Financial freedom—it really is the American dream. For you, that dream of financial freedom could be a retirement fund. For others, it’s owning a home and a steady income with no debt. Whatever financial freedom means to you, you know you want it and can’t imagine not working towards achieving that goal.
Money determines the quality of our lives whether we want to believe it or not—it determines most of what we experience in life. From what we eat, to what kind of car we drive, to where we live, go to school, how good our health care is…you get the picture.
If you don’t master your finances and achieve financial freedom, you will always feel like a prisoner to money. You can stop playing that constant tug of war and take back control of your finances and life. Financial freedom is more attainable than you may think. Really! I’m here to help you get on the right track with some awesome tips to achieve your financial dream.
Use these 3 tips to achieve the sought after financial freedom.
Define Financial Freedom
Financial Freedom can mean very different things for different people. For some, a permanent income stream of $200,000 will equal freedom. For others, pursuing a passion or starting a new business will be freedom from the life they left behind. Whatever it means to you, determine that goal and write it down. Place your definition of freedom somewhere where you will see it everyday.
Plan for It
Now that you have your unique definition of Financial Freedom, how will you achieve it? First, realize that your skillset is your single best investment. Your income and the lifestyle you choose to live now will dictate how much extra money you can invest. A great tool I use is to simply add a $0 onto whatever purchase I’m making. For example, “Is this $40 dollar meal worth $400 later in life?” Asking yourself this simple question will put your current purchase into a long-term perspective.
Accumulating wealth is really about accumulating assets that work for you, such as securities (stocks, bonds), a business, rental property etc. Know the characteristics of each asset type before you invest and make your money work for you.
Business owners represent a large portion of the millionaires in our country. Owning and running a business isn’t for everyone though, so be honest with yourself before starting a business. Most tend to focus on the paychecks the business will produce, but those only help in the NOW. Instead, work with Certified SBA Valuation Experts to help focus on building the sale value of your business. The sale of your business will typically be the largest single payout in your lifetime.
Pull the Trigger
Sometimes, step 3 can be the most challenging step – especially for business owners. Whether you own a business or not, when you have your definition of Financial Freedom within your reach, don’t hesitate to reach out and grab it. For business owners, when the sale of your business will generate the income to grant you freedom, SELL your business. This can be incredibly difficult, so the earlier you make the decision, the better. Checking the sale price of your business on an annual or more frequent basis will make sure you don’t miss your opportunity to attain freedom. One last thing, when you sell your business, focus on offers made in CASH only! A true separation from your business is crucial to not worrying about the operations of your business when you’re not in control anymore!
We all want to get out of debt but it can seem like a long and hard road to financial freedom. It’s easily doable if you follow these 3 tips and remain dedicated to becoming financially free!