Financial Freedom in Two Simple Steps

Financial Freedom or financial independence is generally used to describe the state of having sufficient personal wealth to live a happy lifestyle, without having to work actively. Definition of 'happy lifestyle' varied in each individual. It depends how much you want. The more you want, the more wealth you need to create. Nonetheless, the formula to achieve it can be summarized in two simple steps.

(1) Create Surplus - Increase Income Reduce Expenses

As been known, create surplus is the first step towards Financial Freedom. Surplus is an amount left over when basic needs have been met. However, it is challenging especially for nowadays youngster. Reason being they are confusing between what is wants and what is needs.

Traditionally, immediate basic needs are food (including water), shelter and clothing. In modern life, transportation and communication have also categorized into the list of needs. Unintentionally, most of the time people tends to overspend on so-called 'needs' and put themselves into cash tied situation. Example:

• Dining out. Why not just enjoy home cook food?
• A bungalow. Why not just a cozy terrace or apartment? Renting is another option too.
• Branded clothes. Non-branded clothes are nice and comfortable as well.
• Luxurious car. Why not an economy one or an average one?
• Smartphone and laptop price can be varied from few hundreds to few thousands as well.

Think twice. Is all those really your needs or wants? Overspend here and there causing you have very little surplus, no surplus or even negative surplus with the convenience of credit card.

Increase income and reduce expenses must be co-exist in your financial planning. It can be done by having a proper personal budget. Overtime, you build up surplus and ready for the next step.

(2) Generate Passive Income - Create Money-Making Machines

Passive income is an income received on a regular basis, without or with little effort required to maintain it. Each tool that you used to generate passive income is your money-making machine. It can be any types of investment and/or businesses. One need to have more than one money-making machine as part of risk management to ensure smooth generation of passive income. One can declare Financial Freedom when their machines able to generate a total income that is greater than their expenses.

Most money-making machines require some sort of investment up front. This is where your surplus come into the picture. Great things almost always start small. Likewise in financial planning. Start with one money-making machine with your initial small surplus. As time goes, build it up, diversify and further build it up. You will definitely closer and closer to your goal - Financial Freedom!

Article Source: Financial Freedom in Two Simple Steps

100 Tony Robbins Quotes

Billionaire Mentality

Do you want to increase your wealth and improve your relationship with money? Are you willing to ALLOW a constant flow of prosperity into your life?

All it takes is a decision and belief. Simple, huh?!

Sure, you’ll have to let go of a great many negative beliefs that you currently hold on to for dear life. 

Billionaires trust something that most people don’t … there will always be an abundance of money and resources. A never-ending supply. They believe that all of their needs will be met. That includes money, love, knowledge, space, energy, peace, fun and more.

All billionaires may not feel all of that. But that is true prosperity. That “knowing and trust” allow you to act more freely. You make decisions based on what you want, not what is possible. Billionaires know it’s all possible.

At any point so far have you thought …

I don’t need to be a billionaire.
I can’t imagine that. A millionaire is even beyond me!
How would I get there?
That sounds overwhelming.

Prosperity means trusting that you can have the desired outcome without having to give up anything (except that nasty gremlin who has you believing those limiting thoughts!). When abundance is your primary belief, you can have it all. You won’t be taking anything away from anyone else, either. 

Recently, I went to a beautiful restaurant for dinner. The couple I was with kept making comments about the menu prices. It detracted from the beauty of the moment and anticipation of the meal. When you focus on price, you begin judging and justifying its worth. 

If you’re in business for yourself, you’ll notice the same thing happens when you decide to increase your fee or your price list. If an expensive dinner freaks you out, don’t do it. But notice what beliefs are making that decision for you. If you’re focused on paying debt and cutting down on unnecessary expenses, this decision is aligned with your strategy. But strategy will only get you so far if you have lack lurking behind the scenes.

I’ve coached billionaires and millionaires, with no debt, and some are still plagued with the fear that someday their wealth will disappear. This has them making choices in their lives that aren’t truly making them happy. They stay in careers where they work 24/7. 

This is not the way life is designed to be. You have the choice to go on the same way or uncover more of what’s limiting you. As you get smarter, the lack mentality is very subtle but has a huge impact on your life. The “Billionaire Mentality” is available to you right now!

Are You Truly Ready For Prosperity? Really? You’ll have bouts with fear, discomfort, and insecurity. You’ll control, push, worry and get spun up in your head about how to get what you want.

It takes practice, but it’s a worthy cause. And it can be quite fun!

Here are some small steps to get you started …

*Decide to focus on what you want, rather than on what you don’t have.
*Ask yourself when making decisions, “If money wasn’t an issue what would I do or how would I feel about this issue? If I knew my desire was possible what would I do next?”
*Surround yourself with people, books, audios and information that support you in this quest. This isn’t the average person’s way of thinking. Most people are hooked into struggle, limitation and “someday”.
*Start noticing who is making decisions for you. Is it your “gremlin” or is it the “billionaire” in you who trusts in your brilliance and unlimited resources?

Article - http://www.selfgrowth.com/articles/billionaire-mentality

Financial Freedom - The Single Biggest Reason People Never Get Rich

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.


Article Source  http://EzineArticles.com/8470270