How To Achieve Financial Freedom

Many people have worked very hard throughout their lives yet they find themselves never able to achieve their goals of achieving financial freedom. Many people that I know even sacrifice their personal or family time in order to make up that extra bit of success or money, yet they are still not successful in meeting the goal. Why? The answer is perhaps they have worked too hard! What? Isn't that what our parents and teachers have always taught us from day one, that is, to work hard in order to earn a living and to get rich??!! This is where the problem lies...the keyword "work hard" and how our thinking is often being groomed as such.

First of all, let's properly define what "financial freedom" really means. Since there could be many definitions out there, i decide to take it from the worldwide commonly accepted media, the Wikipedia. Here is how Wikipedia defines it: "Financial Freedom describes a well-planned lifestyle where one no longer is required to work for income to cover their expenses". It adds on to say that being in a state of financial freedom does not mean that a person is necessary out of debt! What it means it that one does not have to work for money anymore simply because money is working for one and is consistently more than enough to cover expenses including debt. Ultimately, one can live the desired lifestyle without having to worry about money!

Some may say, " how to make money without working? It's not possible!" Indeed, it involves a major change of mindset. One needs to first start doing away with the bad word called "work" and replace it with "system". E.g., franchising, Network Marketing....these are all Systems. System is also often associated with Automation. The whole idea is to free yourself up doing the more value-added stuff rather than constantly requiring yourself to personally get involved in all major or minor matters.

With "Systems", you need to then understand the word "Leverage". A person by virtue of his or her own capacity is limited in resources, therefore it is important that one knows how to LEVERAGE! e.g., Network Marketing is one of the best form of leveraging due to the fact that you could effectively leverage all your down lines to support your business (and for himself of course) and make money for you too whenever they make money. Get the idea?

Once you have a SYSTEM in place, the next thing you notice is a consistent generation of cash flow. Although the amount of cash flow can often be small initially, the amount of cash flow increases over time due to compounding effect! Imagine you have 5 down lines in your network marketing organization and the same 5 person get another 5 person each under them the following month. This works out to be 25 persons in total! Get it? This systematically generated cash flow is called Passive Income (or Residual Income). Essentially, when one consistently earns more passive income than his or her expenses, he or she is on the right track to achieving financial freedom!

Investments such as stocks and properties are also a very good source of passive income. eg., dividends from stocks, rental income from property. I know some wealthy people out there are earning so much dividend income every year to the extend that they can effectively retire without having to worry about money.