Definition of financial freedom

When you hear the words “Financial Freedom”, what images come to mind?  For me it’s being able to choose how I spend my time without regard to cost. I always picture looking out over a balcony to a beautiful ocean vista.  It also meant a certain “number” for net worth. My perception & definition was slightly altered by a friend of mine.   I consider Gary Johnston one of my mentors not just in real estate investing but in life in general.  He teaches a class with one of my other mentors, Clyde Wilson on Financial Freedom.  There is a lot of lip service given by so called “gurus” claiming to be able to teach you about becoming financially free.  Seldom have I been exposed to any real usable education about understanding money by those gurus. Most of it is recycled “motivational” material.

Gary asks this question about wealth, “If you had a lump sum of one million dollars & spent $10,000 per month to live, how long could you live without working?” (assume that your cash is not invested but in a 0% bank account).  The answer is, 100 months or roughly 8.3 years.   Now what if you had 10 free and clear houses that (or assets)  that would pay you $1,000 each house, or $10,000 a month net, for the rest of your life, then how long could you live?  What would you rather have, a lump sum of $1,000,000 or 10 houses that pay you $10,000 a month?

This simple question has helped me clarify my definition on what is financial freedom. It has also given me a new awareness on where I choose to spend my time and effort .  My focus is to create long-term income for my clients, myself & my family.

Here is a quote from one of Gary’s mentors, the late Norbert Volney. He would ask Gary this question when he was a young boy, “What two things pay you while you sleep?  The answer is…Rent and interest.

My work is to find & acquire assets that will pay me either rent from real estate, or finding notes & trust deeds that pay me above average interest for a very long time.  If you would like me to do the same for you, please contact me & let’s see how I can help you.