Are you like most people who believe the land of financial freedom is some foreign country that they aren't allowed to enter? How do YOU define it? I have heard many personal opinions on the definition, but here is what I gather from most of them:
financial freedom - being ultra wealthy; not having to financially depend on anyone; being financially able to support all of your needs and desires!
Do you agree with that definition? If so, that may explain why you have felt overwhelmed by the thought of achieving it. The definition above reflects an amazing goal that I fully support. I believe in abundance, independence and living life to the fullest!
But what you see above is NOT the millionaire's definition of financial freedom! I learned the wealthy person's definition of it years ago and it changed my total outlook on reaching this goal.
financial freedom - achieved when an individual's passive income exceeds their expenses
I was reading a book by Rich Dad Poor Dad author Robert Kiyosaki when I was first exposed to this definition.
Defining it in this manner makes the task more quantifiable. Most people would admit that they believe this concept is a pie-in-the-sky idea that seems too far off into Wonderland to even think about. When one can't wrap their mind around an objective, sometimes it is dismissed as impossible.
While we work together to develop your millionaire mind so you won't think this way anymore, let's continue discussing your new outlook shall we? Let me use an illustration to drive a point home here.
In my efforts to stay fit, I incorporate pushups into my exercise regimen. Let's say my goal is to do 200 pushups in one session. I don't know about you, but I can't do 200 straight pushups. So, if I plan to do one set of 200 or two sets of 100, it is mentally daunting. I've lost the war before the fight even started.
However, if I break the task up into ten sets of 20 or eight sets of 25, it's always easier for me to get through my session. The lesson here is, a big task always seems smaller when broken down into smaller portions. Let's do the same with our concept of wealth and financial freedom.
Now that you know the millionaire's definition, you can break down your tasks. First, you obviously need to determine what your monthly expenses are. Tally up everything because this is important. Now that you have that figure, you simply need to develop your plan to increase your passive income to that level. Technically, when your passive income exceeds your expenses, you do not physically have to work anymore!
Since everyone has different expense levels, you will have to determine what passive income level YOU need to reach to be financially free. Starting with no passive income, a person with $30,000 a month in expenses has a little further to go than someone with $3,000 a month in expenses.
Work like a maestro strategically increasing your passive income and minimizing your expenses to accelerate the time it takes to achieve your goal. A good strategy would be to reduce or maintain your current level of expenses. That way, as your passive income increases you will have more cashflow left at the end of each month to reinvest towards your efforts.
By focusing on true financial freedom, you give yourself a goal to work towards. After you reach that goal, you will have more free time (because you won't physically have to work anymore) and experience generating passive income streams. You can then, if you desire, use your time and experience to become as wealthy as you'd like!
Now that we have dispelled the myth that the land of financial freedom is some faraway place, you can move forward with confidence. Your dreams are closer than you thought. They are truly within your reach. Set your goals, devise your plan, and work that plan. I believe in you! See you at the top!
Let's take that step on changing your future and becoming financially free
I am here to help you succeed and live a Financially Free Life!
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