If you do an online search for the means of obtaining financial freedom, you’ll probably find a whole bunch of articles that tell you how to save money, avoid credit cards, and work as much as possible. Here are a few countercultural tips for actually obtaining financial freedom.
#1: Buy Assets, Not Liabilities
The rule of thumb is simple: assets give you money, while liabilities take money away. That said, many things you probably thought were assets are actually liabilities, such as your house and your car. Here are some things that can help you generate income: stocks that produce dividends, rental properties, and shares of ownership in other people’s businesses.
#2: Learn About Finance
Learn about credit, budgeting, stocks, bonds, economics, and everything else that has to do with the dollar sign. The more you know, the more empowered you become to leverage investments and generate some income in your favour, instead of avoiding opportunities because you don’t understand what they’re all about.
#3: Break Free from the Grid
This one is often the most difficult for many people to achieve, especially if they’re entrenched in a nine-to-five career path. While some of us are happy with the salary we get, most people will always find themselves living paycheck to paycheck. Stop relying on someone else to give you some measly earnings, while they reap the benefit of your work. Develop your own business, or get engaged with a profession that allows you to control your financial destiny, such as real estate, e-commerce, sales, or freelance work.
#4: Stop Hiding Money under Your Mattress
It’s understandable to have a rainy-day fund set aside to cover one to three months of income, but socking away tens of thousands of dollars in cash is pointless. Why not put that money to work and purchase some of the income-generating assets we mentioned earlier? One of the crucial differences between rich people and poor people is that while poor people work for money, rich people have money work for them.
#5: Rethink the Idea of Money
The more you obsess over something, the bigger a reality it becomes. Find ways to stop worrying about money. Give ten per cent of your money away to worthwhile causes. Understand that money doesn’t buy happiness, and that the point of making money is to provide for your needs and the needs of your family…not just to have money. One of the biggest secrets to becoming financially independent is to stop letting money control your life.