Cashflow

The Rich Dad framework. Income, expenses, assets, liabilities. Watch your freedom ratio climb as asset income grows.

You're free when assets pay your bills, not when your salary does. Salary stops when you stop. Assets don't.

── Income

Job income (monthly, after tax)

── Expenses

Living expenses (monthly, excludes liability payments)

── Assets

An asset puts money in your pocket. Rental property, dividend stocks, business equity, royalties.

Name

Current value

Cashflow / mo

── Liabilities

A liability takes money out of your pocket. Mortgage, car loan, student loan, credit cards.

Name

Balance

Payment / mo

── Assumptions

Investment return (annual nominal)

S&P 500 30-year nominal average ≈ 8%

Safe withdrawal rate (annual)

Trinity / 4% rule. Conservative ≈ 3%.

── Monthly

Job income

$5,000

Asset income

Total income

$5,000

Living expenses

-$3,500

Liability payments

-$0

Total expenses

-$3,500

Net cashflow

$1,500

── Freedom

Freedom ratio

Asset income ÷ total expenses. You're free at 100%.

Time to financial freedom

22.3 years

If you keep saving $1,500/mo at 8% until your portfolio hits $1,050,000 — the 4% of expenses target.

How this works:

Assets pay you. Liabilities cost you.
You're free when assets pay your bills, not when your salary does.
The 4% rule (Trinity Study) says you can withdraw 4% of a balanced portfolio per year and almost never run out over 30 years.
To replace your expenses you need ~25× annual expenses invested.
This calc assumes constant expenses (real life: they grow with inflation; income usually grows faster).

Directional, not advice. Run YOUR numbers.