Do you have an idea about the real meaning of wealth?
Your wealth is not how much money you have but how much you are able to generate at the moment. If you have become a millionaire by winning the lottery, it is not wealth, only money.
Imagine what would be left with you after all your money has been taken away from you. That’s what is called “wealth”. People who are truly wealthy don’t become poor even after losing all their money. Wealth is about creation and not possession!
Surprised?
It depends on your creativity and intention towards the concept of money. if you think about it, money is not a thing in itself but a representation of something else. A person may be capable of generating a million dollars, yet possess very little actual wealth.
You have the POWER to create wealth but you may or may not be exercising it. Now, it is time to stand up and take action!
Life is not still but always in motion. In order to have a sustainable income, money must keep flowing in and out of your life. The trick is to balance your spending and earning to ensure that you do not become burdened with debt. The core diagnosis of any financial system is cash flow. To create wealth means to make sure that your income increases expenses.
If you know how to create wealth, there will be no need to plan for your retirement. The purpose of life is to keep creating new things, trying new ideas and redesigning your purpose in life. Do not consider retirement as a point of stopping all activity. Ideally, freedom and retirement should go hand in hand. If you do something that you truly desire and find enjoyable, you will not have to work for someone else or retire.
You are completely free to do what you want to!
Friday, February 22, 2008
Friday, February 15, 2008
Borrowing Credit After Achieving Financial Freedom – Good or Bad?
Congratulations!
Now that you have achieved financial freedom, it’s time to maintain it.
Once you have paid off everything you owed in debt, it is very IMPORTANT to stay out of debt in future as well. To sustain your financial freedom is something different from obtaining it. Don’t make the mistake of thinking that it will not require any more efforts from your side.
A lot of advice and tips will be available for debt management and financial success but you may not be able to find the right tips for your particular needs. There are endless websites that cater to the different needs of people for gathering information and managing their financial position.
The sad part is that a lot of them give advice for managing bad credit in the WRONG way!
Some websites will even tell you to borrow money in order to enhance your financial freedom and wealth building. If you think that makes sense, it doesn’t.
Obviously, you will find it easier to borrow money if you have good credit position. However, you need to be 100% sure about the possibility of paying-off the amount you borrow in the future. It should be relatively easy to get debt free and you must actually be able to afford to spend that money.
Not many people look at credit or loans from that point of view…most of them just get allured by the short term prospects of having free flow of funds. That’s not what financial freedom stands for.
The point of getting out of debt is not to get back in again. If you do not understand this principle, your financial freedom will surely be short-lived, not the long-term independence that you dream of.
Now that you have achieved financial freedom, it’s time to maintain it.
Once you have paid off everything you owed in debt, it is very IMPORTANT to stay out of debt in future as well. To sustain your financial freedom is something different from obtaining it. Don’t make the mistake of thinking that it will not require any more efforts from your side.
A lot of advice and tips will be available for debt management and financial success but you may not be able to find the right tips for your particular needs. There are endless websites that cater to the different needs of people for gathering information and managing their financial position.
The sad part is that a lot of them give advice for managing bad credit in the WRONG way!
Some websites will even tell you to borrow money in order to enhance your financial freedom and wealth building. If you think that makes sense, it doesn’t.
Obviously, you will find it easier to borrow money if you have good credit position. However, you need to be 100% sure about the possibility of paying-off the amount you borrow in the future. It should be relatively easy to get debt free and you must actually be able to afford to spend that money.
Not many people look at credit or loans from that point of view…most of them just get allured by the short term prospects of having free flow of funds. That’s not what financial freedom stands for.
The point of getting out of debt is not to get back in again. If you do not understand this principle, your financial freedom will surely be short-lived, not the long-term independence that you dream of.
Friday, February 8, 2008
Financial Freedom Through Financial Training
How do you know whether you have achieved financial freedom or not?
It’s simple.
When you have ample passive income to support your lifestyle and work by choice, not compulsion for a paycheck.
Surprised?
For many, the words ‘financial freedom’ conjures up the image of a luxurious, rich lifestyle without any worry about overspending or incurring debt. While most people long for such a life, it is not the true meaning of financial freedom.
Even an ordinary person can enjoy financial freedom if they go about it in the right way. Whoever said that financial freedom is all about finding shortcuts to getting rich, is far from knowing the truth about a financially independent life.
Don’t assume that the journey will be comfortable. It can be very tough and filled with many obstacles. Those who really desire freedom have to struggle for it, keep getting up and moving towards the goal each time they fall and remain consistent in their efforts.
FIRSTLY you need to change some beliefs that are familiar to you and seem logical and objective. In reality, there is no such thing. Beliefs have the ability to change and your opinion should not be rigid either. If you are OPEN to new ideas and have a positive attitude, it will go a long way in helping you achieve financial freedom.
How about planning for financial freedom and wealth creation rather than planning for retirement?
Most people don’t know the difference between the two and that’s what keeps them away from the ultimate goal. I’ll suggest you to make a list of all assets and liabilities to calculate your net worth.
Net worth = assets – liabilities
Next, you should determine the cash flow by itemizing the income and expenses.
Cash flow = income – expenses
Both net worth and cash flow will form the outline of your financial freedom plan. The rest depends on your willingness to adopt new methods, ideas and strategies for achieving financial freedom.
Focus on becoming debt-free and earning money from legitimate opportunities. Running after “get-rich schemes” will be a HUGE MISTAKE. Plan your future wisely and work towards the financial freedom you deserve.
It’s simple.
When you have ample passive income to support your lifestyle and work by choice, not compulsion for a paycheck.
Surprised?
For many, the words ‘financial freedom’ conjures up the image of a luxurious, rich lifestyle without any worry about overspending or incurring debt. While most people long for such a life, it is not the true meaning of financial freedom.
Even an ordinary person can enjoy financial freedom if they go about it in the right way. Whoever said that financial freedom is all about finding shortcuts to getting rich, is far from knowing the truth about a financially independent life.
Don’t assume that the journey will be comfortable. It can be very tough and filled with many obstacles. Those who really desire freedom have to struggle for it, keep getting up and moving towards the goal each time they fall and remain consistent in their efforts.
FIRSTLY you need to change some beliefs that are familiar to you and seem logical and objective. In reality, there is no such thing. Beliefs have the ability to change and your opinion should not be rigid either. If you are OPEN to new ideas and have a positive attitude, it will go a long way in helping you achieve financial freedom.
How about planning for financial freedom and wealth creation rather than planning for retirement?
Most people don’t know the difference between the two and that’s what keeps them away from the ultimate goal. I’ll suggest you to make a list of all assets and liabilities to calculate your net worth.
Net worth = assets – liabilities
Next, you should determine the cash flow by itemizing the income and expenses.
Cash flow = income – expenses
Both net worth and cash flow will form the outline of your financial freedom plan. The rest depends on your willingness to adopt new methods, ideas and strategies for achieving financial freedom.
Focus on becoming debt-free and earning money from legitimate opportunities. Running after “get-rich schemes” will be a HUGE MISTAKE. Plan your future wisely and work towards the financial freedom you deserve.
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