Have you ever dreamt of being financially free? The thought of not worrying about money anymore is very enticing for anyone who has a heart beat. No matter what happens in life, we’ll always have bills and things we need to pay for.
No matter what happens, as long as we live in a capitalistic society, money will always factor into your choices.
The greatest dream most people have is to be financially free. The common thought of being financially free is usually winning the lottery, making millions of dollars, obtaining a large inheritance or even not working any more.
What Is Financial Freedom To You?
This is a very simple question that is often answered with a vague answer. I commonly ask this question and I usually hear a response along the lines of “To become a billionaire” or “I want a million dollars”.
The second question that I would ask is what would you spend the money on? The usual responses I would get is “So I could travel and not work anymore”.
However, once thing I’ve learnt is that if your goal is to travel and not work anymore, you actually don’t need a million dollars to achieve that goal. You just need passive income to cover your basic expenses, which the average household would be $2,500 per month and a ticket to fly around the world which is $7,000.
I remember sitting down and working out how much it would cost me to fly around the world, I calculated that it would cost me $7,000 in total and I would easily travel the globe. I’m proud to say that I did it.
2 Steps To Becoming Financially Free
Lets’ help this person achieve his/her dream of financial freedom.
Let’s look at a simple income and expense sheet of Bob.
Income: $50,000 per year which is $4,166 per month
Expenses: $2,000 per month
In order to travel around the world, Bob would need to set aside $1,000 per month to save up for a ticket around the world.
It would take Bob approximately 7 months to achieve the “around the world ticket”.
Step 1 is complete.
The next step is to find a passive income opportunity that would generate $2,000 per month.
There are many different ways to generate passive income on a monthly basis. It can be through real estate, business or through the Internet.
Depending on your strengths and weaknesses, you would pick your wealth creation vehicle and go for it. Of course, never believe that you can achieve passive income of $2,000 over night, it does take time, effort and persistence.
However, let’s say that you’ve fast forwarded yourself a few years and Bob has managed to generate passive income of $2,000 per month.
Step 2 is now complete.
Bob is now financially free, has a ticket to travel around the world and has passive income generating $2,000 per month.
Bob could even travel around the world first and when he gets back, work on his passive income project. Either way, he’s still winning.
Which Option Is Better To Become Financially Free?
Now let me ask you this question, which is easier?
Option 1: Making a million dollars
Option 2: Making passive income of $2,000 per month and saving $7,000?
I would definitely choose option 2.
Going out to make a million dollars requires so much skill, time, experience, luck and everything else to achieve. However, by pin pointing exactly what financial freedom means to you and how much you need to achieve it, then you’re on a clear path of achieving it.
How To Cheat Your Way Towards Financial Freedom
To help make your journey to becoming financially free a lot easier, you can easily “cheat” the system and reduce your expenses. Let’s say that you somehow manage to reduce your expenses by cutting out things you didn’t need and found other ways to live without it.
You got rid of your cable TV subscription (you’re too busy to watch it), you got rid of your gym membership (you only use it a few times a month and can lose weight by running around the block), you canceled your magazine subscriptions (you found a new way to get the information online for free).
You managed to reduce your monthly expenses down to $1,000.
You also managed to find a good friend who works in a travel agency and gives you a special promotional “around the world” package for only $4,000 limited to VIP guests.
By sitting down a “cheating” the financial freedom system, you’ve shaved off $1,000 in expenses per month which will make you finding a passive income vehicle that generates that amount a lot easier.
You also saved $3,000 from your around the world ticket so it would now take you 4 months to save up that amount vs 7 months. You’ve saved yourself 3 months of savings which can also go into your around the world adventures.
By sitting down for one hour and tweaking your expenses, that one hour being spent is worth over $5,000!
The Most Important and Critical Step On Becoming Financially Free
I’ll keep this short and sweet.
Just do it. Today.