It has always been mankind dream and desire to seek Freedom – Freedom of thoughts, Freedom of speech, Freedom of belief, and Freedom of expression! Why then not Financial Freedom!
Wikipedia definition – “Financial freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses”.
Rich Dad, Poor Dad series and other books on personal finance really got me interested and wondered why school and college didn’t teach us how to be financially intelligence. Ultimately, whether all these books have been fictionalized or are real story are debatable. The important point here is that it advocates financial independence through investing, real estate, owning businesses, and other means of money generating and protection tactics.
Most of us are hunger and aspire to achieve financial freedom. When one’s work in an organization without decision making capability. Management will dictate your financial well being. You will bear the consequence of management failure, within or beyond their control. It could be external macro factors such as – market environment, competition, government policies, act of god…… intentionally or unintentionally. You will bear the fruits of management mistake – retrenchment, down sizing, pay cut, and stagnant pay.
What happen next…..? You start to look for another job. Maybe this time round, your lady luck is shining, you manage to secure…wrong words to use, get a job working in a big blue chip company, maybe better, work as a civil servant with an iron rice bowl. In your minds, you must be saying – I have finally made it in life….. !! Do some souls searching – do you really make it? Your income from salary may or may not to be able to support your daily living expense. Or may be you are one of the million out there still struggling to pay mortgage loan, car loan, credit card, utility and telephone bill…bills that without ending…….!!!!!
Maybe you are very fortunate, able to find a job that the pay check exceeds your current living expense. Maybe you are one of the fortunate few that earn good income working in the top echelon of an organization. But ask yourself this question – Are you happy? Are you out of the everyday’s rat race? Are you out of the merciless office politics? Are you out of getting stuck in the daily morning traffic jams that never seem to subside?
It could be true that you like your job. Excellent….! But are you growing your money? Are you using the power of compounding to accumulate wealth so that when there is a day that you finally decided to quit your job, you have a mountain of wealth supporting you? It is only when you have reached that financial stage that you can proudly say, “I do what I love to do because I want to!!”
Financial freedom does not simply mean free of debt, debt is another expenses. As long as one passive investment income is able to cover all expenses, one is consider as financial free. This large enough “nest egg” passive investment should also be easily be liquidated if there a need. In simplified term, financial freedom is where one does not need to work for money, but let money works for you!!
“How do you achieve it?” It could be achieved by finding, learning and putting time, effort and money into building something (passive investment) that creates income profitably and consistently, long after you have ‘completed the building’. There are many ways to build such money-making machine. It could be investment or trading of stock, forex, future, commodity or whatsoever financial instrument that can generate money. Internet marketing, MLM , business ventures and real estate ownership for rental/capital income are other forms of money-making vehicle.
The biggest obstacle to financial freedom is not everyone has the necessary skills, experience, know-how and money to build it. The key to wealth is to find something that suits one’s ability and build it. The “money generating machine” may be more than one, it could be multiple machines. How big or how many machines you intend to build will greatly depend on one’s desire, capital and risk tolerance level. Everyone is different. The important point is you must be the one in control of those decisions that affect your life!
Your chosen path to financial freedom will also greatly depend on your interest and the amount of money you have. It is true that you need money to generate money, but it is also true that you can create wealth with little money. Many wealthy men and women have proven that if there is a will, there is always a way!!
If you seriously want to achieve financial greatness, you must first eliminate all subconscious blocks you have towards money making. You must finally free your mind to create the wealth that you deserve!!