I’ve had a number of people ask me recently how to become financially free. I thought I’d write down a few quick thoughts.
The Wikipedia definition – “Financial independence is generally used to describe the state of having sufficient personal wealth to live, without having to work actively for basic necessities. For financially independent people, their assets generate income that is greater than their expenses.”
Books on personal finance really got me interested in this at a young age and I always wondered why school and college didn't teach us how to be financially intelligent.
Financial freedom does not simply mean being free of debt. Debt is just another expense. When your passive income from investments and business ventures are able to cover all of your expenses, you are financially free.
In simple terms, financial freedom is when you do not need to work for money, but your money works for you. The real key to wealth is ownership.
"How do you achieve it?" Find, learn, and put the time, effort, and money into building something that can create equity or generate income long after you have built it.
There are many ways to build such a money-making machine. It could be a stock market investment strategy, an on-line business, a franchise business venture, or a real estate venture for rental/capital income.
Owning a business, the stock market, and real estate are the 3 ways people get rich and become financially independent in this country.
Many will say, “That sounds really good Marc but I don’t have the necessary skills, experience, know-how and money to build it”. Let me assure you that none of the great business moguls had all of these things either.
Every single excuse you create in your head has been met and overcome by people who were not as smart, had less money, and less skill than you. Find something people want or that solves their problem, that aligns with your passions or strengths and build something special around it.
The “money generating machine” may be more than one. It could be multiple machines. This will greatly depend on your desire, capital and risk tolerance.
Everyone is different. The important point is this: You must be the one in control of those decisions that affect your life. You should always focus on ownership and control.
You must finally free your mind to create the wealth that you deserve. Then get to work.