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.