Financial Freedom and Independence

Financial independence

I am sure many people will disagree with me on this, but like I said before, from my point of view financial independence is something entirely different from financial freedom.

For me the phrase Financial independence describes a financial state where your earn income independent of your time, effort or even location in the world.

In the YouTube video, I refer to multiple streams of income providing independence. Multiple streams of income is important, but that alone does not provide independence.

If you consider the four cashflow quadrants as described by Robert Kiyosaki in his book ‘Cashflow Quadrants’, you start to gain insight into a business system providing income independent of your input.

Learn Earn Invest Repeat

Before we can start earning money, we need to learn how to do it – in other words, we need to learn first, and then we earn. Once we start earning income, we should use a portion of our income to invest. The first thing you need to invest in is yourself. So find a way to keep some of the income you worked hard for, for yourself.

As you invest in yourself (your knowledge, your skills and your understanding of self), you will be able to earn more. Always save to invest first. The only reason to save is to enable yourself to invest.

Once you start to earn good money, you investment savings should go toward making your money work for you. This is where you start building assets.

Once you have set a system in place and it generates income with little or no input from your side, then you are achieving financial independence.

Work from anywhere

Independence can also mean that you are not bound by your physical location and that you can earn money regardless of whether you are sitting on the Clifton Beach in Cape Town or in the comfort of your home around the people you love.

How do you do this though?

There are many ways to do this, the first step is obviously to start earning income so that you have something to start with. No excuses: “wherever your starting point is, take the first step and grow from there”. There are many ways to start earing income, but that’s a topic for another blog post.

After you achieve step 1, there are 3 simple steps to follow right from your first paycheck landing in your ‘pocket’ (bank account, hand, wallet – whatever you prefer).

These steps are discussed in detail another blog post called ‘Why the rich get richer‘, but these steps are:

Summary

To earn extra income, you should FIRST INVEST IN YOURSELF to increase your earning potential. Once you have developed your own skills, your earning potential automatically increases, but you should ALWAYS spend less than you earn to enable yourself to achieve both FINANCIAL FREEDOM and grow toward FINANCIAL INDEPENDENCE.

I am sincerely grateful that you visited my blog and I truly hope this adds value to your viewpoint. Please feel free to get in touch via the social media, the contact page or simply by leaving a comment (spam comments WILL BE DELETED).