On May 11th 2007 I suffered a severe accident that almost killed me. My near-death experience made me realize that time is not only money; it's life. So, I decided I was going to learn how to take care of my most precious asset: Time.
I want to share some ideas that will help you understand, what is financial freedom and how to achieve it? I also want to reveal the single biggest reason why people never get rich.
By the time you finish reading this article, I hope, you'll discover some things about yourself, and how to change the way in which you relate with money.
What is financial freedom?
Wealth is a mindset that allows you to have a healthy relationship with money. And financial freedom is a by product of that mindset.
Most people think they need a high income to achieve financial freedom, but the truth is they don't. There are a lot of guys who earn high salaries and are not financially independent.
Financial freedom does not depend on how much money you earn, but on how you spend that money. To put it in simple terms, if you can sustain the same lifestyle level without having to work you are financially free.
Getting the right mindset...
Most guys need to spend money to feel rich, while wealthy people need to have money to be rich. Can you notice the difference in the mindset?
Poor guys throw money away, they live from paycheck to paycheck and they struggle to make ends meet, because they buy things they don't need, and they burn every single penny of their salary trying to sustain a lifestyle they can't afford.
Then they assume that if they could increase their income all their problems would go away. The problem is that if they manage to increase their earnings they will also increase their expenses. So, no matter how much money they make they will never make ends meet.
All this nonsense results from following the wrong role models. Poor guys try to replicate the spending habits of the characters they watch in movies or magazines. To feel successful they need the same smartphone, the same watch, or the same car as the hero in the movie. Of course, when the trends change they throw it all away and start over again.
You need to realize that the movie, TV, and magazine industries earn money by making you spend money. The more influence they have over your spending habits the more they can charge to the companies that advertise with them
Instead, you should follow real life wealthy people and try to learn their spending habits.
For example, even though Warren Buffet is a billionaire he lives in the same house he bought for $31,500 dollars in 1958. Instead of buying a bigger house, and paying the increased maintenance costs that come with it, he saves the money and invest it. His pleasure comes from making money, not from spending it.
I don't want you to get me wrong; you don't need to become a cheap man to enjoy financial freedom. You just need to find balance and learn to spend wisely. Yes, you can buy the best smartphone, but not every year. Throw it away when it is not useful for you anymore, not when the trends change.
Remember, money is time and if you use it wisely it will buy you freedom. Once you learn to enjoy your freedom you won't need to burn your money buying stuff you don't really need.
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