There are some legal ways for financial freedom-
Marry a girl or a boy with a rich father.
Or
Get adopted by a rich, childless couple.
Or
For the normal guy or girl like you and me. Start saving most of your income, Reduce your expences, invest wisely, build up your financial freedom corpus. You will need around 30 times the money of your yearly spending, on the safer side to achieve financial freedom.(we will discuss how I came to this number in some later post)
This blog is for normal people so we will discuss about the last option in detail here.
From the way itself you will understand, the yearly spendings have more importance than what you are earning. This is because, spending is the most influential factor here. If you can't control your spendings then you will have no control over your financial freedom. Even if you achieve it, you will run the risk of losing it.
THE KEY IS TO INCREASE YOUR PASSIVE INCOME MORE THAN YOU INCREASE YOUR EXPENCES.
One more advantage is, if you reduce your spending then automatically it will work as your earnings, which will go to your freedom fund. You will learn to live with it which will help you save for the whole life, which is a permanent change.
To achieve the ratio of investments of 30 times to your annual spending you can increase your investments by increasing your earning or by reducing your yearly spending or by dong both.
But some how you have to reach that number to be financially free.
It sounds tough, but not so once you start taking baby steps towards it. That's my favorite way, ONE SMALL STEP AT A TIME, AND YOU ARE ON THE WAY TOWARDS YOUR GOAL, ONE STEP CLOSER EACH TIME.
We will discuss how to save money and what to do with it in later posts.
Till then use your brain to make efficient spendings...
Sumit
The POWER is when,
you use ODDS
to get EVEN..
