We are all here because we want to learn how to become financially free.
But there is an extremely important question we must ask ourselves. The answer will give meaning and perspective to everything you do for the next few years until you gain financial independence.
Imagine you now have financial freedom. You now own multiple income-generating assets which generate more money than you spend each month.
Now, what will you do with your life, time, and money?
Don’t jump to answer this question. Close your eyes and think about it for a few minutes. Try this exercise and many of you will be surprised to know that you don’t have a clear answer to this question. But that’s OK. That is the purpose of this exercise.
Most people that pursue financial freedom fail because they give up before even starting. They give up because they don’t internalize why they even want to become financially free. We MUST understand why we want to become wealthy and what we will do with our free time and wealth. Without an answer, many will not have the motivation to do what it takes to become debt-free, generate more income, invest in assets, and grow their wealth.
There are literally hundreds of thousands of ways to make money.
There is no shortage of money in this world.
The formula for becoming wealthy isn’t so complicated. It may be difficult to follow through but it is not a complicated idea.
The formula is this simple:
Step 1. Destroy bad debt.
Step 2. Increase your income / Save more money
Step 3. Invest as much as possible into income-generating assets
Step 4. Keep hustling until the assets you own are generating more income than you spend.
Step 5. Keep living and your wealth will continue growing.
There is a big movement now called FIRE – Financial Independence Retire Early.
Do a quick Google search and you will find millions of people joining the movement. It’s worth learning more about it. Some people go to extremes where they cut their expenses to a bare minimum and invest all the money they save. Some of these people have gained financial freedom before they turned 30 yrs old.
The FIRE movement is about SAVING every penny. My variation of the FIRE movement is to save within reason and spending on the things I need while working to increase my income with new revenue streams. That is how one becomes wealthy.
What are YOU doing to save more money and increase your income?
What are YOU doing about figuring out the next steps?