Financially freedom

Kiyosaki, said "you are financially freedom if You get Pasive Income 3X > Expenses, it means:

FF = 3PI 3 > E

Example:

Expenses (E) = $1000.-/month

You could be Finanacialy Freedom if You get $3000.-/month, From your Pasive Income (PI)

Why $3000?

$1000,- you use to expense from your basic need especially For food, insurance, mortgage and so on. $1000,- for saving and $1000 for investment.

Ok, so let's get triple pasive income to financially freedom.

Achieving Financial Freedom

Definition of Financial Freedom
Financial freedom is a word that has taken primacy in the 21st century. It is a term that describes a lifestyle that is organically planned where no one is required to work for income to cover their expenses. Financial freedom perpetuates that one can be free of the responsibilities of money as long as he has set a life defining plan to handle his finances.
This concept does not mean that one is free of debt. However, it contends that debt can be defined as an expense. While debt is a constant financial consideration, a person who has acquired financial freedom is allowed to mark debt as a part of his expenses rather than a weight to his financial goals.
Being financially free is a misconception for being rich. While we know that rich people have a number of million dollars in account, their overhead long run costs could mean that they are not as financially independent as they seem. Therefore this concept is a concept attuned to your lifestyle and the amount of money you have to cover it. In this perspective, financial freedom is not as hard to achieve as first imagined.
Financial Freedom is Time Freedom
For other people, to be financially free is equivalent to having an expanded leisure time. The concept of time is money comes into play. In reality, a financially independent person will see that money is time. Once you are able to develop a sense of time freedom, then that means you are in a positive direction to acquire financial independence.
This principle makes ones finances less of a concern. Defined differently, financial freedom allows someone to take time on activities without trading your free time for income. It hinges on tradable assets that compound over time to cover for regular expenses. Thus, wealth is created which generates more time and money. It allows people to cut their working hours with no loss of income because of money making activities.
Achieving Financial Freedom
This idea requires a different mindset. In our classic college education, we are taught to work for money. Therefore, we put in time to work and then we get our wage. This is the famous time for money swap. However, financial freedom removes the concept of time-and-money-swap and allows an individual to make money work for them.
Achieving this status involves a different shift in lifestyle and overall mindset. While it is easy to think about having more time to invest and create a business, most office workers still find that whatever amount of time that they have should be placed in a routine. A critical step in achieving financial independence is realizing that there are ways to make better use of ones time.
To achieve financial freedom, fundamental attitudes about the concept of money need to be changed. Realizing that money is only a mean to achieve an end is one thing. Knowing that no one should be judged depending on the amount of money they own is another. Judging this freedom as the amount of money held defeats the purpose because in the end, you will not achieve this if you are not satisfied with the money that you have. Remember that this concept is also a personal perception. This perception is highly related to the level of satisfaction that money brings.
On another side of the coin, we should also remove the negative perception of money. While the saying that "money is the root of all evil" seems relevant, thinking that this is always the case will provide a repellent view about creating wealth. Always put into heart that financial freedom is a healthy endeavor as long as one feels it is ethically sound to make money. In the end, having the right attitude about money will go a long way in dealing with different perceptions of this concept. Financial freedom is ultimately a state of mind.

About the Author

Steven Miller advocates learning wealth creation and financial freedom with millionaire Jamie McIntyre who owns 21st Century Academy and it's group of companies. He likes teaching people to get some wealth education, be a success and contribute more to society.

Personal Financial Freedom: Personal Finance Budgeting

Personal Financial Freedom Mini Series: Lesson 1
The personal financial freedom mini series is designed to allow people to further their knowlege on that idea of personal finances. It should help enable a person to manage their finances in a resonably responsible way. If this is your first time viewing my website then I suggest you go back to the previous post and catch up on all that this Personal Finance Mini Series is about.
Since you are now caught up I want to get into today's lesson. The topic for today's lesson is Personal Finance Budgeting. The first step in becoming financially responsible is starting out with a personal financial budget. Absent a budget there is no way one can possibly track their income and expenses.
Before getting into what personal budgeting finances are I want to explain why budgeting is important. For this idea we will say that you have decide to startup a business, a personal financial advising firm. When establishing your financial advising firm the first thing to be done is the planning out of your company expenses. Most people would logically budget for their expenses before they began because without this financial planning you would have no idea of whether or not your financial advising firm could potentially be profitable. The next thing is to plan out your revenues. Then you would take the difference between the two and see whether things looked good or not.
This is what a financial budget is for a company and people should handle their personal finances in the same manner. When establishing a personal financial budget it is important to include everything that involves your money.
You can find Personal Finance Software on the internet. This software is made so that you can easily enter all your income and expenses and it does everything else for you.
The components in a personal financial budget include both income and expenses. Examples of income in a personal finance budget include job income, gambling winnings, capital gains, social security, tax refund, etc... Examples of expenses in a personal budget worksheet include SAVINGS, electric bill, health insurance, cell phone, groceries, books, shoes, clothes, car insurance, gas, entertainment, travel, miscellaneous.
This expense list does not include all potential expense, I'm sure you can think of others right now. Anything possible thing that you can think of that you might need to spend money on should be put on your personal budgeting worksheet.
I know that some of you are thinking to yourselves "Savings? What? Thats not an expense!" Well I'm here to tell you that savings should indeed be thought of as an expense. Each month one should personally budget for a certain amount of their money to be saved. This should not be an "if I have money left over" situation. It should be definite and as automatic as writing that check for your mortgage every month.
The most basic concept of personal budgeting is to control spending and use your money wisely so that you have money left over rather than having no money or going into debt.
After listing your income and expense on your budget worksheet you need to subtract the expenses from your income and get a Net Cash Flow for the month. The idea is to include all income and costs and come out with a positive cash flow on your personal financial worksheet. If the number comes out negative then you have a problem and your expenses will need to lowered.
Now you know exactly what a budget is and how to make one. The next thing to is run a few google searches an find a budget template to make things easier.
You need to keep a budget every month. No, you cannot simply make one plan for the whole year and stuff it away somewhere to forget about it. Our income levels change and our expenses change and these changes need to be accounted for.
To be successful with your personal budgeting plan you need to make out a projected personal budgeting plan for the whole year. Then as each month passes you can make monthly adjustments.
The other thing to do is keep a record of your actual income and expenses and compare that to your personal financial budgeting worksheet. You want to make sure that your original estimates were correct or at least close.
The thing about a personal financial budget is that it sets you up for success and helps keep you from needing to use credit cards or other debt to make it.
If you have an accurate personal financial budget then you will be prepared for the unexpected financial burdens that happen from time to time.
There should be no issues when your car breaks down and you suddenly need $300 to fix it. All is good because you have been putting money into savings each month.
This is the most basic idea of personal financial freedom and personal finance budgeting. If you can establish a sufficient level of savings then you can begin to be at ease with your financial situation.
Most people are clueless and don't realize that their unplanned/unwritten actual personal finance budget includes something like $4500 of income and $4700 of expenses each month.
Next time I will take a short break from the Mini Series and instead suggest a few personal financial budgeting software programs that are available out there.

About the Author

Jesse Chettle is a self-made Personal Financial Advising expert who specializes in giving out free Personal Financial Advice over the internet. You can visit my Personal Finances blog to learn more.