The cost of living in the western world continues to increase, jobs are outsourced to other lower wage countries and skills needed only a few years ago are no longer current. Countries, such as Iceland, Greece, and Portugal are on the verge of bankruptcy and the U. Even pensions and retirement plans are in danger. Increasingly, these long-term securities are financed by borrowing and around the world it is more challenging and lesslikely to receive them. Perhaps it's time to finally recognize that "job security" is simply a myth. I've been living with this kind of mindset for too long.
Though I felt comfortable with most of my previous employers, each had the power to cut off my income using just two words and in doing so turn my world upside down. I was pretty much gambling on my luck with no financial strategy in mind and inadequate reserves.
Your financial situation might be even more sensitive than mine few years ago. If you have a family to support, a big mortgage, or other high ongoing recurring expenses, and you're dependent only on one stream of income called "a job", it's imperative that you start thinking of an additional income source and preferably passive.
Don't wait for the next financial crisis to hit. I'm sure you'll agree that it's much nicer to get paid while you're eating and sleeping than trading your time for money.
The biggest limit with earned income e. On the other hand, when you own a business or get paid based on results, there is no such limit. A website, for example, can serve unlimited clients and generate unlimited revenue. When I began my journey I considered all of the cash-flow options. I went to real estate seminars, read books about commodity and stock exchange trading, but I finally chose to focus my efforts on the online world.
An online business requires less investment of money or even no investment in some cases, such as owning a blog , and perhaps more importantly, the Internet by its very nature, magnifies efforts by allowing you to reach more people with the same amount of effort. My main focus was on contracting programmers to build sites that rarely need an update.
For example, I designed an online dictionary no data updates needed that derives most of its income from contextual advertising solution offered by Google. Their code knows how to match up between advertisers and site's content so there is no need spending time searching for ones. Google even deposits the revenue directly to your bank account, making the whole process completely automated. There are numerous ways to generate passive income. Examples include real estate rental, affiliate marketing commissions, original art royalties such as book, music or photography, interest from investments, dividends from owning shares in companies, and as mentioned above, on-line advertising revenue.
Whatever model you elect to adopt, try to make it as passive as you can. Spend the energy and build something that frees you from the shackles of our modern rat-race society into a world of exciting possibilities. A world where you decide what to do in each and every moment. You can always choose to keep your job and work in your current role, however the big difference is that you'll work because you love what you do and not because you have to or need to work.
Here are some common beliefs around money: wealthy people are greedy; money is the root of all evil; money is not important; starting a business is risky; making money is hard;. If you hold any of these beliefs, you're setting yourself to a tough financial journey. For example, if you believe that rich people are greedy and you despise greedy people, how can you become something you feel contempt for? You'll always sabotage your success in order stay consistent with how you want to see yourself.
When it comes to money, we're all conditioned from a very young age by our environment. We model our parents' beliefs, we conform to the norms of a society, we learn how to think and act by the media. We act based on past programming. We do all of that and then justify our behavior.
It's only when I examined some of my beliefs that I could see how my own thoughts were holding me back from creating wealth and abundance. Like many others, including my parents, I believed in retirement at the age of Nowadays, I don't believe in retirement at all. Why would I like to retire from something I love? This only pushes me further to only doing what I love to do. Before you commit to creating financial freedom, explore your beliefs around money. Identify which scripts you run and which beliefs you may be holding subconsciously.
Once you know what holds you back, create new empowering beliefs and expand them step-by-step. Taking baby steps in such a way allows you to push the boundaries of your beliefs around money little by little, until you've reached your ultimate goal. Most of us play the game of life in a very safe manner and steer our life toward security.
The main concern is survival and our dominant life strategy is not to lose. Living based on security is living based in fear, which is probably the most powerful hindrance for our financial growth. I was no different. Fueled with the fear of failure, I became satiated by a steady paycheck. The truth is that failure creates life experience, and a necessary component for business success.
The more life experiences you have, the more skills you will acquire and the wiser you will become. For years I was fed by society that starting a business is a risky move. The truth is that relying on one source of income is riskier and that starting your own business doesn't have to be risky at all. Your first business doesn't have to be the "next big thing". Ignore the glamour and divert your attention to simpler things with little or no investment, such as an informative website that can earn you passive income now.
If you have any fears regarding the world economy or the state of your current job, and you don't take any action, you leave yourself stuck in the same place. Instead, take full responsibility and see that your financial situation is a result of actions or lack of actions you have made in the past. The longer you wait before making the leap, the more difficult it can become. You might have a greater family obligation, slightly less youthful energy, and a big mortgage loan on your shoulders. Don't forget to study the tax ramifications of any investment transaction you make.
Always know where you are financially. Financial planning isn't about making one set of financial decisions and assuming you're set. Lives and situations change and your financial planning must be flexible enough to withstand both positive and negative changes without derailing your hopes for financial independence. If your forte is not investing, financial planning or tax matters, by all means bring in qualified experts to help. But financially independent people generally have their money issues at their fingertips not only for their own use, but for estate purposes as well. Help us tell more of the stories that matter from voices that too often remain unheard.
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It feels liberating to have insults and insinuations roll off your back. Once you know what holds you back, create new empowering beliefs and expand them step-by-step. But working like crazy, and commuting long hours just to pay a ton in taxes… well, that is just crazy. Download our quick financial health checklist and see where you stand! You have the choice to do what you want. However, for a financially free person, they have a sufficient emergency fund that sits outside their regular checking account, to help them weather the large, unexpected expenses. Love it!
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The passive income Rental income from second home, dividends from your stocks and mutual funds, interest from your fixed deposits and bonds, regular returns from your financial or business investments are few examples of passive income. The goals Relook at your goals and be realistic, than emotional. Being on your own Before you go this way, have your math in place. What makes you happy?
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