How Tracking 4 Numbers Will Create Financial Freedom

You might think that creating financial freedom would involve creating a business, or making a lot of money…but the actual work that you need to do to create financial freedom is to track 4 numbers – Cash Flow, Passive Income, Net Worth and your Financial Freedom Account.

I learned this skill initially from T Harv Eker’s Millionaire Mind Intensive seminar.

Then I added 2 more numbers from Robert Kiyosaki’s Cash Flow game, per the advice of 1 of my financially friends (who was only 35 yrs old).

I did what they told me and it works…almost like magic.

Trust the great teachers who have more money and freedom than you and just do it!!!

Cash Flow

Cash Flow is the first number we track to create Financial Freedom. It’s like the blood flow of your finances and your money, and will show you right away if you have healthy or unhealthy financial habits.

I started tracking it when I played the Cash Flow boardgame created by Robert Kiyosaki, the author of Rich Dad Poor Dad and The Cashflow Quadrant.

To calculate Cash Flow, you need to know all of your income and all of your expenses.

Cash Flow = Total Income – Total Expenses

Cash Flow Example – Negative

For example, pretend my income is below:
$3,000/mo from my job

Pretend my expenses for this month are as follows:
$150/mo 401K
$150/mo savings/investing
$500/mo taxes
$800/mo rent
$300/mo groceries
$990 for airfare and hotel for a seminar
$100/mo credit card 1 payment
$100/mo credit card 2 payment
$220/mo line of credit payment
$200/mo back rent
$50/mo phone bill
$50/mo internet bill
$100/mo car maintenance and gass
$50/mo bike maintenance
$100/mo miscellaneous

TOTAL EXPENSES
$3,860

So in this example, my Cash Flow would be $3,000 – $3,860 = -$860

This Cash Flow is pretty much what I was doing back in 2010, when I was attending seminars on the mainland, and had to pay for the tuition and for airfare and lodging.

Since the Cash Flow is Negative, you can tell that my finances were not healthy, and that I was spending more than I was making.

Where does the extra money come from? CREDIT or SAVINGS/ASSETS or SOMEONE ELSE IS GIVING MONEY

Someone with Negative Cash Flow either has rising credit card/line balances or increasing loans, or their savings is decreasing or they are selling off their assets, or someone else is giving them money.

In my case, I was racking up consumer credit card debt.

Cash Flow Example – Positive

For example, pretend my income is below:
$3,200/mo from my job
$100/mo from investments

Pretend my expenses for this month are as follows:
$160/mo 401K
$160/mo savings/investing
$280/mo 401K loan repayment
$550/mo taxes
$1,200/mo rent & internet & phone & groceries
$225/mo Personal Loan payment
$163/mo car payment
$80/mo gas
$200/mo Life Insurance
$100/mo Charity/Give
$100/mo miscellaneous

TOTAL EXPENSES
$2,818.00

So in this example, my Cash Flow would be $3,300 – $3,218 = $82

This Cash Flow is pretty much what I was doing back in the beginning of 2016, when I was about to pay off my last personal loan debt in April of that year.

Since the Cash Flow is Positive, you can tell that my finances were healthy, and that I was spending less than I was making.

As you can see, I’m not overspending on trips or seminars.

Also over the 6 years since 2010, I paid off most of my debts by making regular payments, consolidating credit cards into personal loans to lower interest rates, and also borrowing from my 401K.

Passive Income

Passive Income is the key to becoming Financially Free.

Net Worth

Financial Freedom Account

About Mey Duldulao

Back in 2011 I had over $30,000 in credit card and line of credit debt, was living paycheck to paycheck and was stressed out over my lack of success in my financial life.

In April of 2016, I became debt free and had a monthly passive income stream. I quit my job on December 23, 2016, and started doing my dream work of mentoring others on what I did to create the freedom to quit my job.

In 2017 we bought our first condo in Waikiki, and we went on 5 weeks of vacation (including a 7 day cruise to the Mexican Riviera)!!!

I spend most of my time doing what I dreamed of for years, spending my days with my son Jordan and my husband Jomel, enjoying motherhood and being a wife. I also enjoy researching Financial Freedom and sharing what I learn with my clients and on my blog.

If you want to learn more about how I can help take back control of your money and your time, then CLICK HERE, watch the free video and get started!