Financial freedom and independence is realised through financial intelligence – i.e. your ability to create assets that generate and control cash flow.
You can only become financially independent when the income from your assets exceeds your monthly expenses. What most people don’t realise is that the salary mentality leads you to financial slavery because you work to pay more taxes, but the rich and successful people pay less tax.
Take Away: As an employee, you pay more tax to government that your employer – i.e. the more employees an employer has, the less tax he/she pays. Think of starting a business to create cash flow and jobs so you can become financially free.
Key Financial Intelligence words to note
- Income
- Expense
- Asset
- Liability
- Cash Flow
The most important of all these words that has made people successful and financially free are Asset and Cash Flow, since they work to put money in your pocket consistently. On the other hand, Liability and Expense take money from your pocket and leads you to financial stress and poverty.
Creating a Cash Flow
What are your Assets?
- Intellectual property
- Talent/Hobby/Passion
- Acquired knowledge/skill /craftsmanship
- Landed property if it can generate cash flow
- Your network of friends/family
The importance of contacts and networks is to create value and impacts which will in effect lead to generating cash flow, so build a very good circle of friends. The people and environment you play in has a huge impact on the extent to which you can be successful.
Please, kindly use the links below to follow my page on FACEBOOK and YOUTUBE channels for more MoneyTalk and Videos.
https://www.facebook.com/Jerry-JAfolabi-107737420863286/
https://www.youtube.com/channel/UCz4Wrr3FkmnVrL3V1R44Y0w
