The purpose of life is to live a happy, free and loving life. The main reason most people don’t get what they want is because they don’t know what they want. Clarity leads to power. Power is the ability to act to achieve financial freedom.
To become financially free you have to earn money without working, this is called passive income. You can live your desired lifestyle. You have the choice then to do what you want with your time, with who you want. How much money will it take to live the lifestyle you want? Make an annual estimation and add up 50% for taxes and inflation.
Types of passive income
First type of passive income is investment income from stocks, bonds. Second type of passive income is passive business income, when your business is working for you as real estate rental income when the cash flow is positive, franchising, licensing, royalties from books, tapes, music, storage units, car wash, Internet marketing with auto-responder.
Systematize your business to create passive income, so your business can run without you. It’s better to have multiple streams of passive income. Set one stream of passive income first. Focus your time, energy and effort on it and when the passive income stream is successful, then build your next stream of passive income.
Critical factors to become financially free
The critical factors you need to focus on to become financially free are: working income, savings, investments, passive income and simplifying your life. You are in control how much money you spend. Do you spend less than you earn? Take a look at what you are spending your money on.
The key is to pay attention to each critical factor individually and also in combination. Have an excellent money management habit. Separate your income into separate accounts for specific purposes.
If you are a business owner separate your personal and business finances. The easiest way to separate your personal and business finances is to write yourself a paycheck twice a month. You receive income from your business that you can manage.
Anyone can become financially free. The key is how you manage your money. The five critical factors of the financial freedom formula are interdependent, which means that they must work together in synergy. Take a look at the factors, are you focusing on all the critical factors?
Why are you not reaching your financial potential right now? Focus on all the critical factors of the financial freedom formula. Manage and invest your money. When you begin managing your money, it will grow and you will keep more money. Learn and act on what you learn about money and investing. Work on creating passive income streams.
For your financial success!