Everybody talks about freedom and money, myself included. Most don’t tell you how to do anything, because they don’t know it themselves. Today, I’m going to tell you how to get financial freedom.
See, money buys happiness. You just have to understand money buys happiness by buying freedom. Freedom to do whatever you want.
I’ll let you in on a little secret…
There’s never going to be a better time to become financially free than right now.
Why This is the Best Time to Gain Financial Freedom
You always needed financial freedom, but the longer you wait to get it, the less likely you are to ever have it.
The right time to start anything was yesterday, but you can’t live in the past. Life isn’t about the past.
Hell, life isn’t even about the present. Life is all about the future.
You held off on becoming financially free because you believe it will be easier in the future. This is backwards. Future you isn’t going to have money that current you isn’t making.
There is no immediate success. It’s going to take time. The longer you wait, the longer it’s going to take.
Don’t start tomorrow, don’t start next week, don’t start next year. You have to start today, and I’m going to tell you how.
Maintain War Chests for Financial Freedom
If your income streams were dammed dry, how long can you stay afloat? A 2016 Forbes article suggests you can’t, if you’re like the 63% of Americans who don’t have a war chest.
A war chest is a cache of cash for tough times. If you’re a government, tough times means war. If you’re a corporation, tough times mean a year you operated in a deficit.
But you’re not a government or a corporation. You’re a person. Your war chest is your protection from the financial uncertainty of tomorrow.
If you don’t have a war chest, you don’t have financial freedom.
How Much Should My War Chest Be?
Take your total monthly expenses and multiply them by six. Don’t just calculate your bills, calculate every single little expense.
Your war chest should be enough for you to live on and maintain the same quality of life. Since you’ll be in mild panic mode, you should spend less than normal.
Your six months expenses will probably tide you over longer than six months, if you’re focusing on breaking the dam in your income and not on spending more than you make.
A War Chest is an Island
Your war chest is independent from your other savings and investments. The goal is to have six months expenses set aside.
If you could lose that money and it would make no difference in your life, then it is a war chest. If you can’t afford to lose it, then it isn’t a war chest.
It’s your operating expenses money that you called a war chest to make yourself feel better.
Once you’ve set aside a war chest and feel as though you could add money to it, don’t. Start another one.
You have financial freedom when you have a war chest. When you have several, you have the power to say NO.
You no longer have to do things simply because you need money. You can focus on collecting income streams doing things you like.
Collect Income Streams for Financial Freedom
When you have multiple war chests, you won’t need to do work you hate just to get additional income. This is why everyone loves the idea of multiple streams of income.
Everyone loves the idea of multiple streams of income. They love the idea, but they usually don’t do anything to get them.
People have the false god of passive income in mind. Passive income doesn’t exist, although some things are pretty close.
Understand that you will have to work for every single stream of income you have. There is no free lunch, and that’s fine. Passive income isn’t what you want anyway.
What you want is part time work for full time pay, as many times over as possible. It doesn’t matter how small an income it is, you want as many as you can get.
How Multiple Income Streams Create Financial Freedom
It’s next to impossible for all of your income streams to be cut off at once unless you don’t understand diversification.
When you lose one, you don’t have to fall back on your war chest. You still have several other income streams to rely on. That’s financial freedom.
The Greatest Freedom is Freedom of Choice
The number of revenue streams you can accumulate is now only limited by what work you’re willing to do. Investing your money wisely can only happen after you’ve invested your time wisely.
Invest the Money from Your Income Streams
There are five appropriate places for you to put all the money your income streams bring you.
Your personal expenses
Your personal savings
Building additional war chests
Funding new income streams
Investing in your future
All of these are investments in one way or another.
Your personal expenses are your investment in yourself, which is your biggest asset. If your health suffers because you cut your personal expenses too low, you won’t be as productive.
Your personal savings exist only as a waiting room for your money. It spends time in your savings while you determine where you’re going to invest it.
Building additional war chests is critical. As my leatherneck friends like to say, “One is none and two is one”. As soon as you dip into your war chest, you no longer have a war chest.
New income streams aren’t free in most cases, and you’ll often need “start up money”. You don’t always have to spend money to make it, but you usually do.
Finally, we come to investing in your future. Most people tend to think of the stock market, which is one place to invest. Don’t forget about alternative investments, though.
You have to have options to be financially free. You now have the “how” and “why”. Nothing’s stopping you.
Get to it.