Sit back, relax and close your eyes. Allow your mental spotlight to shine on Financial Freedom. Focus on the images that come to mind. Can you see garish Lamborghinis, drinking champagne in the Seychelles or private swimming pools. Perhaps you can hear the voices of loved ones, children growing up or excitable grandchildren. Some images may feel out of reach. A wild dream. The fact is that being financially free may not be as far away as you think.
What does Financial Freedom mean?
To understand how to get there we first need to define what ‘there’ looks like. If your financial freedom looks like more digits in your bank account than you know what to do with, perhaps it’s time to dust away the misconceptions and study some truths. Let’s start by looking at choices as an example.
On a basic level being financially free could simply mean having choices. Choices to decide what you want to do and when you want to do it. Not having to submit a holiday request, not having to set your alarm clock or not having to sign-out for lunch. Choices and freedom are inextricably connected and are often dictated by the need to work to pay the bills.
Let’s face it, our day-to-day is dictated by paying the bills to maintain the lifestyle we have become accustomed to. For the large part, it is this structure that limits our choices. What if, on any given day, we could decide not to take that Zoom call, not to write that email response or not to even switch on the computer at all? Would that feel like freedom to you?
Time to be free
When we consider this freedom, it becomes apparent that we are striving to make time an abundant commodity in our lives. We all have the same 24 hours in a day and each day we choose how to spend them. The goal of financial freedom therefore, is to spend time doing the things we want to do rather than the things we do not want to do.
Fast cars, holidays and mansions are all just materialistic things that we associate with money, but not necessarily freedom. Money itself may feel like freedom, however it is how we obtain that money that is the gateway to freedom. By working all of the hours you possibly can, refraining from life’s-little-luxuries and saving every penny it may be possible to one day buy that Lamborghini. As you sit in the soft leather of its Italian-made sports seat, would you feel free?
If time is freedom but we have to choose between time and money, the obvious question that arises then, is how do we have time and money? The answer is to earn an income passively, in a way that requires less of your time and input. To achieve that freedom target it will be necessary to understand the cash figure that is associated with it. How much money will you need in your bank each month to pay the bills and put food on the table?
Understanding your objectives
Your financial freedom figure is not all about holidays and fine dining. At the basic level it is simply a case of generating the money on which to survive on a daily basis. By calculating your essential expenditure, it will be possible to work out how much income you will need this year, next year and over the following 10 years. Working backwards from that point will help you to design a strategy that achieves those targets.
There may be other objectives on your mind however. Objectives that may not be happening on a daily basis, but will occur in the future. School fees, marriage and the big one… retirement, may well require consideration within your strategy for freedom. All of these factors can be determined, and the right measures can be put in place as part of a life-plan.
Roll up your sleeves
Arriving at that destination of having time and money most likely will not be an overnight success story. Generating passive income to cover your living expenses, despite what may be portrayed on adverts, will need a certain amount of commitment. So here’s the shocker… financial freedom will, to misquote Thomas Edison, come dressed in overalls and may look suspiciously like hard work.
That’s right, it is going to take hard work, commitment and determination to get to your goals. You will need knowledge, the tenacity to apply that knowledge and most importantly you will need to go out into the world and take action. The great news is, you can do it. You can do it and it is within your grasp.
At the Asset Academy, rather than portray a road of diamonds and rose petals, we will be honest and transparent with the actions you will need to take. However, we are here to help and guide you through every step towards your destination. In addition, the Asset Academy community is second to none, a supportive and encouraging group of people that once stood where you are right now. If your first step was reading this article, perhaps your next step will be registering for our FREE 1 hour Discovery training. You have nothing to lose yet freedom to gain.