Financial Security Vs Financial Freedom


Semantics, semantics, semantics. What is
the difference between financial security and financial independence. Or
the difference between financial independence and financial freedom. The
reality my friends is that there’s different levels of financial success.
And I want to break it down for you. And I want to help you understand some of
the math behind it because once you wrap your head around this math, it’s going to
help take your goals that can feel nebulous on money and bring it straight
home. I can remember it like it was yesterday.
That second property. You know, the first one I was living in for free basement.
Brought in some rent, paid my mortgage. But the second property felt like my
first real investment. I wasn’t living in it. And I was getting over $500. It was a $600 month cash flow. And being poor and deeply in debt and
frustrated and starving is what it felt like just in my soul. That extra $600 was
like the greatest ray of hope. It was so meaningful for me. I came to find out
that that would be the home that would really inspire my second, my third my
fifth, my 10th my 20th home. My hundredth home. My 500th home. And now I’m buying
hundreds of homes a year. And I’m building all this wealth. And part of
what got me there was really understanding what does financial
freedom really mean? Today, I want to share with you 3 definitions I think
it’s going to be very very useful for you. And the first thing I want to do is
I want to talk to you about financial security. There’s a lot of people out
there that really want to taste security. They don’t want to feel like they have
to worry about money. They don’t have to worry about their bills. Financial
security however is very different than independence and it’s very different
from freedom. Financial security is about covering your main bills. And when you
think of your main bills, what comes to mind is like your mortgage payment, your
car payment, your phone payment. Its food, its taxes, its insurance, its basic
clothing needs. Maybe even some indulgences. Those are basics, right? And
if you got your basics covered, let’s just assume for a moment that you were
making $50,000 a year. But all of your expenses actually came out
to $2,500 a month. So I’ve got my house payment, my car
payment, my clothes all my main things. If you had a residual income that produce
$2,500 a month, let’s just say, “Hey, Kris. I bought 5
homes. If those homes were producing $500 each or $2500 a month, then if these
are my expenses and this is my income, then they would cancel each other out.
And I would be able to say “I’m financially secured.”
Like if I lost my job, it’s not that it would be doing great financially. But I
wouldn’t lose my house. I wouldn’t lose my car. I’d be able to put food on the
table. Security is a part of financial freedom but it’s just a small part. So, I
want you to understand. I want you to know what are your main bills? What do
they actually come to? Then afterwards comes financial independence. Financial
independence is different than security. You need more money to be independent.
Being independent means that you have replaced your job income. And so you’re
now independent from the working atmosphere. Which another way of saying
that is I don’t have to have my job anymore. I’ve left my job and I have all
of the money replace that I used to get there. It doesn’t mean I’m rich. It
doesn’t mean I’m living the lifestyle I want. But it does mean that if I’m
working it’s only because I what? It’s only because I choose to work. So, if you
were making $50,000 a year. And that $50,000 a year comes out
to basically 4,000 a month, then for you financial independence would
occur when you have $4,000 a month coming in residually.
Security covering all your main bills. Independence is covering all of your
income. But after you become independent… So, when I tell people that I became… When
I used to help people I retired at 26. The reality is that what I had achieved
was security surpassed it independence. And I was already on my way to financial
freedom. And I’ll tell you why in just a second.
Financial freedom is different. Said in a very simple way. The lifestyle that you
want to live that you can’t afford right now is what happens when you become
financially free. And there’s a monthly price tag for it that I want you to be
able to identify with. You see for me, my bills were around $3,000 a month when I
quit my job and I was bringing in $12,000 a month. So, was I already
independent? Yes. In fact, I had $9,000 more. And it allowed me
to live more of a dream lifestyle. But since then a lot has changed. Financial
freedom for me has more houses and more cars and more will travel and just doing
more of things. And we can reverse engineer all those things. Like if this
is a multi-million dollar house. I can figure out what the payment on it would
be. And I can start figuring out, “Oh, if I wanted to have a house in Monaco and if
I wanted a private jet and if I wanted my house over here,
I wanted to do a bunch of different things with my life”, then all of a sudden
my financial freedom might come at a cost of $70,000 a month. And just try out
for a moment that 70,000 a month is a different number than 4,000 but it’s not a lot. You got to get a lot in a little out of your head.
Because it’s just a mindset game. You got to get… Whatever seems a lot, you got to
get comfortable and basic and easy to achieve and acceptable so that you can
raise your financial barometer and actually go out and get it. My friend,
understanding the difference between security independence and freedom, I’m
inviting you to take pen and paper and do an exercise a little bit later and
sit down and ask yourself, “What are my bills and how many deals do I need to do?”
If it’s 500 a deal, “Then how many deals do I need to do to achieve
security? How many deals do I need to do for independence? This is 8 houses. “How
many deals do I need to do to live financial freedom with $70,000
a month?” Or basically have a million dollars a year in expenses. Which
is private jet and private homes and doing all these amazing things. It will
come down to a certain number of homes. Here’s what I want you to gain from
today’s video. There is a science to wealth. There are rules to wealth. And
there’s got to be a place where you can go to learn from the millionaires and
billionaires that can teach this to you. I’ve been fortunate to have some of the
most amazing mentors in my life. And when I look at how real estate, helped me
achieve security independence and freedom. That is a gift that I want to
pass on to you. I’m going to tell you exactly where to find it. If you click
the link in the description below, you’re going to learn about one of my favorite
financial events. It’s a multi day workshop. It’s a game-changing experience.
It’s called unleash your financial destiny. And this experience is designed
to teach you everything you need to know about real estate, money the rules of the
wealthy, the mind set. Everything that’s gotten me to where I am that I’ve been
able to use to help other people where they want to go. And you know what? You’re
going to want to get in a plane, hop in a car and find your way to one of those
next events and you’ll find it right on the calendar if you click the link in
the description below. Heck, even talk to a member of my team. It has been a
game-changing experience now,for over 5,000 people that have experienced that
event with me. And you just might be the next one.
So, if you’re ready for your financial mentor, if you’re ready to learn and grow,
if you’re ready to get serious about learning the rules of the wealthy, come
join me at that next event.

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