7 Tips to Gain Economic Freedom
The Ways Economic Freedom Improves Quality of Life: Your Income Is Not Your Wealth. Allocating Capital to Invest. Real Wealth is Taking Control of Your Time. You Must Choose Your Life Partner Correctly To Take Your Economic Freedom In Your Hand.
Most of what you read on the internet or left and right about doubling your money and getting rich is not true. The reason for this is that the people who wrote that article are not rich themselves and only write their own ideas and thoughts. But if you want to learn useful things about this topic, you should start from scratch and look at the lives of people playing with money now.
That's why we have prepared this "step by step economic freedom" article for you. While creating 8 tricks that will help you take your economic freedom in your hands, we have really been inspired by the lives of people who have gained their economic freedom from scratch. Thanks to this article, you will be able to learn how to get rid of the stress of making money and take your economic freedom.
1- Your Income Is Not Your Wealth
Many people believe that the key to getting rich is to have a high paying job. Yes, when you look at the truth, your job may be easier when there is money coming regularly every month, but the real secret to getting rich is not making a lot of money, but spending less than the amount you earn. In this context, a football player who earns $ 20 million annually may go bankrupt, while a truck driver who earns a very small amount can have a considerable amount of wealth in his retirement. To avoid this spending trap, you must be aware of the power of long term investments. Although this fact about money may sound like a cliché to most of you, it is a completely logical fact that is definite and non-negotiable. .
So what is wealth? The definition of wealth for me is this:
Wealth is part of your equity that generates you capital, income and shares without you actively exerting effort. If you are a doctor or a lawyer, you must study for many years and, if possible, complete your graduate education in order to earn a good salary. On the other hand, if you are the owner of your own business; For example, if you are a car wash or parking lot operator or if you have your own shares, patents or real estate, you can sit by the pool and sip your drink comfortably. Because the main point here is that you can have an income that allows you to live without compromising your lifestyle when you stop working or when you are unable to work one day. More importantly, unlike a salaried employee, a passive income cannot fire you because it is easier to lose a smoking job.
Your wealth is measured by how long you can maintain your standard lifestyle without additional salary. In other words, if you quit your current job or get fired, how long can you continue to get in your car, go to the movies to watch the movie you want, continue your hobby or buy the outfit you want, without compromising your living standards? The average people are not kneaded by this fact, so no matter how much money they make, they always complain about not taking their economic freedom and not being able to secure their future.
2- Allocating Capital to Invest
The only way you can use investment opportunities is to have enough money to invest. Investing is a successful investment if your life changes as a result of it.
Building yourself a fortune and taking your freedom economically is a slow process. As Warren Buffet said: 9 women cannot get together and give birth in 1 month. Good and good things take time.
The little things you do every day, such as reducing your expenses, earning extra income, start to build up over time. Thus, in every investment opportunity you encounter, you can invest in these new opportunities at a higher rate than your previous investments. This is called "compound interest management". Thanks to compound interest management, interests and shares start to generate their own interest and their own capital over time. That way, $ 10,000 could evolve to $ 2,890,000 in 50 years.
3- Real Wealth is Taking Control of Your Time
How can you really know if someone is rich?
You will know when you really get rich when you take the luxury of planning how you spend your day. I know I have said this in my previous articles, but very few people have fully absorbed this fact. No matter how much money you earn, if you spend your days doing things you are not happy to do, pay to do things you are happy to do, and you cannot afford to spend your own time as you wish, then you are not rich.
Every morning when you go to work or work from home, you should feel like opening your birthday present when you turn on your computer. This is no ordinary advice. If you are doing a job that gives you this feeling, you will have a great competitive advantage. Because only this way you can work 10, 15 or 18 hours a day for many years. You work not because you need money, but because you have passion.
4- There Is No Link Between Your Grades In Your Education Life, Being Rich And Accessing Economic Freedom.
Researcher Thomas J. Stanley, author of the Millionaire Next Door, has shown that the results of many years of research have shown that a person's grades in education are not related to whether the person is rich or not.
So why do educators, parents and guidance counselors tell children that if they get low marks, they cannot be successful in life, while studies say otherwise? Stanley says this is because the people who gave this advice were not economically free themselves. For this reason, the people who give these recommendations have no idea how economic freedom can be achieved and they advocate stereotypical views that successful students will also be economically successful in their future lives. Likewise, those who support this view omit the detail that most millionaires wear simple jeans and a T-shirt instead of a suit on their way to work. They go to eat in the average restaurants we all go to. They live in places with average quality of life.
If you want to guess who can truly be rich and economically free, you can take a closer look at the lives of self-sufficient students who earn average grades but work to cover their own expenses, and those who are passionate about what they do and do not do so to gain status.
We don't make videos to make more money. We make money to make more videos. -Walt Disney
5- In order to take your economic freedom in your hands, you must choose your partner correctly.
No matter how successful you are, if your partner is not as disciplined, frugal and investment-oriented as you are, your efforts to address your economic freedom for a better life will either be in vain or not achieve the success you desire. Marrying the wrong person affects your life both emotionally, socially and economically and prevents you from making the progress you want in your career. Because while you want to build a future for yourself, that person makes it almost impossible to take your economic freedom by spending your money.
In order to build the life you want, you need support that allows you to take risks, whatever the outcome. Because when you fail, you know that there is always someone behind you who loves you unconditionally. As strange and interesting as it may sound, research shows that most success can be achieved through good psychology. If you're worried about whether your partner will leave you, how can you focus on your job to get the life of your dreams?
6- Niche Markets Are Profitable Even If They Are Not Perfect.
Millionaires tell newcomers that if they specialize in a field, they can rise more easily and be successful. Contrary to what most people think, industries that make big money include waste management, fast food, clothing, and trade.
Consider the example of Sam Walton, founder of Wallmart. Walton, who opened his own shop in a remote town in America, now owns the world's largest retail company and has an annual revenue of $ 125 billion. Although there is nothing cool about selling flip-flops and scented cologne for $ 2, Walton has achieved this success today because it sells easily accessible products for Americans. Because he had a vision and set up his company as a store and did it without pretension.
Business owners often make up a large proportion of the millionaire population. Hard to believe, for example, the owner of the largest hardware store in a city has more income than the earning doctor. This is because doctors spend money on buying status symbols to convince their patients that they are successful. But otherwise, a hardware store owner does not have such anxiety or effort, and therefore he uses the money he earns by investing, rather than spending it on such things. And this money continues to grow like a snowball over the decades. Unfortunately, this is not a fact you can learn at school!
7- Support the Creative and Productive, Not the Unskilled.
Providing financial support to your relatives who are constantly in financial difficulties or who cannot achieve their own economic freedom usually results in disappointment and loss for you. For example, let's say your son is a doctor and your daughter is a lawyer. You probably think your children don't "need" money because they have good jobs. But on the other hand, you help your other child who has not caught an ax, to give pocket money, to pay his loans, to pay his house rent and bills.
Whether you are doing this consciously or unconsciously, you may not want to admit that your child, who is still dependent on you economically, is "lazy" or "unskilled" while you are proud of the achievements of your children who stand on their own feet economically.
Although you do not want to use harsh words such as "lazy" or "unskilled" for your relatives of this type, if you are giving the same, "equal" assistance to your more successful child and your unsuccessful child, I regret that you are making a big mistake. Especially if you help your failed child the more you make an even bigger mistake.
Because helping people who have failed to take over their economic freedom does not benefit those people, but instead makes them addicted to help. In other words, these people are constantly looking out for what comes from yo