Financial Freedom: Is it possible to achieve?
For everyone it is a dream to live a life where your economic situation is not a concern. Those dreams can come true. You can achieve that long-awaited financial freedom.
Days go by, you're still at your 9-5 job, weeks go by and you're still doing the same thing, but you feel like you want and deserve something more. You realize that you have been settling for what you do, but deep inside you know that you can do more. It is at this moment that your life and your mentality change and you decide that it is time to look for new paths, which will surely be challenging, but they will be worth it. It is time to prepare for the great goal of your life, to achieve financial freedom.
No dream is unattainable. Just as people prepare for a marathon, where bit by bit they improve their performance until they reach 42 km, so you have to prepare. Do not think that financial independence only comes to those who are already millionaires or those who are lucky and win the lottery. We are in different times in which generating different incomes is not impossible. You need to be willing to face the obstacles that life throws at you.
Now, do you know what it really is to have financial freedom? It is basically being able to meet all your financial obligations without being tied to a job, but how? This is where passive income comes into play, which, although it requires some time and dedication, gives you innumerable advantages, such as:
Freedom to make decisions.
You are not tied to a schedule.
You will have full freedom to use your time.
In the same way, I share some ideas of passive income:
Real estate rental.
Interest and dividends from your investments.
Create content and digital formats.
Monetize profiles on social networks.
Perhaps being your own boss, at first, is a difficult task, because you are not used to it or because you lack experience and knowledge, but this is all part of the process, do not get discouraged, be optimistic, and enjoy the course.
Therefore, you must also take into account the stages that are experienced in search of financial freedom, there are several, but those outlined by Grant Sabatier, author of the book "Financial Freedom", are the most complete and most accurate about the process.
CLARITY:
At this point, you realize how you are financially today and in turn where you want to go. You set goals. You start the change.
SELF-SUFFICIENCY:
The next step is to be solvent, that is, that you can answer for yourself and your obligations without depending on anyone else and above all without getting into debt.
This can be a complicated stage which, most likely, will be difficult for you to overcome it. But remember to be consistent and disciplined.
BREATHING ROOM:
It is the stage in which you begin to manage your money better, and not necessarily because you have more income, but because now you are more aware and differentiate what is urgent from what is important.
Perhaps it is one of the most rewarding stages since you realize that your monetary capacity is improving. Totally change your perspective.
STABILITY:
You start to think about money very differently, as you stop feeling stressed and worried about it. And in turn, you begin to invest to multiply your money, not being afraid of what might happen because you know how to manage your money, as you are also investing what you are not afraid of losing.
FLEXIBILITY:
You now have the flexibility to organize your life and your time according to your preferences. You could even live only on your passive income (with limitations) without having to have a job.
In this phase, money has given you the most valuable asset, time, congratulations.
FINANCIAL INDEPENDENCE:
At this stage, you definitely won't have to work anymore. The profits generated from your passive income will be more than enough to live on.
Reaching this step implies that you have built a heritage that allows you to continue enjoying your lifestyle.
ABUNDANCE:
Although it may seem very similar to stage 6, the main difference is that here you no longer have to pay attention to your investments to sustain your lifestyle. But how is this possible? People in this phase follow the 4% rule.
This is the percentage of their savings that they can use each year and can even exceed it because their assets are so large that it would not affect them, they also already have their investments organized and they know that this money will return.
In short, money is no longer a concern, because they have more than they need.
According to these stages, can you identify which one you are in right now?
As you can see, there is a long way to go, however, by ordering your mind and your ideas, the things you can achieve are much greater than you could have imagined.
I would like to add 3 pieces of advice given by 3 of the richest people in the world. This will definitely help you to have a better economy.
BILL GATES
You don't have to leave money in the bank, you have to invest.
In an interview with Bloomberg in 2019, Gates said: "We're not in a defensive position where we have most of it in cash or anything like that. The strategy that I've used in investments is to go above 60% in equities."
ELON MUSK
Don't play it safe, take a chance.
In an interview with Esquire, Musk said: "I could keep the money, but then the companies are going to die for good or invest what's left and maybe there's an opportunity."
WARREN BUFFETT
If you don't understand it, don't invest there.
Warren Buffett to CNBC: "If you invest in things you don't know about, you become a gambler".
Reading a little bit late but amazing as always! keep the good work!
Great post Daco! The opportunities we have now and days are insane! I don't know how people sleep with all those that we have!