The point at which financial freedom occurs, is not the attainment of some magical massive number. Mike Tyson has demonstrated how $400 million dollars could be insufficient. Mobile homes form a triangular pattern in rural America.
Financial freedom is won when your investments earn enough passive income to meet or exceed your expenses.
The critical lesson here is to have a plan that replaces your working income with passive income. Most investors do not have this orientation. The common path is to swing for the fences and hope that you find the next Apple or Facebook stock. You could also watch CNBC or any of the financial TV channels like an obsessed maniac 24/7 hoping that a buy, sell or hold signal from Jim Cramer is the silver bullet.
1. Avoid speculation. Buying an asset at X and hoping to sell to some “greater fool” at 10X, is foolhardy, yet our culture accepts this as the primary means of wealth creation. Seek out assets that generate income NOW, not proforma income.
2.The challenge to earn a high income or build a profitable enterprise is daunting and difficult. There is no reason to take extraordinary risk with your investments.
3.Invest in yourself. Learn more about personal finance, real estate, taxes, insurance and retirement planning. Dedicate yourself to increasing the equity between your ears. Subscribe to financial blogs, consult with experts, and make increasing your financial knowledge a priority.
4.As Stephen Covey wrote in his “Seven Habits” book, start with the end in mind. Construct a plan to replace your working income with passive income. Financial freedom occurs when your passive income meets or exceeds your living expenses.
5.Resist the temptation to spend recklessly and be vigilant for ways to reduce debt and expenses.
6.Enhance your working income or business enterprises with content marketing, social media and learn how to use the modern tools of the digital marketing world. Start a blog, a podcast, a YouTube channel, and write a book!
7.Surround yourself with positive, supportive people who share your goals, enthusiasm and vigor for living a life at your full potential, fully expressed. Connect with smart, accomplished investors and learn from their experience.
8.Build a coherent strategy for your active/working income and your passive (retirement) income.
9.Create your own clear investment rules. Avoid burying your head in the sand, take action today.
10.Its okay to make mistakes in life, just be sure to pack that secondary parachute and try to have a Plan B. Know what your options are and act decisively.
The optimal questions we must all ask ourselves:
What is the strategy I should implement for buying back my freedom and being truly financially free?
What are the ideal assets to invest in for a recession-proof retirement?
What can or should I do to maximize my current business or working income?
How can I build a team of trusted advisors to help me achieve my goals?
Commit yourself to finding the best answers to these questions and stop obsessing about what your “number” is. Instead look for assets that generate cash flow now.
Never give up on your dreams. With faith and hard work you will win.
In Investment Advice, Lessons, Smart Investing, The Average Investor Tags Mike Tyson, Financial Literacy, Financial Advice, Financial Freedom, Lessons, Apple, Facebook, CNBC, Jim Cramer, Speculation, Assets, Stephen Covey, Debt Reduction, Strategy, Investment Rules, Plan B