Financial liberty is possible. Unfortunately, it is often not achieved – much like our goals and dreams instructions because we don’t motivate enough, believe it is likely, or work hard enough to do this. Just as detrimental, we turn comfortable with mediocrity, allow other individuals to dictate our options, become unwilling to put in the time and effort required to achieve our aspirations, and never learn and put into action the necessary steps that result in economic independence, time freedom, inerte income, and our total potential being realized. Wanting for financial independence is perhaps step one, but we also need to alter our thinking, learn how to achieve it, and be willing to put in the performance necessary to obtain it.
Economic independence is more of an attitude than a dollar benefit in a bank account. It is much more about not worrying and possessing time freedom than it truly is about being capable of constantly paying the bills. It is concerning overcoming fear and getting risks as much as it is concerning saving for retirement. And economic independence is all about passive revenue, not the balance of a FURIA or 401(k). Unfortunately, many people do not think this way: and this is made evident in the people who get excited about payout raises and promotions, build the typical employee mindset, and also live far below their particular potential because they are unwilling to take risks, think and behave differently, and understand the crucial laws of success that will also produce financial freedom.
Thankfully, we can change! Yet even an understanding of the crucial steps below is not adequate – it is when understanding and consistent action are usually combined our goals, wishes, and financial independence will likely be realized.
1) Never Autumn Victim to the Typical Personnel Mentality: Stop thinking about 9-5, manager and personnel, weekends and holidays away from, that is not my job or responsibility, etc. Doing more than what you are paid to do won’t only result in success on the job but actually will undoubtedly carry over to other aspects of your life. But if you act like you continually trade time for income, believe that job security is undoubtedly security, become content with mediocrity and being average, complete just enough to keep your job, as well as think that a pay elevate or promotion is the way to your problems… then the sole hope you have is that your personal IRA and 401(k) can have sufficient funds to keep you alive after you’ve given 40+ years of your life to a corporation. And by all standards, that isn’t my definition of financial liberty (or happiness).
2) IRA’s & 401(k)’s… Not a Recipe for Financial Independence: I find it ironic that our lifestyle successfully convinces us that our family’s financial future will probably be taken care of by handing our money to unidentified (and often greedy) buyers and companies who fundamentally are only interested in making a penny now – not inside 40 years. And yet, what is more unexpected is the masses of people who believe that financial independence will be obtained by devoting (a better word would probably end up being enduring) 40+ years of existence to a company, and feel that an IRA or 401(k) will be the solution to their retirement living and financial problems. All those who have ever achieved financial flexibility have independently created that themselves, took risks, and were extremely proactive: these people never depend upon a business or a retirement account to reach their goal completely.
3) Leaving Your Job to Start a profitable business is Not the Answer: Seeing that a job, being an employee, and trading time for money probably produces financial independence is the first necessary change in the thinking process we must obtain. However, you will not fall victim to the idea that being superior, starting or running your company, or even being a buyer is the solution. Financial liberty is not defined by having considerably more power or more giant fork-out checks – it is tested by time freedom, not any financial worries, being often the manager and investor instead of the boss, and especially developing passive income. The purpose is not to become the superior; the goal is to be the dog owner and hire a superior to do the work. The purpose is not to earn considerably more to be able to spend more but take excess money and buy rising assets that make you funds.
4) Passive Income is vital: Job security is not just like financial security. Independence inside your job is not even just like financial independence. And buying and selling time and effort for money is the specific opposite approach, as earning profits works for you. The goal in every one of your pursuits, and the step to achieving financial freedom (hopefully long before the age of 65), is to take every added dime and invest that into assets that allow you to money on a continual month-to-month basis. Whether it is cash flow coming from properties, interest from addresses, or even profits from the performance of others from your organizations – the goal is always to create and buy assets that will continually bring in a monthly recurring income.
5) Change Your Thinking process About Retirement: Our culture’s unfortunate perception of retirement life entails working hard for 40+ years, trading our returning to money in hopes of campaigns and pay raises, relying on strangers to manage all of our retirement accounts, and cutting down pleasure now in hopes connected with living our dreams with years to come. Truthfully, I do not want to do this type of retirement life. And because of this, I am willing to put in whatever energy necessary, take risks, adjust my mentality, and learn to implement the principles that will end in financial independence – sometime before I reach the age of 70.
6) Recognize What Continues You from Achieving Financial Liberty: There are multiple reasons why people do not achieve their wishes and goals in life, which can essentially be conclusion into three categories: anxiety, mediocrity, and inaction. Can you fear taking risks and maybe failing? Do you fear as you think you lack the necessary understanding or abilities to be successful? Have you been content with mediocrity and getting average? Is ‘just having by’ or ‘that’s very good enough, or ‘certainly not worth its common feelings (and thus actions)? Have you been unwilling to put in the effort needed to achieve success? If so, economic independence will be given up, and the result may be a perfect life – but perfect is the enemy of fantastic!
7) Being Rich is not the Same as Being Financially Indie: True wealth is not dependent on the size of a bank account, the house we live in, or the automobile we drive. True riches is a state of mind more than a costly actual dollar figure. The individual who has no financial worries or maybe obligations has assets along with employees working for them, has generated a continual monthly passive cash flow, and has resources sufficient to make time freedom and be able to help others – this is correct wealth (regardless of how very much income or profits seem to have been
made). Comparatively, the individual who has made millions of dollars and memory sticks the fanciest car along with living in the most lavish mansion is not wealthy at all in case their expenditures exceed their cash flow, they are trading time for dollars, they live in fear of their very own debts, their lives exhibit being ‘rich’ only to get caught up with the ‘jones,’ they are established, settled in the ‘rat race’ assured that the next promotion can produce more time freedom (which never happens). Most important – they have no regular monthly residual income. Financial self-sufficiency should be the goal – if she is not rich.
8) Understand That it’s Achieved by Implementing the Laws of Success typically: Because essential as all the concepts above are, the reality is that no goal or fantasy in life is ever accomplished unless and until all of us implement the laws which are foundational to all success. We have first to desire financial self-reliance, believe it is possible, have belief that we are capable of achieving this, change our mentality (as described above) and believe big, overcome our worries and doubts, work hard each day in pursuit of our goal, and not quit until it is achieved.
The goal should not be to obtain rich in life; it should be to complement your life. Achieving financial self-reliance is much more than not worrying about finances, creating time independence, having passive income, as well as being in a position to live your dreams and help others — it is about reaching our full potential and not allowing others to define or figure it out.