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Road Map to Financial Freedom| 7 Steps to Financial Freedom Part 1

Financial Freedom Is Your Right

Financial Freedom Is Your Right

In this two-part post, “Road Map to Financial Freedom”, I will outline the first 3 steps of 7 Steps to Financial Freedom to help you as you build wealth for a secure retirement.

July 4th is “Independence Day” for U.S. citizens.  it is the day where people proudly display their flags, go to picnics and barbeques with friends and family and watch dazzling fireworks displays in all the small towns and big cities across America. Independence Day reminds us of the freedom our founding fathers fought for in the Revolutionary War of 1776.

Although more than 300 million people live in a country that  stands for freedom from political and religious tyranny, many are not experiencing freedom in their financial state.Many are enslaved by debt and held captive to their 9-5 job that keeps them from earning the kind of income that could help them build the financial security that comes from having more wealth.

Financial freedom is your right. But like any “right”, financial freedom is not an automatic right–it is a right that you must choose and fight for.

Let me assure you, you will not find the same trivialized and re-worked steps to financial independence that you can find in a hundred other websites.  Hopefully you know what I mean. Many traditional web posts on the subject of financial freedom admonish you to…

  • cut your expense,
  • pay yourself first,
  • invest wisely,
  • set aside 15% for retirement,
  • get out of debt,
  • pay the lowest legal amount in taxes,
  • insure yourself and protect your assets.

Unless you are just starting out you probably know those things.

So let me say, yes…be prudent and do all of the things traditional financial experts recommend to build your wealth; and you will build financial freedom slowly over a period of twenty to thirty years. In fact in my next post on the topic of financial freedom, I will show you how to increase your retirement portfolio by 119%; but in this post, I want to focus on 7 Steps to Financial Freedom from an entirely different perspective starting with the first three steps.

The First 3 Steps to Financial Freedom in this post:

-1- Recognize the Potential in Yourself to Create Wealth

Every person on earth has been given the “power to create wealth.” My millionaire mentor, Bob Proctor says, “You were born rich.” Your power to create wealth is found in the gifts and talents you were born with. The surest way to wealth is to follow your gifts, strengths and passion to start a business.

Having a significant income that they control is what separates self-made millionaires from non-millionaires. 74% of all self-made millionaires acquired their wealth with business ownership.

The best way to start a business these days is to start online. With online business models, you don’t need a lot of start-up capital, you don’t need to put employees on your payroll and you don’t need to lease a building. In fact, starting your own business is as easy as 1…2…3:

1. Build a micro-niche website

2. Monetize your website with products and services your visitors want

3. Drive traffic to your website

Click on each of the topics above to find more specific information about building a successful online business.

-2- Choose to Become Self-Reliant

Get ready for a spectacular life!

Learn How to Rely on Yourself

Two points I want to make with this step to financial freedom are 1) it is far better to depend on yourself for income than it is to rely on an employer or anyone else for that matter; and 2) it is far better to rely on yourself for investment advice than it is a commission sales person.

I have been around the internet enough to know that there are thousands of internet marketing schemes available.  Some are promoted by unscrupulous sharks with a promise to quick riches with a few simple clicks of a button.  Believe me, if it were than easy, everyone would be very rich.

Do not trust something as important as your own personal wealth to any internet marketing company.  The best way to become wealthy is to learn how to create multiple streams of income and then learn how to invest in a well-diversified portfolio of growth stocks, income producing assets, bonds and cash equivalents.

If you decide to hire a professional to help you develop your portfolio, be sure to check his or her credentials and ask for at least three references.  Then, do not rely solely on your broker when it comes to investment advice. Many commissioned brokers are sales people; they are often too busy selling to truly monitor your investment portfolio.

Do your homework and learn as much as you can about investments.  Knowledge is power.  Read personal finance blogs.  Start your research with the following unbiased sites:

-3- Create a Practical Plan

Everyone who is serious about financial freedom should have a plan to get there. But if you are like the majority of Americans you probably don’t have a plan. Without a plan you could find yourself living from paycheck to paycheck with little to no savings and a pile of debt.

Start your financial plan by listing your goals. Goals are like the compass for your brain–they help to keep you focused and give you a clear path to achieving the results you want in your life.

To be effective, your goals must be personal, e.g. they have to be meaningful to you. Be sure to write your goals down on paper and review them at least monthly. Set goals for:

  • Setting aside $1,000 for an emergency fund
  • Saving 3 months of living expense
  • Reducing or eliminating credit card debt in a certain time period
  • Saving for a newer car
  • Setting aside money for retirement
  • Saving for a family vacation

Next you need to establish a budget.  I know many people hate the dreaded “B” word but to see your goals to fulfillment you have to have a practical system of tracking your income and expense. It doesn’t really matter how you track your spending just so you keep track of it and don’t leave it to chance.

Here is a list of programs to get you started:

In the next part of this post on 7 Steps to Financial Freedom, I will cover steps 4-7:

-4- Eliminate Waste

-5- Learn to Save and Invest Wisely

-6- Eliminate Debt, and

-7- Increase Your Income

Until then, thanks for reading this post.  Please share your comments so that other readers can learn from your wisdom.

 

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