Assessing where you currently are at is the frst step in achieving financial freedom. How can you get to whre you want to go without knwing where are you currently at? Aftr you complete the exercise below you wll know what you've got to wrk with and what needs to be dne.

Here are some examples of Assets:

1. Cash

2. Real Estate (other than your personal home)

3. Investments (stocks, bonds, mutual funds)

4. Businesses

Here are some examples of Liabilities:

1. Loans (student loans, personal, car)

2. Mortgage

3. Credit card debt

-List the totals, not the monthly payments. To find out your payoff amount simply car your loan providers.

Now, take out one more sheet of paper and draw another line downt the center. On the left list all of your expenses and on the right list all your sources of income.

Here are some examples of Expenses:

1. Mortgage payment

2. Taxes

3. Car Payments

4. Food

5. Gas

6. Entertainment

7. Water, gas, electric bills

8. Home phone, cell phone, cable, internet

9. Credit Card payments

Here are some examples of monthly income:

1. Salary (after taxes)

2. Royalties

3. Business income

4. Online income

5. Real Estate Cash flow

6. Dividends

The reason I like to start with this exercise is to see where you are at. What assets do you currently have? Do you have a pile of debt? How does your income stack up to your monthly expenses?

These two pieces of paper gve you your current situation with no sgar coating added. In my future rticles and posts I will provide cncrete examples of not only how to liminate debt, but how to start crating some passive income!

The article Achieving Financial Freedom Online was Submitted by Michael Tasner through Articles.GetACoder.com network. Here's the additional information: Looking to achieve financial freedom online ? Check out my financial freedom lens online!

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