Get Financially Free - Part 1!
We know that money is a great tool and that God smiles upon us while we work hard and smart, to make as much as possible, in the quickest time frame possible, for His glory.
By the age of twenty-one, Samuel had achieved financial freedom. We are not talking about being debt free, but financially free, meaning you can retire for life should you want to.
Stop trading your time for money
In Robert Kiyosaki’s book, Rich Dad Poor Dad, we see how most people work for money, when they should be making money work for them. Money is a terrible master, but a great servant. This is a mind shift for most people as it is something that is not learnt in school. Let us begin by explaining the difference between active and passive income.
Active income is the kind of income we are all familiar with. You work once and get paid once. You are trading your time for money. Passive income is where you work once but get paid indefinitely. So if you have an income of say £3,000 in monthly passive income, you will receive it without doing anything for it. It’s automatic.
Samuel is not interested in active income and from the age of seventeen entered into the world of passive income. It completely changed his life. He realised that the goal was not to be rich, but to accumulate passive income. He worked out what he needed to live on, and then set out to earn that figure in passive income.
The formula for financial freedom
The formula for financial freedom is really simple. Work out how much money per month you need to live on, and then build a passive income that covers your monthly expenditures.
So if it costs you £5,000 per month to live on, then work up a monthly passive income of £5,000, and you will be financially free.
Passive Income ≥ Living Expenditures
(Passive Income is equal to or greater than you living expenses).
So the first thing that we will do is work out exactly how much it costs you currently to live. You may already know this, you may need to go through your bank statements. Work this out below:
Utility Bills = £
Car costs = £
Rent / Mortgage payments = £
Gifts = £
Going out = £
Food = £
Tithes / Donations = £
Clothes = £
Travel = £
Emergency = £
Debt payments = £
Other = £
(This total amount is the figure of monthly passive income that you need) So, while we leave you to do that, be sure to read next week's blog where we delve deeper into how some people have become 50% closer to financial freedom when learning THREE KEY STEPS TO FINANCIAL FREEDOM within 24-hours.
Prepare yourself... it's some good stuff!