What is Financial Freedom

Welcome to REI TV. Today were gonna be talking about what it actually means to become financially independent. Like, what’s the definition?
And how do you do it? And can you get there faster? So, what is financial freedom? Well I’ve traveled all across the country. I’ve asked
tens of thousands of people. You know what they always say? Well Kris is to buy what
you want, and when you want, and how you want. And you know what? That’s the fluffy answer.
• Financial freedom. How would you define that? What is that?
Uhm…Being able to support yourself on your income. (Kris: Okay) Yeah, and be able to put money aside for retirement and not to rely on anybody else but yourself.
o No debt. I think homeless people are pretty financially free. (Kris: Why?) Because they
don’t owe anyone. And they don’t pay for most of the things that they get. (Kris: Alright.) So, let’s leverage a more sophisticated and technical definition on what residual
income actually is so that you know what the goal is. Very simply, financial freedom is
a residual income which exceeds your expenses, pretty simple right? If your number a $6,000 a month or $8,000 a month or $3,000 a month. Well you know exactly how much residual income you need to create, to be able to cover whatever your monthly expenses are.
So let me give you an idea of how you can create a residual income, for example, through real estate so we could make this pretty concrete. Let me kind of pull up here. On this website, there are some recent deals that I’ve transacted. So, for example, if you take a look at this
house in Indianapolis, that’s one of my cash flow markets, and you’ll see there’s
an $89,000 house. It rents for $950.00 a month, the payment, interest, the taxes, the insurance are $465.00 which means there’s a monthly cash flow. A net cash flow $379.00 a month, that rate there that is a rocking cash flow. And that’s also pretty standard for what
I do. Now, I have other markets that I go into that I talk about and they’re my growth markets, my equity growth markets. So, for example, uhm… Florida, in the Orlando area, Las Vegas, on these houses you’re gonna notice, oh! $199.00 cash flow, $133.00 cash flow. When I go into these markets, it’s really for growth, but I still need that positive net cash flow so that I’m getting that HUGE, HUGE potential upside, but I’m still cash
flowing along the way. Let’s talk about how most Americans actually approach, financial freedom. We get into this fear of debt mode, scarcity; I need to have
things paid off. Well, it sounds like a good idea. I have a car payment, if I paid off
that $20,000 loan, I would save a $450 month payment. Seems, to make sense, well the $20,000 you put there, I suggest, put it into an asset versus on a liability. What is real estate
gonna do for you? Well, real estate can produce a cash flow that can eventually, not only
just address the liability’s monthly payment, but it can actually paid off, and actually
leave you an access. So, my approach for retirement and to eliminating debt and the reason why I leverage real estate when it comes to financial freedom, is that if I am gonna trade dollars for hours initially and work hard and save hard, for heaven’s sakes, don’t throw
at your debt. Throw it at assets which can eliminate your debts and actually leave you a surplus to continue investing. And that’s how you get financially free.
From what I’ve just shared with you, I hope maybe now you think financial freedom might be more than living in some penthouse, travelling all across the world, being a multi-millionaire, winning the lotto. Financial freedom really is very simple. It’s about having assets
that outweigh the liabilities.It’s where your residuals equal or exceed your expenses. And that’s reality, that’s realistic. That’s something you can do if you have
the proper plan and especially, if you have a real estate. As always, thank you again for watching. Look forward to next Wednesday, when we release our next video for you. And be sure to subscribe so that we can notify you and let you know
every single time we add more free value into your life.

12 thoughts on “What is Financial Freedom

  • Good Info…i invest in st Louis I have over 20 properties .however banks in my area do not lend in tough inner city areas..

    big problem…what to do

  • What is your suggestion for a recent college grad with a lot of tuition debt? It seems from watching the video you would suggest paying minimum payments on tuition, save money from you salary, and invest in assets in the form of real estate which can then generate you cash flow to help cover expenses such as the tuition expense. I've been trying to figure this question out for myself. I could spend 2-5 years and dump nearly all my income into my tuition or reinvest my money in real estate. My only concern is that its putting me even further back debt wise which is a little unsettling. I suppose that's what you have to do in order to make money. I look forward to your assistance. Thank you.

  • I'd strongly suggest to pay off consumer debt since it creates risk and has an excessive interest rate. just flip it around and the math stays the same: would you borrow 20k on your car to invest? of course not

Leave a Reply

Your email address will not be published. Required fields are marked *