What Is Financial Freedom – The Steps To Achieve One
What Is Financial Freedom – Can I Achieve One?
By Sam Ammouri
Even though more than 375 million people live in a country that stands for freedom from political and religious tyranny, many are not experiencing freedom in their financial state And still asking what is financial freedom and what are the steps to achieve one?
Many are enslaved by debt and held captive to their 9-5 job that keeps them from earning the kind of income that could help them build the financial security that comes from having more wealth. Financial freedom is your right. But like any “right”, financial freedom is not an automatic right–it is a right that you must choose and fight for.
Let me assure you, you will not find the same trivialized and re-worked steps to financial independence that you can find in a hundred other websites. Hopefully you know what I mean. Many traditional web posts on the subject of financial freedom advise you to…
- cut your expense
- pay yourself first
- invest wisely
- set aside 15% for retirement
- get out of debt
- pay the lowest legal amount in taxes
- insure yourself and protect your assets
Unless you are just starting out you probably know those things. So let me say, yes…be prudent and do all of the things traditional financial experts recommend to build your wealth; and you will build financial freedom along the way.
Here are some of the most important steps to achieve financial freedom
1- Acknowledge the Potential in Yourself to Create Wealth
All of us have been given the “power to create wealth. “You were born rich.” Your power to create wealth is found in the gifts and talents you were born with. The surest way to wealth is to follow your gifts, strengths and passion to start a something.
The possession of a significant income that they control is what separates self-made millionaires from non-millionaires. 77% of all self-made millionaires acquired their wealth with business endeavors.
The simplest way to start a business these days is online. With online business models, you don’t need a lot of start-up cost, you don’t need to put employees on your payroll and neither need to lease a building. In fact, starting your own business is as easy as it can get.
- 1. Build a micro-niche website
- 2. Monetize your website with products and services your visitors want
- 3. Drive traffic to your website
This is some of what you’ll be taught here for your financial freedom
2- Adjust to Become Self-Reliant
Two points I want to make with this step to financial freedom are
One) – it is way better to depend on yourself for income than it is to rely on an employer or anyone else for that matter.
And two) it is way better to rely on yourself for investment advice than it is a commission sales dependent.
I spent enough time around the internet to know that there are thousands of internet marketing scams out there. Some are promoted by heartless pirates with a promise to quick riches with a few simple clicks of a button. Believe me, if it were than easy, everyone would be very rich by now.
Believe with nothing as important as your own personal wealth to any internet marketing company. The best proven way to become wealthy is to learn how to create multiple streams of income and then learn how to invest in a well-diversified portfolio of growth stocks, income producing assets, bonds and cash equivalents with a trusted source..
3- Establish A Practical Plan
Anyone that is serious about financial freedom should have a plan to get there. But if you are like most Americans you probably don’t have one. Without a plan you could find yourself living from paycheck to paycheck with little to no savings and piles of debt.
Begin your financial plan by listing your goals. Goals are like the compass for your brain–they help to keep you focused and give you a clear path to achieving the results aspired in your life.
To be effective, your goals must be personal, they got to be meaningful to you. Be sure to write your goals down on paper and review them at regular basis. Set your goals for:
- Setting aside $12,000 for an emergency fund
- Saving a few months of living expense
- Eliminating or reducing credit card debt in a certain time
- Saving for a newer car
- Setting aside retirement money
- Saving for a family vacation
Then you need to establish a budget. you have to have a practical system of tracking your income and expense. It doesn’t really matter how you track your spending just so you keep track of it and don’t leave it to chances.
4- Reduce Waste
Wealthy communities who are enjoying financial freedom hate waste of any kind. They hate to waste time and they hate to waste money. I studied much about wealthy families. I wanted to know how they acquired their wealth and what attitudes, values and habits they had that were different from 95% of the population. How did they escape the rat race? and How do they think?
Inheriting wealth is great but most of us don’t come from rich families and even if we did, many inheritors are like lottery winners—they disperse their wealth. I try to read everything I could get my hands on. I had to know how they got to where they are. The pioneers I studied made their money from their own productivity. Self-made individuals enjoying financial freedom make the most of every second of their day. They absolutely waste no time!
- Capitalizing on social sites…they use social sites to their advantage in driving traffic to their business.
- Countless emails to friends, family and associates…they get to the point of their communication efficiently
- They explore internet marketing sites…they know any site promoting a get rich scams.
They also don’t waste money on paying consumer interest with credit card debt, buying the latest fads and fashions, buying expensive cars. They don’t spend excessively indulging habits like eating out or buying shots of drinks for bar pals.
According to Thomas Stanley, author of Millionaire Next Door, most self-made millionaires are very frugal. By living a frugal lifestyle, they are able to put their money to work in investing in more income-producing assets.
5- get educated in how to invest wisely
Top financial advisers recommend saving the first 10% of your income in an interest bearing account. This is the credible financial principle of “paying yourself first”. Most financial planners advise to set aside a minimum of three months living expense in the event of getting laid off or incurring an emergency of some kind.
Obviously saving 6 months is even better–especially if part of your financial freedom plan includes starting your own online business. But, until you are able to increase your monthly income to significantly exceed your minimum monthly expenses, saving money can be almost impossible.
Allow me to encourage you to set aside at least $12,000 in an emergency fund as quickly as you can and then add $40 or $90.00 dollars a month to it until you get a three month living expense reserve. After you get at least $12,000 in reserve, open up an online trading account and then set aside as much as you can each month into a balanced portfolio.
Start with three asset classes–growth stocks, income producing assets and cash. The younger you are, the more weight you should have in growth stocks. Growth stocks as an asset class will typically add 10% growth or more to your investments portfolio over time. Quality Income producing asset like REITS or Master Limited Partnerships could bring a consistent 15 -20% income.
Income generating assets could include rental real estate properties, REITS or Master Limited Partnerships. Of course, every one needs to have some money in cash and or cash equivalents in the event of an emergency. REMEMBER the quicker it is to liquidate, the less interest you will earn. or In other words, the lower the risk the lower the return.
6- Eliminate or reduce debt
Debt is the worst bump to your quest for financial freedom. You have to master money in order to experience financial freedom and join the wealth club. Consumerism is a disease that has inflicted most Americans. Granted, it is very easy to finance your lifestyle on credit and maybe there are days when it feels good to go to the mall for a little “shopping spree” but in the long run, you’ll feel far less stressed when you are capable enough to pay cash for everyday purchases.
7- Increase Your Income
Having a substantial income under their control is the biggest distinction between the wealthy and the strugglers for financial freedom. Regardless of where you are in your life, increasing your income could help you:
- Provide a better standard of living
- Provide you with more capital to save for retirement
- Help you eliminate or reduce your debt efficiently
- Provide you the capital you need to invest in a high-growth portfolio
- Enable you to fire your boss, and make your own paychecks
- Gives you the transition power to turn from employment to empowerment
Have you ever thought of capitalizing on your passion and throw it into online marketing to achieve your financial goals and freedom? Read this.
I Hope this was of a great help, for further assistance regarding “what is financial freedom – The steps to achieve one” or any other topic in this site please feel free to write me using the comment box below or the support page above.