Sometimes it’s amusing to see how vague and confusing financial advice is. The simple answer is, set up a money machine. You don’t need long questionnaires and expensive consultations to know what you already know deep down:
You want your money to provide a stress free life to do what you want.
It’s called freedom. It’s what everybody wants. And when do you want freedom? It’s not in your 60’s and 70’s at that predefined retirement age being old and tired. You want freedom as soon as possible, aka right now.
How do you get this financial freedom and the personal freedom that comes with it? We’ve got a simple 3-step checklist. But first, we have to crush this disbelieving devil on your shoulder, whispering, “What is this blasphemy? Retiring at 30? 40? 50? You’re supposed to work until you’re dead!” You have to commit fully to accomplish anything in life, and there’s nothing that’s going to affect your life more than obtaining your personal freedom. Isn’t that why you commit so many years to schooling and commit years of savings for college tuition? Even going into debt?
That’s what this series is about. This is what MarketHeist is about. Where college left off at getting you to freedom. Many more people than you’d think have that personal freedom to retire early, and I don’t mean just celebrities or those coming from money. Sure, some is luck, but for most it isn’t. These people simply realized a salary is not enough. You get sick, have an emergency, you stop working. The cash flow stops immediately. And by cash flow I mean your livelihood. That’s not freedom.
But what other ways are there to pay for your life? Nearly unlimited ways, actually. Wrap your mind around that. That’s what financially free people understand and have committed to.
Stop envying these people and get that life for yourself. There’s only 3 simple goals to focus on. Yes, just 3. Simple is good. Simple is smart. Simple, anyone can do (and hard to screw it up!). If you want more confusing stuff, there’s tons on the internet.
3 Things to Do With My Money to Get Freedom
This stuff is so simple it’s been around for thousands of years. These same ideas were used by the Babylonians to become the richest city in ancient times. Whether it works for you or not is if you stick to it or get distracted.
Spend less than you earn. Invest the rest. Details of how to invest in Day 2.
First things come first. Spending more than you earn? Then you’re going into debt. You’re going the opposite direction of freedom. Get your life in order, change your habits just a tiny bit, and give yourself a chance. We’ve all saved up for something we want now. A shoe, a phone, an expensive dinner. So we can surely save up and give ourselves ourselves a future.
Reinvest what you make for compounding growth. Compounding is the gift that keeps on giving, but everyone kills that golden goose! How many of you have made a lot of money on an investment and spent it? Don’t you want your money to make you money? Your money can and should be working 24/7/365 while you’re doing other things. Your time is your most valuable possession, but most people trade their time, and thus their life, for money instead of money for money.
Set up a money machine to pay for your life. When the combined payouts of all your investments gives you the annual income to live the life you want without working. That’s when you’ve won. That’s when you don’t have to work. You can, but for your own enjoyment. We’re not talking about investments as just the usual retirement package of stocks, bonds, and mutual funds. Sure, the foundation are investments mentioned in step 2 that provides you with compounding growth. But how about your own business or own practice that someone else runs? Or your own automated web store that brings in consistent income? All of these can give you freedom.
How do you know how much investments you need rolling in your compounding money machine? The critical mass of investments you need depends on what kind of a lifestyle you want your investments to pay for. It's the lifestyle you're building this for. Whether you’re investing in stocks, bonds, real estate, gold, other's business, or your own business, the real goal isn’t investing for returns. That illusion will keep you from the end game of happiness and fulfillment
What makes you wealthy? Income. Not assets. Assets you can buy. Assets’ values change all the time. Lots of assets are not liquid. Meaning you can’t immediately use it to pay for something. You need income. Some people have a lot of assets on paper, but if something happens, they’ll still need to borrow from someone with money on hand. Values of assets can change in an instant.
What to do with your money? Set up a money machine. Build your critical mass of investments by
spending less than you earn
investing the difference
getting compounded growth
reinvesting for even more compounded growth
Eventually you’ll get an amount of money that’s enough that, without working a job, the interest on that money alone will give you the income so you never have to work again. That’s a money machine.
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