Put most simply, financial freedom is not having to work for money. Truly wealthy people have their money work for them because they value their time. Time is your most valuable asset and being financially free means that you can use your time on this planet however you wish, rather than exchanging segments of your life for a wage.
Each of us has a limited number of hours in our lifetime. When we are old and looking back at our lives, it is not likely that many of us will wish we had spent more time at work! The majority of us will probably wish we had had more time to fulfil our goals and dreams.
By changing the way you think about money and the way that you look after it, you can set yourself on the path to financial freedom.
To escape the “Rat Race” or the “Just Over Broke – J.O.B.”, you need to create what is called “Passive Income“.
Passive income is money that you receive without having to do much after the initial effort. Completely passive income is a bit of a myth because you will still have to manage whatever income stream you create and you will need to spend time educating yourself in whatever it is you choose to invest in. I believe it is a fool who blindly hands over his money to someone else to invest for him/her at a commission. Do yourself a favour and educate yourself!
The most popular passive income streams are:
Rental property – rents come in even if you don’t get out of bed in the morning.
Businesses that can run without you – note that the business must be able to run without you otherwise you are still an employee exchanging segments of your life for money. (See Robert Kiyosaki’s Cashflow Quadrant).
Royalties from intellectual property – publish a book or create software that will generate royalties, so that your initial effort is repaid many times over.
There are other ways to generate passive income and the more you ponder the subject, the more opportunities you will notice!
I challenge you to change the way you think and come up with some alternatives for funding your future, rather than relying on your job.