Do you know what you are asking for when you say you want to achieve financial freedom?
I once attended a seminar organized by one of the most prolific UK-based directors for a prestigious research firm I was working for back in 2007. His topic was ‘How to make a million dollars and contribute to the world at the same time’. I was thinking to myself, “Well, he is just research scientist, so what does he know about the road towards financial freedom?”. Cynical me.
It was only months later that his words begin to really sink it. It all made sense when I begin to reflect what he said back then. I can succinctly recall the advice he was sharing to this very day as surely as I can remember the level of enthusiasm received by my colleagues (whom I now regard as bosom friends). They simply returned to their busy experimental routine. Thankfully, I kept it all in my mental hard disc drive.
His very first advice was this: It is not how much you earn that matters; it is how much you save. I cannot stress the truthfulness in this old sage advice that many indeed take for grant, or do not realise. There are many real life examples from people whom I know – as well as those whom I do not directly know, how this is all so true. I know a working family housewife who works to earn a salary that is considered humble in today’s standards. Yet, from the little savings that she puts aside, she is eventually able to buy a middle-class home and live comfortably, even support their children. Her perseverance had paid off.
As important as the first advice is, awareness about what constitutes your personal liabilities is the next natural step. More often than not, credit cards and line-of-credit offerings by financial institutions are the biggest source of robbing your wealth. I call these daylight robbers. That is because their high interest rates insidiously rob you of your hard-earned money slowly but surely, over the months and years, in all your approved consent, and the legitimate realization that come in the form of bank statements. One has to learn to manage his own finances in the first steps before he can ever hope to manage more.
Once the basic financial groundwork is set, one can then hope to expand further. Having two jobs would help. I was at first surprised how that can be done without losing your social life, and time to be spent with your family or loved ones. It was when I learnt about the concept of passive income that I fully understood. Passive income is income you receive without physically ever need to be at the job. This can come in the form of real estate, investments, commodities trading in shares and stocks, or more popularly, internet marketing or businesses.
So what about achieving the status of financial freedom? Although a source in Wikipedia I once read puts $ 9 million dollars to be the amount that one needs to be truly privileged or accorded with that status, it is a largely relative term. Simply put, monetary freedom is not measured in dollars. It is a situation in your life where you never have to work for money again, or worry about how to make more in your lifetime. This is the universal opinion: Financial freedom is achieved when one makes passive income large enough that it overtakes what one earns in his primary job, so much so that he no longer need the latter.
The road towards financial freedom is an arduous journey that require one’s personal evaluation of his financial status in the very first instance. After which, it is only by harnessing the power of passive income can one ever hope to achieve it in his lifetime.
Marcus is an Internet Business Researcher and is an expert in researching in a broad spectrum of topics. Professionally trained in Medical Research and in Health-related topics, he is passionate in providing Life Solutions to a variety of problems in other people’s Lives. He owns the website http://www.MarcusRecommends.com