how to achieve financial freedom

Wealth Doesn’t Happen By Accident….

Everyone wants to know how to achieve financial freedom. Warren Buffet says that you should make yourself an expense. Robert Kiyosaki recommends paying yourself first.  Think about how that compares to what the average middle class person lives their life.  Paying the government, the bank, and the schools and having almost nothing left over to prepare for their future.  That’s why Uncle Sam penalizes us when we take an early distribution from our retirement account.  We as human beings are naturally reactive, meaning we respond to our circumstances.  However the rich tend to be heavily proactive, preparing beforehand in order to set the odds in their favor down the road.how to achieve financial freedom

Are you the Ant or the Grasshopper?

One of the classic stories many of us are told growing up is the story of the aunt and the grasshopper.  Each day the grasshopper would relax and enjoy the warm sunny weather.  And he couldn’t understand why the ant was working and preparing each day.  Not until the winter came, and ended the harvest season.  It’s only then that the grasshopper could see the flaws of his of behavior and had to come begging to the ant.

 

The paycheck to paycheck to lifestyle often goes hand in hand with making short sited decisions.  Spending money for a short-term comfort at the expense of the future is the reason many people find themselves ill prepared for emergencies and retirement. And it’s also why they tend to have almost nothing to show for their many years of working.

 

But if you live like the ant, you realized that a portion of today’s earnings need to be stored or invested for the future.  Savings and assets are what allow you to keep building your streams of passive income, and eventually to attain financial freedom.  But that never happens if you don’t make yourself a bill just like you do your car, your rent, and your phone.  If that means one less coffee from Starbucks so be it.  If that means one less night out at the bar, then do it.  Because nobody is going to bail you out in 10 or 20 years  when you don’t even have the resources to sustain yourself. It is one of the steps on how to achieve financial freedom.

Don’t believe me?  Take a look at all the news surrounding Social Security.  When benefits were first made available, they had 50 workers paying in for every recipient.  Now there’s 2 workers paying in.  And they’re borrowing against it to fund other programs that can’t keep up.

 

Chance favors the prepared.  And necessity is the mother of all invention.  Is today the day that you make the commitment to take control of your own financial future?

 

If you’re feeling overwhelmed, maybe you should see why investing for the future may be a lot easier than you think.

 

About The Author

herbertkoehler

I am a college drop out who found my passion as an investor. I love the many facets of finance, investing, and business. But even more than that, I love sharing what I learn with others.

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