Author
Bowtie Team
Updated on
2025-07-21
Disclaimer: This article is translated with the assistance of AI.
Dreaming of financial freedom in Hong Kong? Discover how much you really need to retire by 30. Bowtie teams up with finance guru and YouTuber Henry for an in-depth breakdown.
What is Financial Freedom?
Financial freedom is defined as a state where an individual doesn’t need to rely on a fixed job income; instead, passive income alone can cover their living expenses and needs. Passive income includes investment returns, rental income from properties, business dividends, and more.
People who achieve financial freedom don’t necessarily stop working. On the contrary, it means having the freedom to choose what work to do, when to work, how long to work, or where to work—or even opting out of work entirely to reclaim control over your life choices.
Most people heavily depend on their job as their sole income source. When you’re only earning from work, you’ve quietly lost your life choices:
For the salary, you commute early and return late every day;
For the salary, you endure pressure from bosses and peers;
For the salary, you lack the courage to quit.
Setting clear financial goals, building savings and investment plans, and gradually moving towards financial freedom is the proven path for countless people to break free from relying on job income.
Calculate Before Achieving Financial Freedom
The conditions for achieving financial freedom are clear: passive income that covers living expenses. Boosting either active or passive income isn’t easy. So, first understand your expenses, cut unnecessary ones, and set a realistic budget— that’s a crucial starting point.
Once you know your budget, think about building enough passive income to cover your needs. For example, a mix of ETFs, bonds, dividend funds, and real estate funds can generate steady annual dividends and interest to fully support your lifestyle.
Plus, build an emergency fund of at least six months to handle surprises, like replacing a broken appliance or a family member’s sudden hospitalization…
Everyone’s passive income sources vary. Living in an international financial hub like Hong Kong, locals have access to plenty of investment options, such as renting out parking spaces, overseas properties, real businesses for dividends, real estate funds, or distributing bond funds. Tailor your portfolio to your risk tolerance and build it step by step.
Achieving financial freedom isn’t easy—it requires a clear plan and consistent execution. In time, you’ll reap the rewards of living without job dependency and enjoy a truly free life.
How Much for Financial Freedom at 30?
The assets needed for financial freedom vary per person, depending on your expenses and asset returns.
According to Numbeo, the world’s largest cost-of-living database, a single person’s monthly expenses (excluding rent) are about HK$8,762.3. Rent for a one-bedroom apartment outside the city center is around HK$12,212.69. So, for a 30-year-old single man, financial freedom means passive income of about HK$20,000 per month.
For a 30-year-old head of a family of four, monthly living costs (excluding rent) are HK$30,976.6, with rent for a three-bedroom outside the center at about HK$24,815.79. That means a family of four needs around HK$50,000 in monthly passive income for financial freedom.
To figure out your required assets, check the Investor and Financial Education Council’s ” Financial Calculator Tool “. Just input your “current age,” “expected retirement age,” “expected lifespan,” “expected monthly retirement expenses (in current value),” “expected inflation rate,” and “expected annual investment return post-retirement” to get your needed retirement savings.
Take a 22-year-old fresh graduate: Assuming financial freedom at 30 as a single; expected lifespan of 83; monthly retirement expenses (current value) of HK$20,000; inflation rate of 2.3%; post-retirement annual return of 10% (based on S&P 500 ETF—SPY’s 31-year average annualized return of 10.53%), you’d need about HK$3,681,783 to achieve financial freedom and retire early.
But if you eliminate rent—say, living with parents or inheriting a property—your monthly needs drop to HK$8,762.3. With other factors unchanged, you’d only need HK$1,612,989 for financial freedom and early retirement.
Ways to Achieve Financial Freedom at 30
Suppose you aim to achieve financial freedom by age 30. Starting from zero at 22 after university graduation, you’d need to build a HK$3.68 million investment portfolio in just 8 years—it’s theoretically possible.
Take investing in an ETF tracking the S&P 500 as an example. Based on historical data, the S&P 500 has an annualized return of about 10%. Assuming a 10% annual return, investing HK$25,500 monthly in such an ETF could theoretically get you to the financial freedom threshold by 30.
If you’re interested, you can use this compound interest calculator to calculate it.
Real Life of Financial Freedom: Expectations vs Reality
Many people imagine that once they achieve financial freedom, they’ll quit work and live leisurely every day, like retirement at 65. In reality, it’s quite the opposite.
The core of financial freedom is freeing yourself from relying on a single income source from a fixed job, giving you back control over your life choices instead of slaving away at work daily. If your dream of financial freedom is lounging at home, sleeping, gaming, and wasting away, you might as well apply for welfare instead of pursuing it through extreme discipline, constant learning, and income growth.
I achieved a certain level of financial freedom at 25, meaning I theoretically don’t need a fixed job income for the rest of my life. This gives me more confidence to face risks and challenges, allowing me to boldly start my own business and explore the world. For example, I founded Henry’s Beginner Finance Classroom (including a YouTube channel, website, and Instagram page), and I can manage my business while traveling constantly.
Achieving financial freedom at 25 was partly due to business success and partly to controlling my living costs. I have no bad habits and no interest in luxurious living.
My current monthly expenses are around HK$20,000. Fortunately, living with family saves on housing. Main costs are food and hanging out with friends, about HK$10,000. Plus, I travel abroad almost every month—as I write this, I’m digital nomading in a seaside city—with flights, accommodation, and transport costing another HK$10,000.
With information flowing freely nowadays, more people are ditching fixed jobs for flexible freelance or part-time work. However, these often have unstable and lower incomes than full-time roles. Many financial freedom seekers suggest using passive income to cover part of daily expenses, allowing an earlier exit from fixed careers.
For instance, if your fixed job pays HK$30,000 monthly, but you want to be a less stressful barista earning only HK$20,000, consider building an investment portfolio that generates HK$10,000 in passive income monthly. This way, you pursue what you love without lowering your quality of life.
It’s crucial to ensure your portfolio generates stable passive income sustainably. Mine uses a traditional 60/40 stock-bond ratio—60% stocks, 40% bonds—for a conservative approach that eases market volatility.
My portfolio’s goal isn’t short-term growth but long-term asset appreciation while providing ongoing passive income. Most of my stock positions are in ETFs tracking broad market indices. The bond portion is mostly direct bonds to minimize impacts from interest rate changes or market conditions.
The following content is provided by Bowtie and is unrelated to the author.
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