adsense code

Sunday 16 April 2017

Financial freedom



Robert Kiyosaki the author of Rich dad Poor dad describes the concept of the "Rat Race” as a self-defeatist cycle:  an employee works hard for an employer to receive a raise or a promotion and as their income increases, their expenses increase as well. As the employee’s debt increases, he becomes further tied to their job and more reliant upon their paycheck. Furthermore, they are forced to work harder for their next promotion to offset their debts.

Now all off already trapped in this rat race. We have increase our debts in the form of Credit Card, Personal Loan, Car Loan and Home Loan. How we get out of this rat race and achieve the financial freedom. This is when your passive income i.e. income generated by your own saving/investment, exceeds what your expenses are. Robert Kiyosaki calls it "out of the rat race".

Once financial freedom is achieved, you don’t need to work for money, you have all the time you need to do whatever you want. That could be continuing to set new lifestyle goals and objectives to achieve them, or service work, whatever.

We can achieve financial freedom with following action points:

  • Start Saving and Investing Early and Regularly
  • Spend At least 30% Less Money Than You Earn
  • Never default on Bills or EMI
  • Create Emergency Fund
  • Get Life Insurance, Term plan only
  • Pay Off Your House Loan Early
  • Invest on yourself
  • Start second source of income


2 comments:

  1. Great content material and great layout. Your website deserves all of the positive feedback it’s been getting. home finance pakistan | bank al habib car finance

    ReplyDelete
  2. I always wondered, can I apply for a car loan online? Now, I have come to know the right procedure, so I am feeling awesome, because I always wanted to buy a new bike for me.

    ReplyDelete

Real estate investments

 In India, our old people have only two options for investment. These are Real State (house or Plot) and Gold. We will talk about gold some ...