Assets put money in your pocket. Liabilities take money away from you. Once the income from your assets covers your needs, you are financially free and are no longer at the mercy of your employer and your next paycheck.
The process to become financially free is:
1) Invest in Assets
2) Eliminate Liabilities
3) Until the income from your assets covers your needs.
Here's an example of an asset.
Monthly rent is $800. Monthly expenses add up to $600. Every month, you put $200 in your pocket.
Liabilities take money out of your pocket.
Any liabilities that you don't really need are unnecessary burden that you carry every month and pay for with your hard earned paycheck.
On average, a Canadian household is $12,000 over budget per year.
Cutting unneeded liabilities will help you reach your financial freedom goal.
Here are some examples of liabilities, which take money out of our pockets:
credit card debt
home phone line
ink re-fill service
lawn and snow care service
weed removal service
wine delivery service
window cleaning service
Wealth is a measure of how long you can survive for, without a paycheck and without changing your lifestyle.
Make a decision to become wealthy, by
Here's a result of a survey showing why Financial Freedom is important to many of my readers.
What's your why?