What is financial freedom? How to achieve financial freedom? For people who do not know about what that is, here’s the simplest definition for you. “Financial freedom usually means the ability to live rest of the life without worrying about any expenses to be paid, because of having enough income that is generated by other sources. Which helps in making life decisions without stressing about financial struggles”. It means that you don’t have to be employed or have a job to produce income for your living expenses. This type of income is generally known as passive income.
In his book, “Rich dad: Poor dad,” entrepreneur and author Robert T. Kiyosaki explain the Art of achieving financial freedom. Says Robert, “Financial freedom is a mental, emotional and educational process.”
Is there any method to achieve financial freedom as a businessman? There are several methods you need to follow to achieve it. In this article, I’ll be taking you into the adventures of the minds of successful businesspersons.
Identifying the difference between Assets and Liabilities
Let’s say you saved up a considerable amount of money from your salary every month, and you bought yourself a Brand new car. How cool is that? You got what you’ve been looking forward to for a long time. Also, keep in mind that you did not get a loan to buy your car. So, finally, one of your biggest dreams came true, right? You don’t have to use public transport again! You can go on family road trips!
Is it a great asset to you, right? But what if I told you it’s not. What if I told you it’s a Liability? I know what you are thinking. You think I’m crazy. That car is your liability, but you don’t see it that way.
Let me explain this to you, what does your brand new car do? It takes money out of your pocket. It needs to be maintained, needs fuel to run, malfunctions cause you to spend more, right? Assets are supposed to be putting money into your pockets. When you have financial intelligence, you will acquire more assets than liabilities. This is precisely why the rich stay productive, and the poor stay poor. The rich only buy assets because they are farsighted. The poor will only have expenses. But the middle class will acquire liabilities that they think are assets.
Some people do have money, but if their theory is to spend everything they get and what they have for liabilities, most likely, an increase in cash would increase expense, like the saying, “A fool and his money is one big party.”
So, try to acquire assets. For example, stocks, bonds, income-generating real estate, and anything else that has a value produce income for you. When you acquire these types of assets, they create income that will be enough for you to pay off expenses like rent, utility bills, and any other important expenses. There will be an extra amount, where you can use them to acquire more assets.
All you have to do is keep your expenses low, reduce your liabilities, and ardently build a base of solid assets. This will lead you to financial freedom.
Successful people never worry about what others are doing
This one is simple. “Mind your own business.” Financial struggle results in a persons’ life because he/she is working for someone else their whole life. There will be nothing left for them at the end of the day if they stop working.
For example, when you ask someone what your business is? They say, “I am an Accountant,” but if you ask if they own the company, they say, “No, I just work there.” This is what most people misunderstand about being a businessperson. They may have a profession, but still, they need to have a business of their own. An employee with a safe, secure job, without financial predilection, has no escape. They think they have the most they can get from their skills, but actually, they are killing themselves for someone else’s life.
Why do you waste your time and your skills to make someone else rich? People always think about climbing the Corporate ladder. Why not own the ladder? This is the question you need to ask for yourself.
Doubts kill more dreams than failure ever will
The greatest reason for the lack of financial success is because most people play it too safe. Don’t play it safe; play it smart. For most people, the reason they don’t win financially is that the pain of losing money is far greater than the joy of being rich. If you are not willing to take risks, losing, learn from failure, you can never achieve financial freedom or successful life. Our doubts often incapacitate us. Fight against it.
These are a few steps you can follow to achieve financial freedom in your life. Never stop learning; education is more valuable in the long run. Never quit or stop working for your passion. Failure inspires winners. Failure defeats losers.