Are you worried either about not having enough money to pay for your expenses or you work your ass off for long hours to keep up with your expenses?
Then this article is solely written for you to provide you with the solution to get where you desire to be.
This post is all about some super easy steps for financial freedom in real life.
After reading this article you will get new ideas about being financially free and how you can get financially free as well. This method worked very well for one of my close friends.
We all love financial freedom. Everyone wants to be financially free. Don’t you? So here are some amazing steps for financial freedom.
Amazing steps for financial freedom
First, I’ll talk about what financial freedom means.
I will try to burst out all the myths you have related to financial freedom and also, tell you about some amazing baby steps for financial freedom so that you can live a life of time freedom and money freedom.
What is Financial Freedom?
Financial freedom is a state or phase in life, where an amount more than your expenses (monthly or yearly) is getting deposited in your bank account (through passive income) without you actively working for it.
The other thing is you don’t have to spend much time on the money that comes into your bank account. Also, there is no constraint for you to stay in one place.
Now working to pay for your bills is what the majority of the people do, but the ones who are financially free does not care about paying for the bills.
People who are financially free make money work for them.
Didn’t you like financial freedom? I hope you did.
So the financial freedom we all want in our lives is made up of primarily 3 things
When I talk about financial freedom, it requires the absolute presence of all the above 3 things. Even if one of the things misses out, you won’t be called financially free.
Financial freedom does not mean retiring from work, it means not working just for the sake of money.
Remember one thing
“Freedom is what we all want and value is the way to achieve it”
One by one I’ll talk about the role of each one of the above-mentioned things
1st steps for financial freedom: Role of money
When I talk about financial freedom, I mean to say suppose tomorrow if you lose your job or your business incurs extreme losses, or you stop going to your job.
What will happen
Option A: Will your life run smoothly as if it was running when you were still working in the job or business?
Option B: You dread this thing, as being fired will put you in a position where you will not be able to take care of the necessary expenses and won’t be able to live your life as before.
If you select Option A, then thank God that you are ahead of the first step which is you will not have money problems. You won’t die starving even if something unfortunate happens tomorrow.
If you chose option B, then also it’s ok guys, no need to worry. I’ll make sure by the end of this article I will give you some great insights so that you can shift your option from B to A.
People who choose option B might be wondering, how in the world is this possible that even if someone loses his job or business how can he survive and that too without any worry.
The secret of Option A people
The magic secret that is available with option A people is they have multiple income cash flows whose summation exceeds their monthly expenses.
It can be taking freelance projects with skills required by the masses or they might have created assets or business which are generating cash flows every month. Therefore, they are not afraid to lose their jobs because they are aware money will still pour in from other income as well.
Most of the people who chose option B are the people who must be having only one source of income which can be their job or their business. Or they don’t have an upgraded skill which can earn money at this time.
Baby steps for financial freedom: Money problem
Call for action: So, the first step is to start growing your other income streams. That will happen when you acquire the skills needed by the masses or service or business which solves a problem or satisfies a need. You must hustle and create a model, asset or business which gives you enough income to survive at least your necessary expenses if not your wants (there is a difference between need ad wants)
Diversification is important: getting involved in a side business, creating a product yourself or learning a new skill and doing freelance projects are some of the examples.
Remember one thing
Whatever work you are doing, give more value through whatever you are doing. The more value you give to more people the faster you will get financially free.
Because when you give more value, your marketing is done by word of mouth from people who use your product or service. If it adds value to their life, they will tell it to different people and you will get free marketing.
Jeff Bezos – “The best and trustable marketing in the world is Word of Mouth“
Initially, you will feel why I am giving more than I get paid but when your business product or service starts to add value to more people it will get more and more valuable and you will get paid more than what you expected.
A must thing to understand is that building multiple sources will not happen in a day, it will take time. You will go from 1 stream to 2 streams, 2 to 3, 3 to 4 and so on.
Remember “Rome was not built in a day” and therefore be patient. You will definitely succeed.
I’ll give you my personal example: I had invested in a debenture which offered me a monthly payout of the interest I received. The amount was very small, but still, it brings a smile to my face because it tells me that I took a step ahead towards the way of financial freedom. I am also acquiring skills so that I can also generate multiple income streams.
My friend’s example: One of my close friends, highly skilled in business strategies partnered and invested in a business where he made a royalty deal with the business that he will get a percentage of every good sold in the business till some XYZ amount.
2nd Point on Steps for financial freedom: Role of time
All the money in the world won’t do any good if you don’t have time to spend that money. We all love free time. People, who are stuck in jobs wait for Saturdays to come.
Well, who doesn’t? Many individuals out there love to binge-watch their favorite series on Netflix, have desires to spend time with our loved ones and require time to roam around and enjoy the beauty of this beautiful world.
Is time free?
People who do jobs or are self-employed will answer
The time comes with a cost. People who work in 9-5 jobs or are self-employed are trading their time for money. The salary you get monthly, divide it by the number of hours you work in a month. You will get to know that your precious time is being traded away for a minimal amount.
Financially freedom is what we all desire, but we forget that time is also attached to it. To get more money we start to trade more time. What are we doing a 5-day job for 2 days of freedom? Is this what you want for 40 years of life?
For 40 years (assuming you start working from 21-60 years)
Working for 5 days to enjoy 2 days of freedom. The people who are doing this are you sure you are willing to spend 40 years?
There is a necessity of time freedom because having multiple skills that make money is good but you have to make sure that you spend less and less amount of time on that. You have to optimize your time in such a manner that it produces great outputs with less and less of your time.
For example, an affiliate link when putting on a blog post with huge traffic will get commissions for the blogger automatically.
How to solve the time problem?
Call for action: So the solution here is, the asset, the service or product you have created to provide to the people. Automate the process of selling the product. You can hire people and teach them how to sell. Once, they have learned the process, they will work for you and it will require your less and less time.
You have to leverage other people’s time and other people’s work.
If you are a single person in your company and you only sell your product then you can work a maximum of 24 hours a day.
If you have 10 people and they only work for 9 hours per day (way more less than your 24) then your company will work for (9×11=99) with you included. Now if the people you hired have the right selling skills, will not they generate more revenue than you?
To automate your work, you will definitely need a good and talented workforce.
One of the best tips or advice I learned from Rohit Kashyap – CEO of Maytree School of Entrepreneurship was “The best way to automate your business is to provide customer satisfaction by adding value to their life when you do this they will market your product through word of mouth. That’s free marketing.”
Initially when you work for something which you have to build it will take more of your time but as the thing develops you have to make sure it requires your lesser and lesser time. If this thing happens you will get time freedom.
Make sure, the service you provide is adding value, I will keep on reminding this thing. Because if this thing misses out, it won’t work.
3rd steps for financial freedom: Role of Mobility
Mostly with time freedom also comes mobility. But there are some jobs which require your very little time but the need is you have to present at a particular place.
Is your work like something which does not require you to be at a specific place every time? Does your work offer flexibility? Can the business be operated from anywhere in the world or it can be run on its own? If is it so, then you have mobility freedom.
Call for action: If you don’t have flexibility or mobility automation can solve your problem. Automation can give you both time and mobility. So start thinking of starting something which the people need and automate it. If the product or service you offer adds value to people’s life you will earn a lot of money.
Why do we require all 3 steps for financial freedom?
Case 1: If you earning enough but don’t have time freedom or mobility freedom. You are trading your time with money. What are you going to do with so much money if you don’t have quality time to spend what is the use of money then? Have you enough time to spend with your loved ones? Can you go somewhere?
Case 2: Unemployed people have time freedom and mobility as well, but they don’t have money to take care of the expenses or to enjoy luxuries which life offers. What are they going to do with their time and mobility without financial freedom? They would die out starving if they don’t get money.
Case 3: If you have financial freedom and time freedom but the work, you are doing requires you to be present at a specific place every day maybe for just 1 min. This case will be like you are being chained around a rock and you are just mobile enough to roam till the circumference.
I think you got my point, why there is the absolute need for all 3 steps for financial freedom. One thing misses out and BAM!! Financial freedom misses out.
Okay, so I have told you about what 3 components of actual freedom are. But how to get there should be your question. Right?
So follow these steps for financial freedom and make your life stress free
Learning new skills in the niche you are interested in and also which the market needs are the answer. Create a business or product and then automate the process of selling by hiring a workforce. This process will earn you passive income. When your passive income will exceed your monthly income you will be financially free.
People who do not know what is passive income?
Passive income is the income for which you don’t have to actively work. In this type of income, you don’t have to trade your time for money. Or if you have to it is very less time for the money you earn.
Examples of passive income: Rental money from properties, running a business with an effective workforce, ad-sense income from blogs and social media channels, selling your product online, selling other products online through affiliate marketing, income from bank interests and dividends from stocks, etc.
Note: All the above-mentioned processes are fully automated.
Mr. Warren Buffet steps for financial freedom
There is a very famous quote by Mr. Warren Buffet which says that
“If you can’t earn while you sleep, you have to work until you die”.
And these are words of wisdom. You won’t have enough energy in your 50s and 60s to earn as you have right now. If suppose due to your misfortune you had an accident and you can’t work for let’s say 2-3 years what will happen. The money will stop coming in?
With that, I will end my article and request you to start your financial freedom journey with the above steps for financial freedom
Let me know in the comments section how was the article, I appreciate your feedback as it will help me in improving my content.
Don’t miss out to share it through social media buttons with your loved ones and people who you want to see financially free.
To know more about me follow me on Quora: Arjun Sachdev, I write there daily.
To know how you can gain financial freedom, read my article on digital entrepreneur which will let you know how you can just beat anyone in the online game.