In this article, Kim Kiyosaki, author of the Business Week best-selling Book, Rich Woman, reveals 3 essential ingredients in her own unique recipe for financial success
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 (Kim’s husband) 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, 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
Many financial experts say you need to live below your means and save money for retirement. But I am not a fan of that. Living below our means does not inspire me. It kills spirit and keeps people poor. And with today’s interest rates and QE3, where the Federal Reserve is printing more money, the value of the dollar is going to be less and less. It will be very hard to save money.
Instead, Expand Your Means
Be creative and put your money into things that make you money. For example, I once shared 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 on the web, 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 step towards a new beginning this 2012, 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!
Get even more powerful advice to boost your financial IQ and get smart with money in today’s unpredictable economy. Learn from Kim and her husband, Robert Kiyosaki, at the National Achievers Congress in Singapore from 1st – 3rd June 2012. For more information, visit www.nacsingapore.com.