How do you acheive financial freedom?

Everyone dreams about being financially free and having the choice to not work for money. But how exactly do you strive towards that? I'll try to give a few examples and explain on what and how should you go towards the goal of financial freedom.

First, you have to understand financial freedom is a result of the choices you make. Your financial intelligence will influence your choices such as your spending habits, how you create multiple sources of income and how you invest your money. Your financial education will determine the level of your financial intelligence.

Financial Education -> Financial Intelligence -> Choices

Financial Freedom = Passive Income > Expenses

The only way to reach financial freedom is to create passive income. Passive income is money that you don't have to work for.

Examples of passive income:

1. Rental from properties
2. Royalties from intellectual property (books, music albums etc)
3. Dividends from stocks
4. Businesses that generate cashflow for you

To create passive income, you will need high levels of financial intelligence. You need to know how to run a business and how to invest. This is the passive side of the cashflow quadrant which is discussed in my previous blog post video by robert kiyosaki. We will need to shift from the active side of the cashflow quadrant of the E and S (Employed/Self-employed) to the B and I(Business/Investor) which is the passive side.

By now, you should see that working hard all your life in a corporation will not make you financial free if you're not able to shift your life from one quadrant to another. It is not how much money you can make but how much money you can keep and what you do with the money you keep. Do you spend more than you earn? Do you invest your money or you just leave it in the bank? Do you invest more than you spend?

Start today by determining where are you now. Are you in debt? If you are, then start setting goals to get out of debt. Reduce your spending and pay off your debts slowly. Start saving up your money. Are you able to save at least 10% of your income every month? If you have been saving up but do not know what to do with the money you have, then start reading up and find ways to make your money grow. Lastly, use the money you have to buy assets that generate passive income for you. You will be financially free very very soon.

Imagine not having to work for money any more and you're able to do the things you like. You do not have to worry about money any more and able to retire without worries. I do not believe in retiring with your savings. Money will devalue over the years due to inflation. Many people find that after they retire, their money becomes lesser and lesser and in the end they have to go out and work again.

In my subsequent blog post, i'll do my best to discuss on subjects related on financial education. I hope to increase your knowledge on finance and help you achieve the dreams you have. Feel free to comment and feedback to me what you want me to discuss about. Drop me an email at sgyounginvestment@gmail.com and i'll answer your queries. All the best to everyone and hope you achieve success in life.