Wealth Wisdom On How To Be Financially Free
For a lot of people, wealth and financial freedom are far-off dreams, but it needn’t be like that. If you want to find out the secrets on how to be financially free, keep reading. These are well-known tips and secrets that the wealthy will share with you freely if you just ask them.
What does it mean to be financially free? For many people, it means mansions, fast cars and private jets. The thing is, it is easy to accumulate wealth, but most of us just don’t quite know how.
Did you know that the twentieth century has brought a boom of first-time millionaires, and many of these people do not come from family money? They simply make their wealth using timeless wealth wisdom and secrets that only the ultra rich used to know.
You too can use these secrets to apply in your life to expand your personal portfolio and double or even triple your net worth. If you are wanting to find out how to be financially free, it is actually easier than you think to get started.
Being smart with money is not rocket science, but for many, it does feel like hard work. The fact that it is so easy to do is all the more reason more people should be doing this. The trick is to get your money to work for you and not the other way around.
Making money does involve some patience and restraint, and unfortunately in today’s fast paced world this does prove extremely difficult.
You need to break out of that cycle of waiting for pay day, fending off phone calls from creditors and watching your money flow away from you when all the bills arrive.
Don’t make the mistake of thinking that people with huge incomes are wealthy. Most people with huge incomes also have huge expense accounts to match, and anybody who finds themselves struggling to keep their finances in the black each month does not have financial freedom, no matter how big their pay cheques are. So don’t be fooled by someone who has a huge house or great car.
How to be Financially Free
Before you go any further in this article on how to be financially free, you need to create the right mindset.
Did you know that there is a poor mindset and a wealthy mindset? The rich have a different approach to life as they plan risk and manage their money in a different manner. They have a positive attitude to life and are not afraid to grab new opportunities. In order to create a wealthy mindset for yourself, you need to take an honest look at your life and your assets.
Create a starting place and from here you can move forward. Whether you have $1 or $100 000, it is all about the mindset and having the will to move forward in creating your wealth. It is important to know how much you are worth. Take stock of all your assets and your income and then subtract your debts. Don’t make the mistake of going through life financially blind, or you could get a shock when retirement time comes around.
What does being wealthy mean to you? Remember that the high life does not equal wealth. Does wealth for you mean not worrying about bills or how much is left in your account at the end of the month? Does wealth mean providing comfortably for your family? Does wealth to you mean the ability to afford luxury goods or designer labels? Does it mean enjoying a comfortable retirement?
In order to think positively so that you can implement the law of attraction, you need to get rid of debt and worrying about how you are going to pay the bills, as this just makes you feel negative about money again. Start by getting rid of debt. Creating more positivity in your life will not only bring you monetary wealth but lift up your personal life as well.
MONEY Master the Game: 7 Simple Steps to Financial Freedom
If you need extra inspiration in your quest on how to be financially free, I strongly recommend you purchase Tony Robbins best-seller, Money, Master The Game.
I have read this book from cover to cover, and it is a real eye opener. Tony proves that no matter where you are in life, you can still plan your finances so that you can become financially free. The book made me realise that you don’t need as much as you think you do in order to have a good nest egg for your retirement.
Click on the link above or on the book itself to find out more how you can grab your copy. This is an affiliate link.
Set Some Financial Goals
The next step to a wealthy mindset and how to be financially free is to set some goals. Try writing down on paper when you need to have all your debts paid off by, or how much in savings you plan to have by the end of the year. In order to be wealthy, you need to take steps in order to reach your goals, even if they start off small.
Try making small goals and in this way, you will make sure that you reach them. Every step you take and every dollar you save makes a difference, as they are used as stepping stones. See where you can cut down on expenses in order to get that savings account looking healthy. Many millionaires were able to get to where they are with annual incomes of less than $55 000. Even small savings eventually can add up to thousands or millions, thanks to the effects of compound interest.
If you are saving towards something, find a picture and cut it out so that you see it regularly. This will set your subconscious towards your specific goals. Never underestimate the power of your mind and your will. Never say that you can’t do it because the wealthy mindset knows that you can.
If you are not satisfied with your current level of earnings, you need to look for other employment with better pay and benefits. Finding ways to boost your income always helps, whether it is learning to invest or even working for yourself online, there are always additional ways to add to your nest egg.
Learn to generate forms of passive income for yourself. Passive means that you get an income with little or no effort from yourself. This could be in the form of rent from a property you own, returns from investments or even automated income from an online business just like I do.
Teach yourself how to delay gratification. Sacrifice the now for later. Wait until you can afford something before you buy it. Ask yourself before you buy something, “Do I really need this now”
Be realistic, wealth does not happen overnight. Patience over time will be well rewarded.
Keep track of everything that you buy each day as this is a great way to analyse your spending habits and see where you are spending too much and where you are spending too little. Think about it, if you buy a cappuccino every day for $5, by the end of the year you will have spent $1800 on cappuccinos alone. Ask yourself if you really need a new car every year that keeps you paying interest on your auto loans.
Pay off any debt you do have as soon as possible, and try to pay off more than the minimum on loans, as you will save a lot of interest in the long run and your debt will be paid off faster. The more money you pay now, the less you will pay later.
Stick to a budget and calculate this to the penny. This is what the super wealthy do.
Organise Your Finances
Have separate accounts for your money, Savings, investment and an earnings account.
Keep an emergency fund at hand which should be the equivalent of 3 to 6 months salary, so that if something unforeseen happens, you will be prevented from dipping into your savings or cashing in on your other income resources. Unexpected things in life do happen such as illness or accidents which may prevent you from working.
Don’t ever forget that you can grow rich on money that you are throwing away. A simple dollar can end up being an investment goldmine.
Wealthy people spend more time selecting what they want to buy than actually buying the product itself because they always look for the best bargain they can find before parting with their money.
Never accept a deal at face value. Don’t be afraid to ask for discounts. Apply this principle to everything you buy and watch those expenses go down.
Once you have set aside some money, it is time to invest. Don’t wait until you think you have enough, rather start with what you have, because even measly amounts can become great amounts over time.
Investing is the art of making your money work for you instead of you working for your money. Many wealthy people have perfected this art of creating wealth by investing. This type of wealth is sustainable and continues to generate an income, regardless if you can work or not.
A good broker can help you decide on what type of vehicle is best to invest in, that will suit your budget. Try to do some research yourself on different types of investments and how risky each one is.
Invest Your Money Wisely
Here are some options to look at:
This is when you purchase partial ownership of a company and earn annual profits. Try to buy when the prices are low and sell when the prices are high, as this practice is relatively low risk. This type of investment is governed by the market and is considered a high-risk investment.
Bonds are small loans to companies or governments that the investor pays for. These normally have fixed interest rates and are generally considered safe investments.
Mutual funds involve pooling money together with other investors to buy a full portfolio that is run by money managers. This is a good option to get started on as it normally has a diverse portfolio.
REITs are companies that deal with ownership of real estate and they manage a portfolio for you. They are also diverse and it is less hassle than managing the properties yourself.
Other Alternatives on How To Be Financially Free
These are generally high risk, where the payoff could be huge, but the risk is high. These types of investments include Forex, Real Estate and other high-risk securities. These types of investments are generally done with money you don’t mind losing or can afford to lose.
Investing Rules and Tips
Try to spread out your investments so that you can be guaranteed several streams of income. Take the time to learn about investing before you start spreading your money around. If you have a lot to invest, get some professional advice. As the saying goes, don’t put all your eggs in one basket.
Start to invest early, as the longer the money sits around, the more money you will make on interest. Never invest if you are not willing to wait. Patience wins the day. If you take your set amount of money to put away each month before you pay your expenses, you will learn not to even miss it, as it will be out of your account and out of your mind. Each year when you get your increase, add a percentage of this to your savings.
Accept with your investment, especially if in stocks or high risk, that you could experience some loss over time when the stock goes down or remains stagnant, but hang in there as it changes again before you know it.
Stay away from get rich quick schemes in your quest on how to be financially free. They are exactly that, schemes.
Make your taxes work for you. Learn how to do them yourself and learn where you can save or get money back. Most people are ignorant here.
Don’t be afraid to do something humble. If starting a business, start off small. Do something you enjoy . If you don’t want to start a business, then invest in a business. This will give you profits without all the effort.
And finally remember that money is meant to be shared not hoarded. 10 percent of your worth is meant to be shared according to Rockefeller. Find a charity that means a lot to you. It always feels good to help somebody in need.
There is no shortcut to instant wealth. If you want to be wealthy, you need to play a game that lasts for years.
This is the true path to follow if you want to find out how to be financially free.
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Quite some powerful tips you’ve got there!
I must admit I’m the worst at making financial goals. I tend to set higer bars than I can achieve. And this gets me very overworked.
I have bookmarked your site to keep stopping by once in a while to get help keeping in check with my goals and finances.
Thanks a lot, you’ve really opened my eyes on how to be financially free.It’s a huge insight!
Thanks for stopping by Dave, and glad you found some inspiration. Good luck with your financial goals
I would totally agree with you that having the proper mindset is the key to becoming financially free as you mention in your article. Without the right mindset, even people with money can loose in the long run.
You give some great tips on how to get started and what you need to do. The book you mention would probably be another great way to get started with improving one’s mindset by reading it as you have.
Great article and I’ll check out the book to boost by positivity up a notch.
Thanks for stopping by Travis. You are correct, before we start to improve our finances, we need to have the right mindset. We need to also move out of the consumer mindset and into the investor mindset, which will be a huge challenge for some.
Having the right mindset to attract financial freedom is the fundamental component to building wealth. My mind is focused on my online business that I’m slowly growing and not about stressing about bill (although it happens time to time but I don’t dwell).
I’ve never read Money, Master the Game but I am a fan of Tony Robbin. At times I listen to him in Youtube on my way to work in the morning to get me motivated about building my online business so I can leave my 9-5 job and continue growing my company. I highly recommend listening to Jim Rohn and Steven Jobs.
I’m currently fascinated by the stock market and investing in young companies that have long-term potential. How much money do you think I should start investing in? Any new companies that you think it’s the right time to invest on before they get huge?
I don’t trade in stocks myself as I feel I don’t know enough about them yet, so I use a financial advisor and I give him what I can afford each month to invest on my behalf. So far so good. There is never a set amount, just do what you can afford. The earlier you start, the better off you will be in the future.
A really powerful article.
It all starts with the Mindset. And wealth creation is no different.
WIthout the correct mindset, you get fooled by all the frivolous stuff.
Thanks for the few tips on how to make additional income. I’m really glad that we have a fantastic platform like Wealthy Affilaite where you can get like-minded people together with great training and support to help us along our “financial freedom” journey.
Wishing you all of the very best!
Thanks for you comment Peteni and great to see a fellow Wealthy Affiliate stop by.