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The 6 Proven Steps to Achieve Financial Freedom!

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Ready to achieve financial freedom? Nowadays, there’s a plethora of get-rich-quick schemes floating around – those ads from so-called ‘experts’ with their fail-proof oil futures system. The art of bank robbery seems almost outdated now. Ever thought about what John Dillinger would be up to in today’s world?

Hey there! In the midst of all the buzz, let’s dive into some proven ways to build real wealth and reach financial freedom. The key? Generating income from your assets to fund your dream lifestyle. This opens up a world of possibilities! Think about things like:

  • Less work, more play!
  • Kickstarting a business venture.
  • Giving back and feeling great!
  • Exploring the world while working abroad.

Absolutely! It means you get to enjoy a lovely house, a cool car, and fantastic holidays. Yet, many discover that the true gem of financial freedom lies in dedicating your time to what truly excites and inspires you.

So here are six steps that you need to follow to reach true financial freedom:

Step 1 – Choose to break free financially!

Imagine this – you can totally reach financial independence, even if it doesn’t seem that way yet. Picture your dream life: the house, the car, the holidays. Will you care for your folks? Pursue more education? Maybe even own a sports team? Right now, these goals may seem far off, so don’t worry about the how just yet.

Brian Moran shares a fantastic tip in his book “The 12 Week Year” to transform your mindset from Impossible to Possible – switch from asking How? to ‘What if?’. If you knew how, you’d already be doing it! So, let’s ask ‘What if?’ – it’ll get your brain buzzing!

Step 2: Let’s check in on where you’re at right now!

Time to have some fun! Jot down all your cool stuff – your home, car, savings, super, shares, and more. Now, list those pesky debts like your mortgage, car loan, personal loan, and credit cards. The gap between these is your net worth – let’s find out!

Once you have done this, work out your current income & expenses using a cashflow tool. Your first target is to build your assets to an amount that will pay for your current expenses. Then you can aim for a level that will fund your ideal life. For a rough idea on what you will need for this, add up all of your expenses and multiply the total by 20. This number might be mind-blowing but keep asking yourself ‘What if?’ for now.

Step 3 – Smash that personal debt!

Let’s dive into credit cards, personal loans, and car loans. Mortgages can wait for now. Personal debt is a real headache and can really put a damper on your finances. Try your best to clear this off, seek support if needed. Aim to put aside 10-20% of your income with each pay to chip away at your debts, then enjoy the rest.

Step 4 – Create a safety cushion

Once you’ve cleared your personal debts (or if you’re debt-free), it’s time to start building your financial foundation. Save a bit from each pay to create a cash safety net. Aim for 10-20% of your take-home pay, but start with what you can manage. You might need to trim your expenses. The goal is to grow your cash cushion to cover 3-6 months of all your bills. This fund isn’t for splurges or investments – it’s your safety net for unexpected twists.

Step 5 – Level up your game and dive into investing like a pro!

Now for the exciting bit! Keep expanding your income potential – whether it’s your job, your own business, or a side gig. Invest in yourself and your venture to fuel growth. Use this additional income to acquire more assets. These could be:

  • Property
  • Shares
  • Managed Funds
  • Super
  • Businesses

Let’s unleash the power of compounding – these assets will generate more income and growth for you to reinvest and expand further. Before you know it, the snowball will be racing ahead!

Step 6 – Look after yourself, mate!

As you’re growing your wealth, don’t forget to safeguard it and yourself. Seek guidance on the best investment structure. Ensure you’re protected in case something major occurs. The key things to have covered are:

  • Your home
  • Your health and income
  • Your family
  • Your contents and vehicles

This way, you won’t be starting from scratch if you hit a big bump in the road. Your plan will keep rolling, even if life throws a curveball like losing your job, falling ill, or facing a fire. It doesn’t have to break the bank, but your safety net should fit you like a glove.

These steps might be simple, but hey, they’re not a walk in the park. If they were, everyone would be rolling in cash! But guess what? They do the trick, and the payoff is totally worth it!