Just what is broke? What is financially free? The two terms are relative. Broke or financially free to you might be something completely different to your neighbor. Here are a few thoughts:
- Broke is zero money in savings/checking, no assets to sell for cash.
- If you have debt on an “asset”, it’s not an asset. It’s a LIABILITY.
- If you’re employed and broke, then you’re just “temporarily unfunded.”
- Ever been broke, busted, and thoroughly disgusted?
- Broke means something needs to be fixed, repaired, or changed.
- What’s really broke is the way we think about money.
- Financially free means monthly passive income exceeds monthly expenses.
- Passive income means income earned if you decide to stay in bed. SWEET!!
- Do you know if/when you’ll be financially free?
- Why do we envy and/or respect people who are financially free?
Huge tip. Stop taking financial advice from people who are broke. If someone gives you financial advice, ask them about their current financial health. What results are they getting?
As of this writing I have an $80K mortgage balance and $3,200 Visa balance. I pre-pay the Visa as much as my budget allows each month. That’s 10% of my net income toward pre-payment. When that’s paid off, I’ll pre-pay the mortgage the same way. My wife Lynn and I hold title (no debt) to both our cars. Slow and steady wins the race.
I’m willing to bet you spend more time thinking about money than you spend thinking about:
- sex, (abundance or lack thereof)
- your relationship(s)
- your health
- God
It’s really a choice. Broke or financially free? What do you really want? If you’re broke and want to change it I suggest getting out of debt fast. If you’re not in debt and working toward financial freedom, teach someone how to do what you’re doing. Assuming you’re happy with your current results.
To Your Financial Freedom,
Greg Whitaker
www.debtshepherd.com
© Greg Whitaker 2011, All rights reserved
