ideal-house.org - This question will invite us to manage personal finance. That is managing income, managing spending, to managing assets and debt. Managing these three things will bring us to feel financially independent.
Actually, what does financial freedom or financial freedom mean? According to the author of the book about Robert Kiyosaki's wealth on Richdad.com site is a condition that is more than just having money.
Robert said, for someone to experience financial independence, they need to change the habits that are being done now to become financially desirable.
Being financially independent is a process for developing, emotionally and spiritually strong to be successful and happy according to one's size. In other words, financial freedom does not only have a lot of assets and assets. However, one measure is that someone can achieve something they want.
The question is, have you had financial targets in the short or long term? Are you debt free? These two questions determine you know whether you are now financially independent or still not financially independent.
As collected by HaloMoney.co.id, here are a number of signs of being financially independent or vice versa: still need to struggle to become financially independent people.
1. Assets are greater than debt
Try calculating the value of all assets that you have such as houses, cars, savings, investments, to emergency funds. Compare the value with the debt value you have, such as mortgage loans, KTA debts, to credit cards, and debt with family.
If the asset value is greater than debt, then your overall financial condition is still positive. This is one sign that you have experienced financial independence. But on the contrary, if the value of your debt is greater, a sign that you have to arrange your finances is more disciplined by reducing debt and increasing assets.
2. Assets provide income
Do you have assets that provide income? If so, it means that it has begun towards financial independence. For example, assets in the form of investment. If the asset regularly provides additional income every month, it means that your investment has developed and helped to achieve the financial goals to be achieved.
Or assets in the form of land, can it be used properly by making it a side business. If you have produced a routine every month, then you are already on the right path to financial independence.
3. Invest and protect
Investment and protection are also a sign that you are financially independent or not. Don't just invest, if not accompanied by protection. Without protection, investment will not be able to finance risk. Financial planners always recommend that you complete financial management by protecting yourself and your family by having an insurance policy.
The most important insurance is life insurance to protect your risk as a breadwinner if you die. The next insurance that is mandatory is health insurance to protect you and your family if you experience illness.
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