2008-03-21

Financial Freedom


What does financial freedom means to you?

Can you define financial freedom clearly?
(Are you going for something you don't have a clear idea what it is all about?)


Clarity

Leads to
Power

(Money & You)


According to Rich Dad, financial freedom is:

The number of days you can survive without working.

Notice the beauty of the definition?
No money in the definition (at least not a single word about money mentioned in the definition).

But, in order to survive in this modern world, you’ll need money anyhow, be it your own money, or other people’s money.

How long you can survive?

1. How old are you now?
2. How many years you predict you will still live on Earth?
3. What are the monthly expenses to maintain your current living standard up to the day you’ll be living planet Earth?

Do a simple calculation and you’ll know how far you are from financial freedom.

For example, you need $5,000 in order to survive monthly (maintaining your current lifestyle), and you are 30 years old now.

You expect to live up to 70 years old before you go back to heaven.

So, in order to survive without working until 70 years old, you’ll need

$5,000 * 12 * (70-30) = $2,400,000

(simple calculation without considering inflation)

Not to say 40 years, would you be able to survive 4 years without any income from now on?

Another happier part is, what if God decided to give you 10 more years (live up to 80 years old) on planet Earth because you are a very good person? ;P


当你对金钱、财富和人生,还有经济运动的规律一无所知的时候,你凭什么能够在经济上取得成功呢?(未来的财富 Currency of the Future)