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The Only Route to Financial Freedom – Entrepreneurial Mind

The Only Route to Financial Freedom – Entrepreneurial Mind
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We are all familiar with the old adage,  “The rich get richer while the poor get poorer,” but why is this so? Let’s actually take a moment and try to break it down.  Is there something the rich have, inherently know or do that the poor and the stagnating mediocrity dwellers don’t? I believe there is, and here’s why.

The Education System

We have all grown up being taught that higher education is the most stable, feasible and surest way to success. While the people who follow the rules go on to realize higher academic achievements, the majority of them never spend time outside of school learning about the rules of money. Unfortunately, our educational system was designed to produce hard-working perpetual employees rather than self-sufficient millionaires.

 “ The purpose of foundation (the general education board) was to use the power of money, not to raise the level of education in America, as was widely believed at the time, but to influence the direction of that education…The object was to use the classroom to teach attitudes that encourage people to be passive and submissive to their rules.

The goal was-and is- to create citizens who were educated enough for productive work under supervision but not enough to question authority or seek to rise above their class. True education was to be restricted to the sons and daughters of the elite. For the rest, it would be better to produce skills workers with no particular aspiration other than to enjoy life.”

-G.Edward Griffin in The Creature from Jekyll Island, on Rockerfeller’s General Education Board, found in 1903.

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If you have or plan on choosing a professional career you might live to be comfortable. But without the applied knowledge of business and investments, you will find it extremely difficult to live the life you had once dreamed of as a kid.

Debt            

What’s your initial reaction when you hear the word debt? Nine out of 10 people would probably experience a less than positive one.

Most people take out loans or use their credit cards to pay for things they cannot afford. Most of those things become liabilities. Meaning they suck the money out of your pockets to a place where it will never be seen again.

For you to fully understand debt and how to deal with it, you must open your mind to its uses and possibilities. If you didn’t already know, there is actually debt that is considered good.

Good debt can make you more money than you have.

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Let’s say you take out a loan and invest it into a rental property. This would be considered good debt because it’s actually putting money back into your pocket. On the contrary taking out a loan to buy that Mercedes C Class you can by no means afford while living in your mom’s basement, would be considered bad debt.

Utilizing and understanding the concept of good debt will actually increase your financial stability not diminish it.

Save Your Money

Most common mantra #2: Go to school get a high-paying job and save your money. Yea,yea,yea we’ve heard it all before.

If we Gen Y’ers are actually planning on building our own wealth, working our asses off just to stack it up in the bank will not cut it.  Just like with good debt, knowing how to spend your money is just as important as making and saving it. Educate your self on investment options that interest you and spend that money. Work for your money and then make it work for you. Otherwise you’ll be stuck on the perpetual hamster wheel with the rest of them. 

Get a Job at a Big Corporation and Work Your Way up the Organizational Ladder

We all go through that pressing brain-crushing moment when we realize that we need to make a serious decision about the direction we want to go in life. You’re sick of your parents “helping you out” and you feel an overwhelming need to break through into your own independence. But now what? When your age has caught up to society’s standards of where you’re supposed to be in life I’ve seen people take one of these few directions:

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A) Blind themselves with their social life (friends, girlfriends, boyfriends, I like to party all the time etc.)

B) Settle into a job doing something they love (or sadly not even that,) which doesn’t provide any real growth or opportunity but is stable enough to make them feel comfortable.

C) Get a job at a big corporation and spend the majority of their years putting their blood, sweat, and tears into working their way up the corporate ladder.

D) Or you can go against the grain of it all and become an entrepreneur by starting at the bottom with the goal to make it to the top on his or her own terms.

As for options A and B, I don’t think people who pursue them are too concerned with the prospect of becoming wealthy. Option C is where life gets tough. These people want success and they’re willing to work for it. The problem is after all the time spent killing themselves in school in hopes of landing a job at a top corporation; these people spend the best years of their lives working over 60 hours a week for that pot of gold at the end of the rainbow.

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The worst part is that these people spend their lives making someone else’s business prosper, and do not work to help themselves. They are constantly depending on getting raises, bonuses and promotions, and put all of their energy into their next paycheck.

For all of the D’s out there, you realize the importance of owning the ladder instead of climbing someone else’s. You would rather put your blood and sweat into your own business to create real wealth and financial freedom for yourself.

You Need Money to Make Money

If you didn’t have the pleasure of being born into a rich family, or have access to daddy’s Rolodex it probably seemed at one point or another that making millions on your own was a long way away. I remember growing up and wishing my parents were rich, wishing I had more connections and that someone would be able to pass me over something instead of starting at square one. But if you look closely you’ll realize that because information and resources are easy access, riches can be and are made through innovation and knowledge more so than through having money alone.

Live Below Your Means

It’s all about your mind set. If you’re focusing on staying below your established means how can you ever grow and surpass your current financial standing?

It is said that the person who lives below their means suffers from a lack of imagination. I say, if you can’t afford it innovate ways to make it possible!

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Original Source – Elite Daily

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Brian Lee

Chief of Product Management at Lifehack

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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