Financial freedom is defined as the ability to live for the rest of your life without having to work for money.
5 Rules to be Financially Free
You wanted my top 5 rules to be financially free, but I’m giving you a bonus of five, so what do you have to lose?
These are NOT exactly the 10 rules for financial freedom used in conventional wisdom, but they work for me.
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1. Avoid getting a job at all cost. Never trade your time for money. You’ll just be setting yourself up to become a slave for someone for the rest of your productive life. It is better to suffer the inconvenience of going broke initially, but in the end it pays dividends.
2. Don’t start a business. Find a customer. Forget your passion for the moment and find out what the customer wants and deliver value. The customer will give you the money to enjoy your passion. My definition of business is different from the definition by 99% of the people out there. I define business as “a customer”. And customer is business. Don’t waste precious time chasing jobs that don’t exist to be Financially Free. Instead find a customer. A customer is simply anyone who needs a service.
3. Don’t save money. Instead you should invest money to be Financially Free. Saving is a terminology used by the poor to give free money to the rich. Learn the terminology of investing. Investing is a terminology used by the rich to become richer.
4. Set up a system. Never operate without a system to be Financially Free. A system is simply a way or ways to deliver goods and services to a customer. In the modern day and age, offices are not part of the system. They’re sometimes considered an inconvenient bureaucracy which intimidates customers.
5. Empower yourself by developing a reading habit. Self-improvement is key to be Financially Free. Read. Read. Read. Read business books. Read investment books. Read biographies of the rich. Read entrepreneurship books. Read survival books and guides. Read philosophy books. Read story books. Read history books. Learn what the rich do by studying their philosophies. Understand their way of thinking and you’ll be nearer to financial freedom than 99% of the people out there.
6. Don’t go on holiday or vacation at the same time as 99% of the people do. Majority of them are employees on annual vacation. By this time costs of air fares are high, hotels are fully booked and vacation places are overcrowded. Instead find the most-in-demand goods or services during vacations and holiday seasons and make money while others are spending. When it’s your turn to go on holiday, cost of air fares will be low, hotels will be cheap and you’ll enjoy true privacy with your family or spouse.
7. There are two types of people in the world, my friend – Consumers and suppliers. Make sure you’re always be on the supplier side.
8. Never borrow money to finance consumption. Always borrow money to finance investment.
9. Avoid gossip. It only wastes precious time and sucks your brains out of you.
10. You can’t choose your parents but you can choose your friends. Make the most of it by choosing mentors and the type of friends who have more knowledge than you.
Untimely Financial Principles.
- Don’t work for money. Focus on making money work for you.
- Never say ‘I can’t afford it, instead say ‘how can I afford it?’
- Never buy things on credit. If you can’t pay cash for it then you can’t afford it.
- Focus on investing rather than saving.
- Pay yourself first, 10% of everything you earn is yours to keep.
- Know the difference between good and bad debt. Good debt puts money in your pocket, bad debt takes money out of your pocket.
- An asset puts money in your pocket. A liability takes money out of your pocket. Spend your money buying assets.
- Turn your working/active income into passive income. Passive income is income that is generated from assets you own.
- Focus on improving your financial literacy. 9 times out of 10 financial literacy is self taught. It is not taught in school.
- Always keep an emergency fund to be Financially Free, this should be at least 5% of your income.
Being free and liquid is the only way to live as far as I’m concerned. It takes a powerful mind to make this kind of lifestyle happen, do you have it?
PAY ATTENTION TO THIS You should compose a rule-based plan around what your goals are from investing and trading and also for the type and style of investing and trading you wish to engage in be that swing trading, position trading. dividend investing, growth investing, or whatever. Your plan needs to be specific to what you’re doing.
If you’re a brand, new raw beginner you need to start off slow and build on success. It’s the only way you’ll ever be able to make a lot of money doing this business intraday trading is not the way to accomplish that.
One last piece of strong advice. No matter what you decide to do, any money you start out trying to “trade” with should be disposable income, meaning, if you lose all the money it can’t hurt you or your family in any way.
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Save as much as possible (possible means 10% to 50%) of your net income and then increase your savings over financial events such as cost of living increases, and promotion. If you are working and the company has a 401K plan max it out.
Cut out all excesses such as premium cable type channels, new as compared to certified used cars, simplify clothing, stop eating out so much and learn to cook, and attend to your health for many reasons such as unhealthy is expensive and ruinous.
Invest early and regularly throughout your life. Earlier due to compounding as it a wonder of the universe. It is too difficult to play catchup.
Care about all sentient beings to be Financially Free, especially children. Take that $20 burger out of your mouth and give the poor and hungry $10 and allow yourself to smile your deeper self. You are now $10 richer as well as happier. Bread on the water. Or save a lot more by offering your time. Fill up some coffee cups at a homeless shelter.
Invest in index stocks, worldwide but mostly American to be Financially Free. Have patience and persevere with your well thought out investment plan. Well thought out could be ones used by others with success. None of know all we need to know but some come close. Buy low and if you thoughtfully need to sell, sell high. invest in yourself, like get an executive or on line college degree at a respectable school to be Financially Free.