“Come up with $150-200 extra per month”, says Robert
Kiyosaki in his book Cash Flow Quadrant. If you can’t, he goes
on to say, your chances of achieving financial freedom may only be a
dream.
You find the same idea in George S Clason’s classic book The
Richest Man in Babylon. The first story from this book says “You
have learned your lessons well. You first learned to live upon less
than you could earn”.
“Spend less than you earn.”
This may be an unwelcome message, and it may be difficult for you to
see how to achieve it. Nevertheless, it is the basis of most strategies
to achieve financial freedom.
Why is it so important? The reason is that you need to make a regular
cash surplus so you have money for investment. It is these investments
that will bring you your financial freedom. Robert Kiyosaki calls this
surplus ‘positive cashflow’.
If you ever play Kiyosaki’s financial education game Cashflow
101®, you will find that your main task is to gradually build
up your positive cashflow from investments. Eventually (in the game)
you can give up your day job because you can live on your investment
income.
But it all has to start somewhere. And that somewhere is to spend less
than you earn.
What’s the alternative? Well maybe you will inherit wealth, or
possibly win the lottery. Or perhaps you own your own home and some day
you can sell it and get a pile of cash.
Or maybe you’ll decide that the best way forward is to somehow
find this investment money. For a few ideas on this click
building positive cash flow. |
