Everybody wants more money. Some want a lot, and some will always want a little more no matter how much they have. However, there is no intrinsic value in having money other than the future value of exchanging it for something else. Let’s put it this way; if the rent is paid and you are not hungry or thirsty and you are safe and secure, the amount of money you have is immaterial. It’s only when you need something or want something that money becomes an issue. It’s sort of like oxygen; it’s only important when we don’t have enough. Yet most of us want more money in the event we decide there is something we want or need at some point in the future. This is the inherent problem most people have with money. It’s always related to making enough money to exchange for something else.
The steps to financial freedom suggest that you’re going somewhere from here. It’s a path or destination. As in every case, you need to know where you’re going before you can get there. So let’s talk about financial Freedom and what it really means.
As in the example above, it’s like being in a state where you don’t really need oxygen. Obviously, the only time you can do that is when you die. But how can we compare that position in life with regard to money?
It seems we will always need money. Naturally, you have to have a place to live and food to eat to exist. Of course, we all want more than that in life but a little sacrifice today couldn’t give you significant freedom tomorrow. Regardless of what stage you are in your life with regard to your personal finances, your goal should be how can I achieve financial freedom and still live an abundant Life?
So let’s get started…
Financial Freedom basically means that you no longer have to trade your time for money. In other words, you have enough cash flow to cover all your necessities. Additionally, you want enough cash flow to live an abundant Life. Let’s call this your destination.
Now that you know where you’re going to go, let’s figure out how you’re going to get there from here. Thus, we will outline your steps to financial freedom.
Before we get started with that, let’s make it very clear on how not to get there. You don’t want to continue to acquire goods on credit. Going into debt moves the destination further away. Sometimes, debt is necessary but you want to be free from debt early on in the process. When this occurs, you can take the money that you earn and build wealth instead of paying bills. In other words, make your money work for you.
For example, buy a car with cash. Now you have transportation that can earn you money. Buy a duplex and rent half of it to help pay off the property. Pay down your debt first and then use all the extra money to invest for some relatively passive income.
During the years that you’re most productive, you want to be able to place the most amount of your income into income producing assets. The best way to do this is to have as little debt or daily expenses as possible. Invest to produce passive income and reinvest that income to create a snowball effect.
Don’t try to compete with your neighbor. They don’t care about your car or your house or how cool you look. Make your money work for you until you have enough passive income to live comfortably for the rest of your life. Follow these steps to financial freedom and live an abundant life by design.
Along the way, reward yourself but don’t buy anything you don’t need. The better you get with money the more likely you’ll be able to buy businesses that are failing at a good price and then turn them into successes for more income. This is not chasing money. This is using money the proper way to become financially free for life by following these simple steps to financial freedom.
As I said in the very beginning, some people can’t get enough money. It almost becomes a disease or at least a liability. Keep your eye focused on your destination. Live comfortably and secure. The ultimate freedom in life is to not need or want anything. Live in the moment and enjoy the fruits of your labor. It’s often been said that money can’t buy happiness but it absolutely can buy you options. These options you decide in the moment and that is the ultimate freedom to choose; what you want, when you want it.
