Have a clear objective and an action plan
The first step towards financial freedom is to have a clear and precise goal of the amount you want to earn passively to live the life of your dreams.
The second component of this first step is to have a clearly defined plan to achieve this financial goal.
If you do not have a financial goal yet, take the time to think about what your dream life would look like and how much money you need to live it (it’s often a lot less than you think!).
Then set up an action plan to earn this monthly income passively. If you do not know how to do it, the rest of this article should help you!
Having the State of Mind of Financial Freedom
The second condition for achieving Financial Freedom is to have the right mindset. having thoughts, beliefs, and habits that move you toward this financial freedom.
Do you think you can earn 1 million a year?
If your answer is no, you need to work on your state of mind!
70% of millionaires started from scratch!
To become financially free, you must believe that it is possible!
To “condition” your mind for success, I listen to an inspiring video or audio every day, from successful entrepreneurs.
Spend Less than Earnings
It may seem obvious! And yet, this is one of the prerequisites for achieving Absolute Financial Freedom.
You must spend less than you earn. If possible, much less!
The first thing you can try to do for this is to reduce your expenses. Remember that you are doing this in order to be financially free.
Know how to keep an eye on the future when you make your decisions in the present!
You must also be able to know how much you are spending and how much you are earning exactly every month.
Manage your money (or money will manage you!)
Managing your money, for T. Harv Eker, means dividing your money into different bank accounts each with a specific purpose.
This part is detailed in the book “The Secrets of a Millionaire Spirit”.
But the main idea is to have 4 to 6 bank accounts.
-one for daily expenses (rent, food, electricity, etc …)
-one for investing and creating a passive income
-one for long-term savings and unexpected expenses
-one to have fun
-one for the education (books, training, seminars)
-one for donations
Earn a lot of money
We have seen it be rich does not mean to be free.
On the other hand, to become financially free, you must start by earning money and if possible a lot of money.
Money comes from people who spend it. And people always spend their money to solve a problem (the problem of housing, clothing, relaxing, etc …)
The recipe for making money is, therefore: “Become a problem solver!”
And to earn A lot of money: Help Many people solve their problem!
Several methods exist for this. But I would say that the Internet is now a great tool to reach as many people as possible.
Invest for Value Appraisal
The first thing to do in investing is to learn the different types of existing investments, how they work, etc.
Pay attention to all brokers, bankers and other financial agents who are paid to make you invest in a particular fund. You can not trust them.
The idea of this type of investment is to buy, sell, and reinvest profits. We then obtain a cumulative effect that can give very interesting results in the long term!
The rule to remember is “You make money at the time of purchase, not at the time of sale”.
That’s why you must learn to:
- -How to buy?
- -What to buy?
- -And when to buy?
Make a Passive Income
There are 2 types of passive income:
Passive investment income,
The passive business income.
The passive investment income differs from the investment for value appreciation.
The goal of the first is to generate a steady flow of money. The second is to generate a profit at the time of resale.
Real estate is an example of an investment that combines both.
On the one hand, you earn a passive income from rent. And on the other hand, you can usually sell with a surplus value (provided you have bought well – see rule # 6).
The passive business income is the one generated by your business, once you have automated it. So, first of all, you need a business.
There are two methods available to you:
- -Create your own business.
- -Buy an existing business.
If you do not have enough budget, you will have to create your own independent business. The good news is that it has never been easier to start an activity on your own.
The MLM is, for example, a great business idea that you can launch using the products and support of a recognized company.
If you have a much larger budget, for example, you can buy a small business and hire a trusted executive to run it.
If all your funds today are invested in savings, stocks or real estate, investing in a business is probably the best way to significantly increase your returns and generate significant passive income.
Donations and Contributions
In a natural way, most people are inclined to give more to others than to themselves.
Indeed, to make us feel good, makes us feel good “karma”.
The problem is that when you don’t have enough for yourself, you can’t give to others.
Hence the advantage of financial freedom!
But to achieve financial freedom, you must implement this 8th condition BEFORE being financially free.
Start now to give for a cause that you support for example.
You don’t need to give huge sums. If you can’t give one euro, do it! You’ll get it 100 times from unexpected sources!