Most people don’t know the difference between creating a living and creating wealth. Having a job will only create a living but not lead to financial freedom. So today, I am going to talk about the 5 ingredients you need to have financial freedom.
- Have a working Income: The first ingredient is having a working income which most people have. Most people have a job and career that they focus on which their working income and that is the one first ingredients to creating financial freedom.
- Get a Financial Freedom Account: The second ingredient is a savings account and you have to be disciplined in putting your money into your savings account. In case you don’t like the term “savings account”, call it a “Financial Freedom Account”. The average amount to put into your Financial Freedom Account is 10% of every single dollar that you earn. Most people give into the false belief that you cannot save money or that they will save when they have money. Make sure that you do not fall into these fallacies.
- Invest: The third ingredient is to invest. You need educate yourself around investment, find out how to invest and what’s the psychology of the top people that are investing and getting great results from it. Start educating yourself before you actually invest. You need to be prepared to take some risks and start with some safe investment like gold and then look into more high risk high return investment. If you don’t know much about investing find someone who knows and learn from them as you need to have some appetite for some sort of risk.
- Get a Passive income vehicle: The fourth ingredient is to have a passive income vehicle. You need to have some sort of way where your money is working for you and you are generating income while you sleep. You should have some mentors who hold you accountable, push you, and can give you some insights.
- Simplify your life: The fifth ingredient is to simplify your life by looking at what expenses what you currently have. You need to cut back on the costs and expenses that are non-essential. If you have a little extra money, put it in your financial freedom account
Among these 5 ingredients you are already doing at least one of them. These ingredients will work for you if you believe in yourself and change your mindset. Believe that you can live a richer life, work when you want and relax when you want. Make sure you are positive and motivated and you are in the right environment. Never give up! If you find yourself giving up, get a person who can put you back in track.
Taking a shortcut by buying lotteries or gambling is the poor man’s way of getting rich. Even if everything works out, at best it will create wealth and not financial freedom. You should not give up; make sure you have someone to push you when the times are tough. You need to go out of your comfort zone to increase your income zone.
Remember “Small Comfort Zone equals small Income Zone”