In Rich Dad, Poor Dad (Warner Books, 1997), Robert Kiyosaki defined financial freedom simply as bringing in more money every month than you‘re spending. That‘s freedom. If it costs you two thousand dollars a month to live and you are bringing in five thousand dollars a month, you‘re financially free.
It’s simply the hard stuff to make a budget. Be real and write down everything. If you spend more then you get, then you need to adjust. Even the coffee at your job needs to be listed. The 5$ you give to the lotto group at your job need to be listed. Everything you spend need to be listed.
Facing the truth could become some kind of dramatic experience. Don’t panic, you’ll feel really good and in control once you realize where you stand with your financial health.
Take action in changing what need to be change. You’ll need to choose. Set your spending according to what you get.
First, you need to know what you get in. Then you take 10% to place on the side and make it prosper. It’s more then just a security; it’s your way to become financially free without the need to work for someone else anymore. This 10% has to be place in secure investment and prosper.
Second, you need to calculate what your monthly spending is. If your spending is getting you over your income, then you need to cut in that.
Most people will do the contrary. They spend and save what is left. That will never get them job free and financially free.