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Obtain Financial Freedom without Living Below Your Means

Obtain Financial Freedom without Living Below Your Means

How do you know when you're financially-free?

If you or your spouse stopped working right now, how long could you survive? The average person cannot survive more than three months.

Financial freedom is not about amassing millions of dollars to live off of. It is simply having more money coming in every month in cash flow from your investments, or your business, than is going out in living expenses.

For example, Robert and I retired in 1994, but we didn't have a lot of money. What we had was $10,000 per month coming in from our investments, primarily real estate at that time. We had $10,000 coming in every month, but our living expenses were only $3,000.00 so at that point, we were financially-free. And then from there, we grew it and grew it and grew it.

Financial freedom is not about sacrifice.

It's about being creative and following the stages of the Triple-A Triangle I discussed last week.

Many financial experts say you need to live below your means and save money for retirement. But I am not a fan of that.

Who wants to live below their means?

It does not inspire me. I think it kills the spirit and keeps people poor. And with today's interest rates and QE3, where they are printing more money, and the value of the dollar is going to be less and less, it's very hard to save money.

Instead, I say expand your means.

Be creative and put your money into things that make you money.

For example, in "It's Rising Time!," I share a story about a woman who loved to spend money on designer handbags. She did not stop buying these handbags to save money. Instead, she realized that all of her friends wanted to borrow her handbags so she decided to rent them out. Now, she has cash flow coming in each month from her rental-handbag business.

And when some friends of mine wanted to self-publish an eBook online, they created a 20-page document on how to do this and turned it into an eBook. Now, they make about $100 to $200 per month selling this eBook online.

To be financially-free, think about your area of expertise. What you can offer to expand your means and increase your cash flow?

As you enjoy the holidays, take some time to think about your future. Even if you are struggling with finances right now, know that by being creative, learning about money and taking action, it is possible to enjoy financial freedom in the years to come!

The entire team at The Rich Dad Company wishes you a wonderful and peaceful holiday!

For more information on "It's Rising Time!," click here and to find out about free resources to boost your financial education, click here.

Leave A Comment jump to leave a comment
mark
12/27/2011 11:13:27 AM
Hi Kim, Happy New Year to You , Robert and the Rich Dad family. I always find perspective and innovative thought from you and your husbands articles.I would like to comment on the statement that printing more dollars will make it less valuable.I have been writing government and finance groups addressing this issue.The quickest responses came from 2 offices of the Federal Reserve.Since money is electronic (credited from one computer to another),we are off the gold standard, and consumer want and need never end; If we establish the standard of one dollar is 1. And Consumer Confidence and Want is the "New Gold Stanard"; through contracts, treaties, and laws we can reset the game, before the currency reaches zero.And nobody has to lose. Gold can still be 1800 an ounce( it will always go up). Oil can stay 3 dollars a gallon. Banks get their loan money back with interest, debts are erased (government and personal), and economies restored.There are more interesting features to this angle on the "How Can I Afford? " principle, but, Let's let "Them" absorb the foundational blueprints, before showing them the super-structure that can be built on it. 2012 being an election year, we may see some " Rabbit/Hat Tricks", it is our best time this decade to leverage.But, remember to ask yourself, " If 'they' could do it this year, what about the previous 3 years?"...Mark David Madden
Idiotpolice
Wednesday, January 11, 2012
This is the most idiotic statement I've seen on this blog....and there have been alot!
Lloyd
12/29/2011 8:26:03 AM
I love the example of the handbag idea too. It inspires me to use my skills to create extra income. That's probably what Robert meant when he said to acquire $ 150-200 extra per month to help yourself leverage out of debt.
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readtoawake
12/22/2011 1:03:53 PM
1) Savers become losers when government prints more money. Many things in this world have changed since 2007. 2) Middle class is shrinking because of job loss and inflation. 3) People who have financial education and change investment strategies according to the economy, are becoming rich because they know where they should invest to become richer. 4) You need to use debt to acquire assets if you want to become financially Free. It can be risky to get into debt but if you have sound financial education, you can become very rich with this strategy. For more information, Please read Unfair advantage by Robert Kiyosaki. http://www.readtoawake.com/unfair-advantage/
wcl
12/22/2011 4:01:55 PM
Thank you for sharing=)
Rosabel
Saturday, December 24, 2011
Thanks Kim and Robert...
alvion
12/24/2011 6:34:29 AM
Как мне начать играть в игру денежный поток?
Crystal
12/24/2011 10:45:51 AM
There are so many simple people doing brilliant things! I love the simplicity of the hand bag story. It's a great example of the many opportunities we miss everyday.
alvin
12/25/2011 6:51:25 PM
thanks Kim and Robert
Rajeev
12/26/2011 9:52:12 PM
Thank you Kim and Robert
Kennedy
12/27/2011 7:43:36 AM
Am happy to belong to the rich dad community,i want to learn more about financial freedom which is what i crave for everyday of my life.Thanks kim for your help in this regard.
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cham jumamil
12/28/2011 9:07:47 PM
happy new year Rich Dad family.. Very insightful article!
amol
12/31/2011 11:20:37 AM
Am happy to belong to the rich dad community,i want to learn more about financial freedom
David
1/1/2012 10:11:11 PM
Happy New Year! Get paid daily, weekly. Build your success story today. Please visit: http://Venture-Dream.com to financial freedom is NOT dream.
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