Financial freedom

Have you ever wanted to spend more time with your family or friends? Have you ever wished to design your life in a way that gave you freedom to work in your job however many hours per week that you choose? Maybe you want to spend more time in your mission in life but can’t do it because of the bills you have to pay. What if I told you there are people out there achieving it right now? Do you believe that is possible for you? 

What is financial freedom? I define financial freedom as being when you have assets, like owning real estate or an incoming producing business not tied directly to the typical 40 hour per week job, that pays for your expenses. I want to unpack what this has looked like for some people.

Let’s say you work a 9-5 job and earn $50,000 per year. This is the income your earn with the skills and time you provide. Let’s say your expenses = $40,000 per year. This leaves you with $10,000 worth of savings per year. 

Now, in order to reach financial freedom we need to look at your asset column. What income do you earn from assets? Income that you earn from assets is often not directly tied to the 40 hour per week job that you have. These assets could be from a business or real estate property that you own part of. The key thing is that assets produce income. This is a huge area for you to focus on when pursuing financial freedom. 

How do you know when you have reached financial freedom? When the monthly income from the assets you own equal or exceed the monthly expenses you have, then you have reached financial freedom. Now what you do with those 40 hours per week that has been dedicated to providing financially is up to you! You are free to continue to work 40 hours per week in your job or you could cut back or even “retire.” 

Financial freedom is not easy to achieve but it is possible. Start by implementing small changes consistently. Get uncomfortable and take an educated risk. It may just be the first step in opening a new paradigm for your life.