THE DEFINITION OF FINANCIAL FREEDOM
The definition of true financial freedom has been stated as… When you are debt free and have replaced your working income with ongoing, consistent passive or residual income, which then allows you to become time free!
I also have another definition and that is… Having the ability to do what you want, with whoever you want, whenever you want, WITHOUT having to worry about money!
What is Financial Freedom? from John Newman on Vimeo.
3 STAGES TO FINANCIAL FREEDOM
There are 3 stages of income before reaching financial freedom.
- Working income – essentially trading your time for money (J.O.B – Just over broke!)
- Residual income – less time for money
- Passive Income – No time for money
This would have to be the toughest way to achieve financial freedom, but for most people this is a means to an end and I certainly don’t say to throw your job in. The best thing to do if you are working is to make sure you are managing your money properly (preferably using my Money Management system) and in your spare time working on creating additional passive and residual income streams until you can eventually replace your working income.
Residual income is when you put in a whole lot less work, but the money still keeps coming in.
This can include share trading and setting up online businesses. Especially with an online business, you may work hard initially, but it can be systemized so that you do the work once, but the money keeps rolling in, leading to passive income!
Passive income is basically making money while you sleep!
Once you have done the initial hard yards, the money still keeps coming in with you doing very little or nothing at all, even while you are relaxing on a tropical island sipping cocktails!!
Some examples include dividends from shares or stocks and rental income from investment properties.
BUT WHAT IS THE BEST WAY TO FINANCIAL FREEDOM
While I do recommend putting money into assets such as investment properties and also stocks, this does take time.
So my best advice if you want to achieve true financial freedom in the shortest timeframe possible, is to invest your efforts into creating an online business, this is what I have done and will continue to do.
Don’t get me wrong, starting and running an online business takes a lot of work, especially initially, but I believe that it is the best way to achieve residual and passive income and to free yourself from the shackles of a J.O.B.
SO WHERE DO I GO?
To achieve financial freedom you have to be willing to put in the work, have the right mindset, the right strategies and the right guidance.
That is why I have created this website… as I continue on My Road To Financial Freedom, I want to help as many people as I can to achieve it too!
What has helped me enormously in creating my own online business has been the community at Wealthy Affiliate and if you want the absolute best training that I have come across, I encourage you to give them a try, and you can start for FREE!
Read my full Wealthy Affiliate review here.
So why not join me on My Road To Financial Freedom and discover what it is like to experience true time and financial freedom!
If you have any questions or comments feel free to leave them below, I will be happy to help.
Again, I am John Newman and always remember…Dream It… Believe It… Then Achieve It!!!