27 Sep Defining Financial Freedom – Towards And Understanding Of Achieving Financial Freedom
Can you imagine having financial freedom and what is defining financial freedom mean to us? What a feeling that must be like! Someday, somehow we say to ourselves, we’ll get there. “Not sure how,” you may say to yourself, “but I’ll do it. I swear!” Then what happens?!
Usually absolutely, p
It just NEVER HAPPENS!
What is Financial Freedom anyway? And why is it such a huge, important thing?
For most of us our lives are just like a bad month on the stock exchange. We are doing okay and then we’re not doing so okay? It’s up, it’s down. We make some money, then we lose some money – and boy don’t we feel like we’ve all lost a bit lately!
It drives people crazy. “Surely,” we reflect, “there has to be a better way!”
One thing we need to learn about financial freedom is that it means something different for everyone. For some it may mean being able to launch a Bell 505 Jetranger Helo from the backyard of their McMansion. Others may want a sports car for the weekend. Or perhaps the goal is more modest – pay all the bills and have 6 month’s income in the bank.
Whatever your financial goal is achieving it may be your definition of financial freedom.
Financial freedom, though, is not to be equated with just simply having more money. There are way TOO MANY people who earn $150,000 per year and still live from one payday to the next payday.
Doesn’t that sound ludicrous?!
Is Retirement Financial Freedom?
When we are young we are told we should execute our life plan a little like this: study hard to go to a good university, get a good job, get married, buy a house, get a border collie to take for walks to the park on cold winter’s mornings, get a promotion and make more money, buy a larger house, pay for your kid’s schooling and higher education…and then one day when we have been around the sun around 65 times we get to experience, finally, begrudgingly, financial freedom.
You would be living the dream, wouldn’t you say?
Yet unfortunately, taking the route outlined above will NOT even see you reach financial freedom. Instead this path often only leads to never-ending debt and NO RETIREMENT!
Many people, when faced with the stark reality that there is no money in the kitty to retire on simply rationalize it away.
“Oh well, “they tell themselves, “I’ll just work for longer to get out of the mess!”
The only problem is they get there and they find out that they can’t work any longer. Illness and impairment strikes them and they just simply can’t work anymore. Or the job market turns against them, being hostile to employing older workers.
It’s a reality TOO MANY good people are facing right now!
So, the first thing to realize is that financial freedom is not about having more money, rather it is about having the freedom to be what you want to be and do what you want to do with your life. Above all it’s a mindset issue. You need to become a different person than you are right now.
Take classes, read books, attend seminars, talk to people who have achieved what you’re trying to achieve. Stay alive to ideas and opportunities. Take educated risks to get you moving toward financial goals that allow you to live better NOW not in some distant future that never arrives.
If you have never read his books on the subject of financial freedom, Robert T Kyosaki, author of books such as Rich Dad, Poor Dad, Cash Flow Quadrant and Rich Dad’s Guide to Investing, it would be a good idea to browse your local library for a copy. Start with Robert’s first book, Rich Dad, Poor Dad, because it can help with changing your MONEY MINDSET.
One area Kyosaki suggests you can achieve movement towards your goals in is in turning your earned income into a source of passive income. Robert’s advice in Rich Dad, Poor Dad is around real estate investing. Learning about every aspect of real estate investing allowed Kyosaki, and some of the friends he has advised, to make good steady passive income from cleverly structured investments.
For you though, you may have other ideas. Maybe real estate doesn’t interest you. If you’re not into it, it will make it harder learning all you need to in order to be successful at it.
Robert’s main advice is to increase your sources of passive income; income that you don’t require much input to receive. The idea is, while you are sleeping you are earning. That’s the beauty of passive income.
Kyosaki is one of a number of very highly-regarded authors on the subject of financial freedom. Read a ton of what is out there from many more authors. It’s better to have too much knowledge when you need it rather than need to know something and have no knowledge of it at all.
The major change to achieve financial freedom lies with YOU!
Go and kick some goals!!
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