Do you remember the last time your car broke down? How sick you felt when you knew you’d have to pay for that unexpected and unplanned repair bill?
Now, what if you didn’t have to worry about paying for it? It was just an inconvenience. That’s what financial freedom feels like!
The question of how to find financial freedom is asked by many, but hard to achieve.
But can it be done? Of course it can.
Anyone can create financial freedom with proper advice and determination. Some paths are harder than others, but today I want to share with you an easier path to create your own freedom.
This path is something I discovered later in life, and wish I would have started long ago. Well, not that long ago… It involves the internet, and it wasn’t available when I was younger, lol.
But it’s never too late!
Now, we’ll be able to retire without worrying about having enough income to travel, spoil our grandchildren, or pay for those unexpected bills. And I’ve accomplished all this with my own online business.
If you’d like to know where I learned how to succeed online, check this out!
- 1 What Does It Mean To Be Financially Free?
- 2 How To Handle Setbacks
- 3 Here Are My 7 Steps To Financial Freedom
- 4 Would You Like To Know How I Did It?
What Does It Mean To Be Financially Free?
Financial freedom means different things to different people, and there’s no one right answer.
What Does It Mean To You?
- Not having any debt.
- Having enough money to afford the lifestyle you want for your family.
- Having the freedom to change careers or locations.
- Being able to retire early and comfortably.
- Having a passive income so you don’t have to work.
This list can grow quite large, depending on each person’s definition. Basically, you need to decide for yourself what it means. A good way to determine that is to ask yourself a few questions:
- What would you like to do if you didn’t have any debt?
- Do you have 3 month’s income saved up to cover unexpected expenses?
- Is your debt keeping you from something you really want to do?
We also need to make the distinction between financial freedom and financial independence.
Is There A Difference?
Financial independence means you have enough wealth to live on without having to work. And I think we can all agree that reaching that point in life would be incredible! The sooner the better!
On paper, it’s simple… You need to be receiving more money per month in passive income than you’re spending. Realistically, we need to plan and set goals to get there.
Have you heard of Tony Robbins? I’m sure you have, unless you live under a rock somewhere, lol. He has written many great books about financial success.
What Tony Robbins Teaches…
In his book “MONEY Master The Game“, Tony discusses several goals for us to strive for. He calls them your “levels of financial dreams”. There are five levels in all.
The last three would take a lot of work and sacrifice, so you may not be willing to go that far. I’ll lay them all out for you so that you can see how it all adds up. One is a stepping stone to the next.
#1: Financial Security
Your first level is when you’ve got your basics covered. You’re not going out to eat much and you take frugal holidays.
Your calculations would include:
- Rent or mortgage
- Utilities (gas, power, water, phone, etc)
Write down these amounts on a spreadsheet and total your monthly costs. Then times it by 12 and you’ll know what kind of annual income or passive income you need to cover all your foundational costs.
So let’s say your monthly costs come to $2500. You would need a net income (after-tax) of $30,000. Anything over that should be saved for emergencies, children’s education, retirement, travel, etc.
This first level is probably enough for most people in this economy. If you don’t have to worry about these costs, it can relieve a lot of stress.
#2: Financial Vitality
This next stepping stone gets you halfway to Tony Robbin’s financial independence. If you reach this level, you’re well on your way!
Your calculations here would include:
- Half of your monthly clothing costs
- Half of your monthly entertainment costs (dining out, movies, etc)
- Half of your current luxury costs (gym membership, massages, manicures etc)
On your spreadsheet, total up the monthly costs and times by 12. You now have your annual total.
Add this total to your financial security total, and you’ve got your Financial Vitality number.
So let’s say your monthly costs would be another $1000. Your annual total would be $12,000.
Added to the first level, your new annual number would come to $42,000, after-tax. Does your income cover this?
Better yet, if you can create a passive income to cover these two levels, you’ve done extremely well.
#3: Financial Independence
Personally, this is my “holy grail” of levels. This is when your passive income is enough so that you can walk away from your job and not worry about it. It will cover your current lifestyle or the lifestyle you wish you could have.
This calculation would include everything you spend money on in any given month.
Let’s say you would be very comfortable living on $4000 per month, or $48,000 per year. If you had passive income coming in to cover this and could walk away from your job, how would you feel?
Financially independent, right!
#4: Financial Freedom
This level of income not only covers your previous costs but now affords you those luxuries you’ve always dreamed of having.
Tony describes financial freedom as:
“Financial Freedom would mean you’re independent, you’ve got everything you have today, plus two or three significant luxuries you want in the future, and you don’t have to work to pay for them either. To get there, you need to ask yourself, ‘What annual income would I need to have the lifestyle I want and deserve?’ What do you want the money for? Is it for the freedom to travel? To own a bigger home or a second vacation home? Maybe you’ve always wanted a boat or luxury car? Or do you want to contribute more to your community or church?”
Your calculation here would include:
- The monthly cost of luxury item #1
- The monthly cost of luxury item #2
These totals will differ with each person’s desires. Add up your monthly costs and multiply by twelve. Then add it to your financial independence number.
This is your Financial Freedom number, according to Tony Robbins. Wow!! Can you imagine?
Now, remember when I said that financial freedom means different things to different people. Not everyone wants or needs these added luxuries.
There are many minimalists who believe in living within your means and frugally. That’s what satisfies them, and they don’t need anymore.
So even as Tony describes these levels with luxuries, it’s not for everyone. You may find your financial freedom at level two or three. And that’s perfectly alright! There are no set rules for this.
#5: Absolute Financial Freedom
This level is crazy to me, lol. Basically, it’s having more money than you know what to do with!
This is how Tony describes this level:
“What would it be like if you could do anything you wanted, anytime you wanted? How would it feel if you and your family never had to want for anything again? What if you were able to give freely and live completely on your own terms, not anybody else’s, all without ever having to work to pay for it? The money you make while you sleep – your investment income – would provide for your unlimited lifestyle. Maybe you would buy your parents the home of their dreams, or set up a foundation to feed the hungry or help clean up the ocean. Just picture what you could do.”
He also admits that this level is mostly for fun. But he includes it in his seminars for those people who have really big dreams and want to know what it would take to get there.
Most people will never achieve this level, but it’s always fun to dream, right?
How To Handle Setbacks
Even though you may be working hard towards your financial freedom, you’ll undoubtedly stumble along the way.
We all do! That’s what being human is all about.
Instead of becoming discouraged and wanting to quit, let these downtimes teach you. Strengthen you. Even encourage you to get back up, learn from your mistakes, and do it better next time.
There’s a short video from Tony Robbins that I find very encouraging every time I listen to it.
It’s only 1:24 minutes and he talks about our path to success never being a straight line. I think he can encourage you too…
Here Are My 7 Steps To Financial Freedom
Personally, financial freedom means being debt-free and having enough income coming in to cover our monthly expenses, spoil our grandchildren, travel and enjoy life.
If we learn to be responsible with our money, we can start to be financially free applying 7 basic steps:
#1: Budget Your Finances
Do you ever wonder at times where all your money has gone by the end of the month?
Start by writing down everything you spend money on for a month. That will show you where you may be overspending.
Consider buying just what you need, instead of what you want. It’s hard, but try to be content with what you have instead of succumbing to social pressure.
You could also attempt to cut up your credit cards, lol. And try to pay cash for everything…
Now draw up a budget and follow it!
#2: Set Up An Emergency Fund
This will buffer you in case of job loss or health issues. If money is set aside, you won’t have to use your credit cards and increase your debt.
A good amount to save is at least three months of expenses. Depending on your current health or career choice, you may need up to six months.
#3: Pay Off Your Existing Debt As Quickly As Possible
This can be difficult, but if you follow your budget and live as minimally as possible, any extra can go towards your debt.
You should start with your smallest debt first, like your credit cards. Then take on larger debt like a student or car loan.
When all that’s paid off, tackle your mortgage as best you can. Make bi-weekly payments and add extra money down each year.
#4: Invest In Your Future Self
Take a percentage of your income and invest in retirement plans or tax-free savings accounts.
Does your employer’s retirement plan match your contributions? If so, make sure to take advantage of it. A great way to double your investment.
If you have children, you may want to invest in their college funds.
#5: Live Minimally
That doesn’t mean to deprive yourself. Just make wiser choices and don’t buy what you don’t need.
Clear the clutter out of your life. You may be able to pay off some of that debt by selling off things that are just taking up space…like my treadmill, HaHa.
#6: Be Smart About Your Career Choice
Do you enjoy what you’re doing? Is there room for advancement? Will your income increase with your knowledge?
If you’re young and just starting out, think about your goals and choose wisely.
Personally, I’m entering retirement, so it’s a little late to consider a better career choice in my 20’s and 30’s. But that doesn’t mean all is lost.
#7: It’s Never Too Late…
In fact, I started working towards our financial freedom in my 50’s, and I’m so glad I did. Now I’m not worried about retirement and all the things we can accomplish later in life.
Now we can afford to travel and take our grandkids on special trips. Our monthly expenses are taken care of due to the passive income coming in each month.
Would You Like To Know How I Did It?
I started my own online affiliate marketing business!
Affiliate marketing is when you make a commission by selling a merchant’s products or services. When a visitor clicks on your links and purchases the product or service, you get paid a percentage of the sale.
You don’t have to worry about stocking merchandise, shipping, refunds, or customer service. It’s pretty sweet!
If you check out my website, you’ll find tutorials on various methods and strategies. I also write many reviews on products that are promoted online. My mission is to try to help others steer clear of the many scams out there.
My business is all about helping people like you, start your own business. I enjoyed this industry so much that I became passionate about helping others.
All you need is proper training and tools to learn the right way to succeed.
I spent months looking for information online on how to do all this. There is a lot of information out there, but you need to bounce from one site to another to get a clear picture of what’s required.
And the information often contradicts one another. Very frustrating!
My second concern was trying to find free training. I didn’t want to invest thousands of dollars upfront. What if I didn’t enjoy it? Could I get a refund?
There were legitimate platforms available, but when digging down to find out more about them, I discovered some unfortunate details.
Some were outdated, using techniques that worked years ago but no longer. Some had hidden upsells you were required to purchase once you got inside.
Some were ridiculously expensive. And there were a few outright scams.
I’ve reviewed a few of the better-known platforms if you’d like to take a look:
I, unfortunately, lost time and money looking for the right place.
I want to save you all this stress by showing you where I learned everything about affiliate marketing and where I run my business to this day.
This is an all-inclusive platform that has everything you need under one roof. No need to hop around from site to site trying to figure out what to do. It’s all there for you.
Here’s a bit of what they offer:
- Training – Step by step courses, classrooms, tutorials, and live weekly webinars.
- A domain registry – An easy way to find the perfect name for your business.
- A website builder – With over 4,000 WordPress themes to choose from.
- Website hosting – With powerful servers, security, backups, and emails, and more.
- A keyword research tool – Find low-competition keywords for the best ranking.
- A large and active LIVE community – They always have your back!
- And much more…
And the owners, who you meet and interact with whenever you wish, are so confident in their platform, that they allow you to start with a FREE starter membership. No credit cards necessary.
There’s really no other place like this online today!
If you click on the image below, you can read all about it. And when you join, I’ll be there to greet you and help you as long as you need me. See you soon!
So why not give it a try. You have nothing to lose….it’s free!….and everything to gain. There are over 1 million members who would agree!!
Do you believe these steps could lead you to financial freedom? Please let me know by leaving any comments or questions below.
P.S. Please share!