again.

The Emotional Levels of Financial Freedom

As an aside, just to be real with you. Here’s what different FFQ levels actually feel like:

• FFQ = 1: Stress evaporates. Career decisions become choices, not necessities. You can say “no” without fear.
• FFQ = 3: You have options stacked on options. You start thinking about what you want to do, not what you have to do.
• FFQ = 5+: You stop worrying about yourself and start contemplating your legacy. What do you want to contribute to the world?

At an FFQ of 5 or higher, with diversified income streams across multiple jurisdictions, all feeding 2–3 different bank accounts, you’re insulated against roughly 99% of potential calamities.

This is true financial resilience.

How to Build Passive Income

Let’s get practical.

Before you invest in anything, analyze at least 10 deals. Understand what makes a good opportunity versus a mediocre one, and more important, a risky one. What’s Buffet’s #1 rule? Don’t Lose Money, because the math will destroy your momentum and compounding.

This is why we built our investor network at TotalFreedom.io—to share due diligence notes and personally vetted deals that most families never see.

When you’re starting out, tap into networks and deal flow where experienced investors have done the groundwork. Learn as you go. Build your FFQ astutely, meaning you take action quickly, but you enter deals carefully.

Where To Go From Here

First, know your FFQ. Period.

Next, increase it until it’s 5 or higher. Here’s how I’ve gone about it:

Today, I travel the world looking for vehicles to increase my FFQ—and helping families do the same by sharing what I find.

If you want to jump into our deal flow, you can first email us and fill out a questionnaire. Note: I interview everyone personally.

Our investor network at TotalFreedom.io is a closed group—it’s not for everyone so I need to make sure your family goals align with what I am sharing.

As a disclaimer, I’m not your financial advisor. In some countries, I need to say “seek a financial professional for advice”. The deals and due diligence notes I share is purely for informational purposes.

You are here, as someone in the driver seat of your life. You can decide what to do with the info.

If you do want to jump in, ask for the questionnaire via a quick email to Mike@TotalFreedom.io