Living Financial Freedom
What you should know about money: :
"Money is the measure by which success on earth is measured.
Money enables the enjoyment of the most beautiful things in life.
Those people become rich, who have grasped the simple principles of their earnings.
Money still obeys the same laws as it did six thousand years ago, when wealthy men crowded the streets of Babylon.".
The richest man of Babylon
5 rules for financial independence
These are 5 basic rules to become financially independent in the long run. Follow them and you will be able to build up and multiply your wealth.
Rule # 1) Your earnings must be higher than your expenses
* Create your personal financial plan
* Control your expenses
* Plan in a way you can save up at least 10%
* The difference between income and expenses is called cash flow
Rule # 2) Invest your cash flow in assets rather than liabilities
* Invest disciplined your cash flow month by month
* In my definition, assets are all assets that give provide you with a passive incomen
* Try not to increase your expenses or buy liabilities
* Versuche nicht deine Ausgaben zu erhöhen oder Verbindlichkeiten zu erwerben
* Sooner or later you will manage to build up a passive income of e.g. 100 €
* Now you can invest € 600 instead of € 500 in assets
* The wonderful thing is that it's getting faster and faster from now on
Rule # 3) Protect your investments from losses
* Lass Dich nicht durch höhere Erträge blenden und dabei zu riskieren, dass das Kapital verloren geht
* Do not let yourself be dazzled by higher earnings and do not risk losing your existing capital
* Do not be tempted to gain wealth quickly and thus be deceived
* Entrust your money to those who have experience in having money work for them
* Protect your present and future assets, e.g. with insurances
* Such advice is free and can be worth more than gold as it saves you from losses
Rule # 4) Ensure an income for the future
* Take timely precaution for your needs when you are old and for the protection of your family
* Protect your current income in case you can not continue to work because of illness
* Take precaution to safeguard your family in case of death
* Because an empty wallet, is a tragedy for a man who can no longer earn a living
Rule # 5) Improve your earning potential
The more knowledge we have, the more we can earn
* The one who tries to perfect his profession will be well rewarded
* For self-employed people such as doctors, tax consultants or lawyers, network with each other to share knowledge
The CASHFLOW® 101 game
learn in a playful way how to achieve financial freedom.