Tuesday, 17 July 2012

Finding Your Path To Financial Freedom

There's many ways in this world to become financially free. Hopefully this article gives you some idea on how to do so.

Before we start...

We have to first define what is Financial Freedom. Different people have a different definition on financial freedom.

Some people define Financial Freedom, as the number of months difference of your age and your life expectancy, multiply by the number of months of your spending based on your expected lifestyle.

Simply put, FF= 12(a - b) x $c

a=Life Expectancy
c=Your spending per month based on the lifestyle you want

You can work at a job and start saving money every month for your retirement fund, and you can have financial freedom when you retire.

To me? That's too little for me. Financial Freedom is when I don't have to worry about money and all, and I can have the freedom to do anything without considering the price tag.

So how do I achieve that? My financial freedom is made from passive income.

How to generate passive income?

Based on Robert Kiyosaki's Cashflow Quadrant, the way to generate passive income is being a Business owner or a Investor.

Actually, there is more than those 2 ways. You can make passive income through royalties made from music or other intellectual properties. Alternatively, you can also make passive income from renting. From renting cars, to houses, to tools and equipments.

But I'm sure you did not stumbled here because you wanna learn how to write music. Most methods above requires a big capital to actually generate a good source of passive income for our lifestyle.

To be Business owner, you can start your own business and systemise it to make passive income for yourself, or alternatively you could franchise a business.

To be an Investor, there's so many things you can do. You can trade or invest in options, stocks, Forex, bonds etc. Or you could invest into gold, silver, properties, businesses etc. There's many options out there. And there are trading and investment gurus out there who can offer you 10% returns every single month. But, take a minute to think. If you had $100,000 dollars, you could potentially be making $10,000 dollars. Is that sufficient for your lifestyle? But what if you only had $1000? You'll only make $100 dollars every month. That's not enough for you right?

When I was 18, I decided that I was going to start a recording studio. I started working it out from my home. Spent close to $15000 dollars, but I knew it is going to be really hard for me to retire with this business. I need to build a system that can allow me to make passive income. To do that, I need to train people up who can start doing production for me, do the marketing for me, hire more qualified and experienced people to build the business. There was just too much things to do, and too little time to do it. I gave it up as a serious business.

And then came network marketing

That was when my sister, introduced network marketing to me. Robert Kiyosaki names it personal franchising. He calls it the perfect business. Why is this so?

Network marketing costs you only a couple of hundred bucks to start, while investing, trading and most businesses require a big capital.

It is a part-time business. Making a transition from having a job to a business owner a smoother one. There is no need for you to quit your job to do this business.

To be a businessman, you need to have the right mindset. Through working with a network marketing company, they train you up in terms of mindset and skills on business. When I was working with my network marketing company, I was attending courses that the company organises and they were sending down their top income earners and trainers down to train us. Before, I had no motivation, low confidence. Today, I'm a self-motivated and confident individual helping others to do the same. Working with a network marketing company helps you to grow as a person.

When I joined my network marketing business, I'm already franchising this business from the company. Think of this, how much does it take to franchise Mcdonalds? Right now, I'm franchising a business for only a couple of hundred bucks. The system of the business is already there, there is no need for me to build it from scratch.

Starting out, I was working as a self-employed. As I worked at my business, until a point where the business grows without me being there, I've grown it into a full-fletched systemized business, and I'm getting passive income every single month that is more than enough for most people to have a comfortable life.

This is why I highly recommend network marketing.

But don't just stop there! Take some of that money and start creating more sources of income and make even more money!

Let me know what you think and leave your comments in the comment box below.

No comments:

Post a Comment