Tag: financial freedom

5 Steps For Achieving Financial Freedom

I set a big goal for myself two years ago. I told myself I would be financially free by the time I’m 25. In order to do so, it requires a lot of work. In this article, I share 5 steps for achieving financial freedom in your life.

 

2 years ago, I set a hefty goal for myself. The goal was very simple. I wanted to be financially free before my 25th birthday.

 

 

Everyone has their own definition of financial freedom. My definition again was very simple. I wanted to live a comfortable life where money wasn’t an object in any of my purchasing decisions.

 

 

Saying I’m going to achieve financial freedom is one thing, but doing it is a lot harder. I knew I had to strategize and create a plan if I wanted to fulfill my goal. I decided to find help.

 

 

I started talking to other wealthy individuals who were able to achieve financial freedom at a young age. I asked them simple questions such as what strategies they used and what they would recommend to me.

 

 

In this article, I share 5 strategies for achieving financial freedom:

 

 

Step 1: Create Passivity 

 

When I first set this goal, I had absolutely no passive income. I was working my ass off every month making sure I had enough money for the month after. Ironically, everyone I spoke to told me the same thing.

 

 

They said that I had to create a source of passive income that would take care of me each month without taking up too much of my time. I came up with a number (the amount of money I needed each month to live/survive) and set that as my goal.

 

 

Once I had that number, I knew what the minimum amount of passive income I had to be generating. After that, I had to work on increasing my passive income up to that number for the next few months. Remember, time is the most valuable commodity you have!

 

 

Step 2: Build The Big One 

 

Once you’re able to meet your bare minimum needs on a monthly basis, it’s time to shoot for the stars. In the world we live in today, $1 million is probably not enough for you to achieve financial independence for the rest of your life.

 

 

That number has increased due to inflation and a number of other things. The second step is to work on a project that has large potential. For me, it was working on my startup companies that I believe can be worth millions of dollars in the next few years.

 

 

When you’re minimum expenses are paid off each month, you can focus on the big project without having to take cash out of the project. Find something you’re passionate about and look for a large market before diving into it!

 

 

Step 3: Be Frugal

 

Just because you have a lot of money doesn’t mean you should be spending it. I agree, it’s very tempting to take your wads of cash and buy random things, but I highly recommend that you don’t.

 

 

When a little bit of money starts coming your way, think of better ways to spend it. Don’t let the riches get to your head because a lifetime of financial freedom is a lot better than a couple of toys.

 

 

Step 4: Invest

 

I quickly learned from wealthy people that investing in life is a must. Before meeting them, my money would sit in the bank account earning pennies of interest every year. They taught me a very valuable rule about investing.

 

 

Investments all come with a risk. You have to assume that 2 investments will succeed while 8 will fail. However, those 2 investments will pay off to cover your losses from the other investments while garnering you a nice return.

 

 

Instead of letting your money sit in the bank. Put your money where it can do some work for you. Just make sure you’re not trading off too much time when you do invest. You’re investments should be as passive as they can get!

 

 

Step 5: Give Back

 

Do not give back for the sole reason of getting something in return. Genuinely give back to the world the best way you know how. You don’t have to donate thousands of dollars, you can do a lot of other things.

 

 

I give back by helping other entrepreneurs and giving back to the entrepreneurial community as much as I can. Everyone has something that they can do to make the world a better place.

 

 

Money is great, but there are more valuable things in life. Just remember that you can always get more money, but there are certain things that can be lost forever.

 

 

Conclusion

 

In this article, I shared my 5 steps for achieving financial freedom. I’m not close to where I need to be by 25, but I can proudly say that I’m working towards it every single day.

 

 

photo credit: Benoit cars via photopin cc

 

How To Achieve Financial Freedom In Less Than 10 Years

In this article, I will share tips on how to achieve financial freedom in less than 10 years. By applying many different lessons and experiences, I share my plans on how to achieve financial freedom.

Photo Credit 401 (K) 2012.

 

 

Before blowing out the candles on my 20th birthday, I made a promise to myself. Most people believing in making wishes on your birthday, but I believe in setting goals.

 

 

Goals require you to take action while wishes just hope for the best. I set a goal to achieve financial freedom before my 25th birthday. That gave me exactly 5 years to achieve financial freedom no matter what.

 

 

I’ve seen far too many times how money has torn up relationships and restricted people from doing what they want that I didn’t want to live my life that way. Thus, I set a big goal without much direction on how I would achieve this.

 

 

Fast-forward to today (8 months later) and I still have not achieved financial freedom, but I’ve made quite a bit of progress towards my goal. Since I haven’t achieved my goal yet, I don’t consider this guide a full-proof way to achieve financial freedom.

 

 

However, I do feel that if you listen to what I have to share from my experiences and what I have learned, you will dramatically increase your chances of achieving financial freedom in less than 10 years.

 

 

In this blog article, I will share a comprehensive guide on how to achieve financial freedom in less than 10 years:

 

 

1. Turn Yourself Into A Brand

 

Early on as an entrepreneur, I hid behind my businesses. There was no Jeet Banerjee, it was all JB Media Force or StatFuse. After selling my first company, I quickly realized that all the hard work I had put in was instantly wiped out.

 

 

Even though I made some money from the transaction, I lost a lot more than I had expected. From that experience, I learned that you must create a brand out of yourself. People buy from people, not from business entities.

 

 

It is crucial to turn yourself into a catalyst for your projects. No matter what happens in your businesses, your name will carry on forever.

 

 

2. Diversify Quickly 

 

A lot of people say that focus is extremely crucial to success, but I believe you can be focused on numerous things at the same time. For me, I saw how hard recessions hit people because they had all their eggs in one basket.

 

 

You never know what can happen. Don’t count on one business or opportunity. Create numerous opportunities for yourself so that if one does hit a snag, you’re not completely screwed.

 

 

3. Stop Saving, Start Investing

 

If you make money, your natural reaction is to probably stuff it under your mattress or in your bank account. However, I learned that saving your money does absolutely nothing.

 

 

Instead, create a savings account that can protect you for a few months, but not forever. It may be risky, but the only real way to create massive wealth is to invest as much money as you can.

 

 

If you want to be financially free in less than 10 years, you have to diversify your investments. Find different things that you’re passionate about that don’t require a ton of time and invest in them.

 

 

I’ve lost quite a bit of money from investing in different things but it’s all part of the learning experience. You have to try and fail before you really know what works and doesn’t work.

 

 

4. Stop Exchanging Time For Money

 

I love building businesses online because I don’t have to exchange time for money. Investments are even better because I can invest even less time to make a good chunk of money.

 

 

If you have to directly trade your time for dollars, you will never be able to achieve financial freedom. Your money, investments, and time should be working for you.

 

 

By creating passive income streams, you have the ability to continuously build new things that can increase the amount of money you make. It’s trouble the moment your income stops growing because you don’t have enough time.

 

 

5. Learn To Say No

 

In order to really obtain financial freedom, you need to learn how to master your time. The biggest mistake I made early on was saying yes to every opportunity that came by.

 

 

I never weighed the long-term effects that each of these Yes’s had and I quickly found out that many of these decisions were hurting me instead of helping me. Think about each opportunity that comes by and see how much time you are trading in exchange for it.

 

 

From there, think about what the potential ROI is and divide by the amount of time you are spending. You should get a value that represents how much you are making per hour/per month.

 

 

Time / Potential Return On Investment = $$$$$/Hour or Month

 

 

If that number is lower than how much money you need to be making daily in order to achieve financial freedom in 5-10 years, you should pass on the opportunity.

 

 

6. Commit To Your Goals/Success

 

When I made myself this promise to achieve financial freedom on my 20th birthday, there was no going back. I convinced myself that this was going to happen regardless of how much effort it took.

 

 

If you set a goal or commitment to achieve financial freedom, make sure you love what you’re doing and are willing to see it through until the end. The word ‘quit’ should not exist in your vocabulary once you make this vow.

 

 

7. Educate Yourself

 

The first thing I knew I had to do was to create a plan. Even though my plan isn’t finished, I have a foundation. I was able to develop this foundation by simple studying the secrets of self-made millionaires.

 

 

Whether you need to educate yourself on your market or other successful people, constantly read and learn about what others are doing. Invest in your own education because that will be key to long-term growth.

 

 

8. Network Like Hell

 

It only takes one person to change your life forever. I’ve always heard the statement, “Business is all about who you know.”

 

 

While that isn’t 100% true, it can definitely have a huge impact on your success. The more people you know, the more potential doors you can open. In order to achieve financial freedom, you want to constantly network with people and develop positive relationships that may be helpful in the future.

 

 

9. Take Calculated Risks

 

Most people who have achieved financial freedom will tell you that they took some gamble that paid off big for them. I don’t recommend taking any risk, I recommend taking a calculated risk.

 

 

Life is all about playing the odds in your favor. Figure out the ROI in every risk and compare it to the possibility of failure. If you find out an investment has a 50% chance to fail but can make 3x the original investment, it’s a risk but calculations show it’s worthwhile. 

 

 

10. Hard Work Will Compensate Your Mistakes

 

At the end of the day, hard work prevails over everything else. The stupidest people in the world can make a ton of money just because they work harder than others.

 

 

It’s true that talent alone cannot get you to the top. It’s okay to make mistakes and hit roadblocks (because everyone does), but hard work will eventually get you where you need to be. When you commit to a goal as large as this, you need to be working your ass off. 

 

 

11. Spend Less Than You Earn

 

This is a no-brainer. You’re not trying to go bankrupt in the next 10 years, you’re trying to make enough money to live the rest of your life on.

 

 

If you start seeing a good chunk of money in, this isn’t a sign that you should start spending and upgrading your life. Live your life as you would if you were broke and stick to your plan. Your plan has worked thus far and continue focusing on it until you have achieved your end goal.

 

 

12. Patience Pays 

 

Lastly, you have to be patient. When I set that goal on my 20th birthday, I wanted to achieve financial freedom right away!

 

 

However, my mentors quickly taught me that great plans take a long time to unravel. As long as you are consistent and stick to your plan, you will eventually get where you want to be. Don’t let failures, mistakes, and slow progress derail you from your big plans.

 

 

Conclusion

 

Achieving financial freedom is an amazing goal that everyone should set for themselves. In this article, I shared 12 tips on how you can be financially free in less than 10 years.