Financial freedom is online and it’s also offline. In fact it’s everywhere for everyone to access. You just need to recognize it, get your house in order and go for it.
Financial freedom means many things to many people. But in my books financial freedom simply means being able to do what you want, when you want, without having to worry about the cost!
So in this post I’m going to outline my step by step to ‘financial freedom is online’ framework that has worked for me. So please read on and take a few steps forward so that you can achieve your financial goals and live the life you want.
3 Steps To Get Your House In Order
Getting your house in order is not an easy task. It takes a degree of dedication to right some of the financial wrongs that have gone before.
The good news is that developing a degree of dedication is going to help you on your road to success. So I recommend following all the 4 steps below.
Sure! you could probably miss steps 1,2 and 3 and still succeed, but it will mean that you’ll be sailing a leaky boat. And the money and your efforts will be running through your fingers.
4 Steps To Financial Freedom
Step 1 – Clear Bad Debt
Step 1 of the step by step to financial freedom is you number 1 challenge and that is to clear bad debt. Bad debt such as credit card or personal loan debt is a huge drag on your cash flow so eliminating this bad debt is the first step to financial freedom.
This high interest bad debt makes it a lot harder to get further loans for good debt such as investment debt such as loans for investment properties. It also makes it harder to save in general, so debt must be eliminated as soon as possible.
The best way is to start is with your lowest debt first. Make extra payments sure on this one while you pay the minimum on your other debts, then pay as much extra as you can until it is paid off. Completely pay off this debt then you can pay this extra amount on the next debt and so on until all of your debts are paid off in full.
Now you can use this extra money for paying yourself first!
Step 2 – Pay Yourself First
Step 2 of the step by step to financial freedom is to pay yourself first. If you want to achieve financial freedom, you need to get into the swing of, or the habit of paying yourself first.
You can do this by opening up a separate high interest bank account and set up a direct debit, so that as soon as you get paid an amount is transferred straight into this bank account. Arranging this only takes a short visit to your bank, these days you can probably even arrange it online.
This money that is accumulating is then to be used ONLY for investing in things that will gain in value. We like to call this our JJ account, or jam jar account. Yes it’s a silly name but it has worked very well for us over the years.
Ideally you should transfer 10% of your income, but the key is to transfer this money as soon as you get paid. Remember this is your money to keep, to invest, before you pay any of your bills and expenses.
Step 3 – Invest Your Savings
Step 3 of the step by step to financial freedom is to invest your savings.
Once you build up your jam jar account, you can start investing. Invest in something that you fully understand and can deal with relatively small sums of money.
Investing doesn’t mean you have to invest in shares. Stay away from shares unless you really know what you are doing.
Perhaps you could buy and sell products on eBay or Gumtree and roll all the cash into your jam jar account.
Yes this is trading rather than Investing. But when you have a sizable sum of money you could use the cash to fund real estate investments that will eventually grow in value.
In time you will build up a large asset base that will generate cash flow income and will give you financial freedom.
Tip! – Use the rule of 72 to quickly assess investments.
The rule of 72 is used as a quick way to estimate the number of years it will take for an investment to double based on a particular rate of return.
If you invest a sum of money at 6%. Then divide 72 by 6 to find that it will take about 12 years to double. If you expected a 9% return, it would double in about 8 years.
The rule of 72 can also be used to work out the rate of return you need to double your money in a specified period of time.
Divide 72 by the time you need to double your money. For example, if you want to double your money in 12 years, divide 72 by 12 to find that you need about a 6% rate of return.
Step 4 – Create Streams Of Online Income
Step 4 of the step by step to financial freedom is to create multiple streams of income, from a variety of sources online.
There are many ways to do this but the easiest is to create streams of income on the internet. The internet is certainly not going away in a hurry and the potential to make money online is amazing. Though to be honest it still takes time and real effort to succeed.
Take a look at a previous post of mine to find out how you can earn money on the Internet. It still surprises me just how easy it is to get started with your own Internet based business.
Step By Step Summary
Above all remember this: ‘cash flow is king’ and if your cash flow exceeds your expenses, then you’re wealthy!
- Clear Bad Debt
- Pay Yourself First
- Invest Your Savings
- Create Streams Of Online Income
So in summary if you follow these 4 steps to financial freedom you will be well on your way to that dream lifestyle that you have always imagined.
Financial Freedom Is Online
The road to financial freedom is online, but It will take some effort to put all 4 steps in place. It’s not an easy road to follow. It takes a lot of hard work to generate even a small income. But I promise you that once the first 3 steps are in place you’ll be in a great position to pursue your online wealth.
If you are ready to take step 4 and you really want to learn how get on the road to financial freedom. Then take a look at my steps to success and discover how you can get started for free.