The First Step For Financial Freedom
Are you confused by all the noise out there about how to create more wealth in your life?
Maybe you just want to know the very first step for financial freedom?
What is the First Step to Financial Freedom?
Before I get to the first step to financial freedom, I want to give you the over-riding philosophy that will lead you to having more money, more wealth and eventually financial freedom.
It is so simple… but nobody wants to hear it!
Spend LESS than you earn, and INVEST the rest!
This is the only way you are going to get rich and create financial freedom!
The Debt Trap
As I said before, this is a simple philosophy, but it is easier said than done!
With the constant cost of living pressures and easy access to credit, it is very easy to fall into the debt trap and not live this philosophy.
I have also fallen in to this trap myself, and found myself way over my head in consumer debt.
I have also stacked up a lot of bad debt in credit cards and personal loans after biting off more than I could chew by buying a bunch of Investment properties and falling prey to a couple of property spruikers!
But thanks to my money management system, I have been able to get myself out of this debt trap and back on the right track.
Although while building up my business, I still always have to be mindful of keeping cash flow under control.
Even most of the Governments of today are running up huge mountains of debt and not living within their means.
Just look at Greece as an example.
Even here in Australia, the Government is running up a deficit of 100 Million dollars a day!
So if you are struggling in this debt trap you are definitely not alone!
But even if you are currently in debt, you can still take the very first step for financial freedom.
The First Step For Financial Freedom
So the very first step for financial freedom is to Pay Yourself First!
Make the bills wait.
Log into your online banking, establish a high interest account and schedule to transfer 10% of your next pay check into this high interest account.
This account will become your Financial Freedom Account or FFA account, which will be used for investing only.
And the principle of what goes into this account must NEVER EVER be spent!
It is to be used for investing and setting up passive income streams only.
Then you can then let compound interest work it’s magic.
Now you might be saying that you can’t afford 10% just yet?
Well just transfer something.
The habit is the key and you can build up the amount over time.
Starting with this very first step for financial freedom will eventually make you a millionaire.
The best time to start was 20 years ago.
The second best time to start is NOW!
If you have any questions or comments feel free to leave them in the comments section below.
To your success,
John W. Newman
Dream It, Believe It, Then Achieve It!
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Hello John Great to see you are giving your readers good advice and putting them on the right track. I totally agree with you content and think that it’s a great place for almost anyone to start if they want to get ahead.
Giving attention to the ‘debt trap’ is important because it is something that many are in and need to be aware of. Having steps to follow and a plan is the right solution and I also see you have some great ebooks for people to pick up, which is really nice for people who are serious about getting ahead
Good work and some great resources here. Cheers 🙂
Thanks for your comment Peter!
Glad you liked it 🙂
Hey, John!
I have actually heard this first step towards financial freedom before, and is something I’m implementing each month. Whenever I get paid from my job, I make it my goal to spend the least amount of money as possible and invest some into PPC ads for my online business 🙂
I hear what you’re saying about the debt trap because it is hard to escape debt, especially when it’s out of control. With the way that Governments pour money down the drain, one day the whole world’s economy will collapse and I can see riots happening lol.
Thanks for your advice, and I fully intend on paying myself first 🙂
Neil
Thanks for your feedback Neil!
I am glad that you are implementing this step Neil and also pleased that you are investing in your business as well!
It is always great to hear that someone is taking control of their OWN financial destiny!
I wish you well!
Great post John. The debt trap can definitely give you a hard time indeed. I’ve fixed it so that every time I use my card, it automatically transfer 20 kr. (about 4$) to my savings account. During a month that’s usually about 5% of my overall income after taxes, but since it’s such a small amount of money every time, you almost doesn’t even notice their gone. Great way to save money 🙂
Keep up the good work!
Totally agree Tommy!
The best way to save money is to do it automatically.
You develop a habit of saving and you don’t even miss it!
Eventually this habit will lead to financial freedom and the lifestyle you desire!
Hi John,
This is some very practical and useful information that so many people need to hear. And the cool thing about it is that it’s not that difficult to understand or do. I used to preach this to my clients as a loan officer and the sooner you start saving 10% the faster it accumulates.
I went ahead and shared this post because I think there is a lot of young and older people who need to take that first step for financial freedom today.
Best to you,
Todd
Thanks for your comment Todd.
You are absolutely right, saving 10% of your income is so simple to do yet so many people just don’t do it!
I guess a lot of people are looking for a silver bullet that will give them financial freedom, but at the end of the day a few simple principles is all you need!
Thanks again 🙂
HI John, man you’re not wrong about the debt trap, I like what I read, they should be teaching this in schools
Absolutely Rino!
Financial education should definitely taught in schools, it would certainly of been more valuable to me than what trigonometry was! 😉
The life you live is influenced by the habits you develop. It’s all a matter of developing the right habits to start living a successful lifestyle. Financial freedom as you say really starts with spending less than your making. Then it goes up from there as long as you continue to improve your decisions. Investing is a great example you mentioned.
Our thoughts and habits are what control our lives for sure!
Financial success is like anything else – a learnable skill.
Once we start to learn, then we can make it a habit and success will follow.
Thanks for your comment Damien!
I am in the fitness training business and it relates to finances. You have to take the first step and make changes a little bit at a time. Lots of good info here.
Absolutely agree barry!
Step-by-step is the way to success and financial freedom!
Thanks for your comment!