In order to gain financial freedom faster, we need to be clear on the definition. Although both parts must be met, one part will determine how fast you get it. So here it is:
Financial Freedom is achieved when all your expenses are covered by all your income and YOU DO NOT HAVE TO PHYSICALLY WORK TO PRODUCE THAT INCOME.
The emphasized part is understood by everyone and it is critical for basically two reasons.
One, it gives you the freedom to choose. If you don’t want to work, fine. You have other income to cover expenses. If you choose to work, you are only doing so because you WANT to. This makes a world of difference in your attitude and performance, even if it’s the same job you do now. You’re doing work for the love of it, and ironically, most people find themselves working more because now there is passion and pleasure.
And two, income will keep coming in even when you are sick and unable to work. So this also acts as a form of disability insurance which many of us do not carry. It also allows us to buy our own private health insurance which is not conditional of employment. As long as you pay your premiums, you are covered.
What happens to your employer sponsored health insurance if you’re unable to work for 3 months and require medical care during those months? Most of us will lose it because it is conditional to the amount of hours we work per week. So, just when we need it most, we will not have it!
So how can we gain financial freedom faster?
Well, take a look at the first half of the definition, “…covering all expenses…” If you really wanted financial freedom sooner, rather than later, trim down the expense side.
As your passive income grows, so can your expenses. But, in the mean time you are living financially free! If you want to spend more, simply create more passive income. Just by simply cutting the expense side you can gain financial freedom faster!
What would your expenses be if you shared living costs, i.e. rent, electricity, phone, transportation, etc. Imagine if you trimmed your expenses to $1000/month. Getting $1000/mo. passive income with rental real estate is totally doable in just one year (in the right area and if you have access to cash, of course). One rental house pulling in $250 positive cash flow works out to an acquisition pace of 1 house every 3 months.
Don’t have access to that kind of cash? Conservative? Don’t want to deal with renters? The online opportunities solves this problem. Big businesses such as Amazon and Walmart are looking for affiliate marketers to help them increase online sales. Kyle and Carson are two well respected marketers that have made millions as affiliates and have started an online school for those that want to be Affiliate Marketers.
So again, to gain financial freedom, ohhhh…let’s say, within 5 years or LESS, choose a form of passive income that fits you, learn it, then build it. Now the only thing that will determine how fast you gain financial freedom is how much your expenses are.
