How to invest in your future and create your own freedom
Money isn´t everything in life. You won´t be happier if you have more money. However, the money will grant you some amount of freedom. With enough financial security, you can do the things you like and whenever you want to.
Wouldn’t it be nice to stop worrying about your children’s education, your mortgage, or if you will have enough money when you retire?
Just like any other area in life, you can have all the things you want if you just put your focus on it and raise your targets. Here is my formula for reaching my goal to be financially independent:
Set your target
You can´t hit a target you don´t see. Start by writing down the number of how much money you would like to have in a certain amount of time. After that, you multiply it with 10. Why do I say that?
Well, because if your target is too low, your actions will be accordingly, and you most likely will get a poor outcome.
Never lower your target. That is like saying to yourself that you won´t succeed anyway.
Think about the purpose
The driving force for you to take action isn’t the number itself. Instead, it´s your purpose why you want to have the money you targeted in the first place.
It could be that you would be able to realize your dreams, experience the joy of being debt-free, be able to travel the world, or whatever your desire may be.
Write down your purpose besides your targeted number and keep it in mind whenever you´re in doubt during your journey to financial freedom.
Store your money
If you remember the times when you played Monopoly when you were a child, you learned that you won, the game if you had all the hotels at the most expensive streets. You got them by saving your money to afford them when the opportunity came up.
The same thing applies to life. Store as much money as you can and don´t count on them for a long time for them to grow. We tend to use the money we have in our bank account. The more money we have, the more expensive our buying habits become.
Grant Cardone says that you should save 40% of your income even though it´s a tough thing to do.
The aim is to generate a passive income that you can live on it without having to work. That takes time, but it´s achievable if you put your mind to it.
Don´t lose your money.
When you store your money, you mustn´t think in short terms and buy stocks or other financial papers with high risk. Fluctuations in the marketplace might easily erase all your savings in a year.
Instead, you should invest in secure financial papers such as Mutual index funds with low fees. Over time you will withstand a volatile market and be able to see your money grow exponential through the excellent force of compounding (interest rate on the interest rate)
Invest in yourself
Your ability to generate cash is also essential. Therefore, you should invest at least 3% of your income on yourself. If you lose all your material possessions, you will at least still have yourself and would most likely be able to generate the money again.
The knowledge you bring to the marketplace is in direct proportion to your income level.
Diversify your income streams
After you have written down your money target, you need to write down everything you can think of that could help you reach your goal. Every ide counts and makes sure not to judge yourself at first. Then you circle the activities that have the highest potential and start acting right away on the ones that you have chosen.
Diversify your income streams to be more resistant to market fluctuations. If you can´t come up with the ides yourself, there are a lot of suggestions on Youtube or other social media.
Put massive action to your plans.
The thing that separates the one who succeeds and the ones that don´t is the amount of action they put into their focus. There are no shortcuts to success, and you have to be willing to put in a lot of work to achieve the things you want in life.
Think of yourself as if you possessed superpowers and that you will never quit. You will learn along the way, and the more times you fail, the stronger you get. Fail forward and fail faster than the others, and you will achieve your goals.
Sell yourself
Even though you have a marvelous product or knowledge, you still have to sell it. The things you are offering won´t reach the market if no one is aware of them, and this is the most common mistake many people do. They don´t invest in themselves, and they don´t sell consistently or intensively enough.
Believe in yourself and start your journey to financial freedom, and you will be the winner of your Monopoly game in life. And remember that you are responsible and in charge.