It’s a bold article headline, I know, but give me a bit of time to explain myself and you will have a clearer idea of how you can do just that. So, how can you get financial freedom fast at any salary? Is it even possible?
This article gives some answers on how to get financial freedom on any salary. It is very possible to do it. Case study after case study has proven that it’s not about how much money you earn but how you manage it that determines whether or not you get wealthy. I will share with you some simple strategies here that you can start implementing right away.
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In this article, I am going to try and fully address this issue and will take a bit of time by first laying down the foundations by discussing mindset and habits. Without looking into these first, the systems I am going to share with you for becoming financially free will really not benefit you at all.
So, I urge you to read through this whole article. It’s a bit of a long read and should take you about 8 – 10 minutes but these will be well spent minutes if you are serious about financial freedom.
The Right Mindset
If there’s one thing that really fascinates me on this earth, it is the human mind. It is such a masterpiece of ingenuity that we are only beginning to understand. It manages to carry out the most intricate of functions seamlessly together with a host of other functions all at the same time.
To give you a basic understanding of how the mind works, it is divided into 2 parts, namely the conscious and the subconscious mind. The conscious mind is what I like to call the front office or reception area, if you would like to equate it to an organisation.
This is where you allow people in and out of the company. The conscious part of your mind is where you can exercise segregation. You get to choose and decide what is good and what is bad. You decide what you dwell on or what to discard.
This is where your awareness resides. This part of your mind, though, only accounts for between 6% to 8% of your total mind. The rest of your mind is called the subconscious mind. This section of your mind is the rest of the organisation with its different departments.
This is where all the action takes place. It’s responsible for making sure that all the bodily functions like healing, growth, digestion, breathing, blood flow and everything else happen as they should. It takes care of all this so that the conscious part of your mind doesn’t have to think about it.
If you had to consciously process all that is happening in and around you, you would instantly shut down due to the sheer amount of stimuli both within your body and without. There are billions of information signals being sent to your body through the five senses that are being processed in your body right now as you read this.
The mind needs to process it all and respond to it accordingly. The mind was designed in such a way that you don’t have to deal with it all at a conscious level but can delegate it to the sub-conscience which easily takes care of it without missing a beat.
I mentioned that the conscious part of your mind is where you can discriminate between good and bad ideas earlier on. The sub-conscious really doesn’t have the capacity to determine between good and bad or right and wrong.
It simply takes what is passed on to it by the conscious mind and processes that information then sets up situations and events in your life that mirror the information sent to it.
One of the ways the subconscious mind serves you is by automating certain tasks. When you learn to ride a bike, drive a car, dance or shoot a basketball through repetition, you are communicating to the subconscious mind that this is something that is important and the subconscious takes over such that you don’t need to consciously think about it anymore.
The other way that the subconscious takes over a task is when you vividly imagine something over and over again. The subconscious can’t distinguish between a real event and an imagined one so it leads you towards the achievement of the thing imagined.
There’s a lot more involved and I could get into brain chemistry and how dopamine comes into play but I hope this information has given you an idea of what really goes on in the background.
The subconscious automating certain things is how we form our habits. Habits are supposed to help you function and adapt to any environment and repeated situations you find yourself in. They are basically an algorithm which has been written into your subconscious which dictates how you respond to life.
How you manage your money is a habit that was formed through the many stimuli that you were exposed to from birth till now. As I mentioned at the beginning of this blog post, it’s not about how much money you earn but how you manage what you earn that will give you financial freedom.
Develop the Right Habits
You need to develop the right habits that take you towards your goal and get rid of old ones that haven’t served you well. It is a general belief that it takes 21 days of consistent effort to form a habit and 3 months to break it.
It was also discovered that instead of trying to break an old habit, it is more effective to replace it with a new one. In the rest of this post, I am going to show you what you need to begin doing today in order to move you towards developing the right habits.
Pay Yourself First
In his book Rich Dad Poor Dad, Robert Kiyosaki shares a lesson that his Rich Dad taught him. He was taught that he needed to learn to pa himself first and then everyone else later. In other words, take off a certain percentage o your income off the top that you will use to invest.
This goes against conventional wisdom which says to pay your bills first then save what’s left. This conventional thinking is probably why 95% of the population is struggling financially. This is the basis for the money management systems that I am going to share later on.
You need to develop this habit and make that you set aside at least 10% which will go towards investments and, by extension, your financial freedom.
So, what is financial freedom in the first place? Financial freedom is when you are able to meet all your living expenses without having to work. It means a different thing for different people. If all you need to live comfortably is $1.500 or $2,000 per month, then that’s your financial freedom figure.
You need to decide what that figure is first then we can look into the vehicle that will take you there.
Assets Vs Liabilities
In Rich Dad Poor Dad, Robert Kiyosaki gives what I consider the best definition of assets and liabilities. It is this; An asset puts money in your pocket and a liability takes money out of your pocket. In order to become financially free, you need to invest in assets.
Money Management Systems
Now here are the money management systems that I am going to cover. I know there could be many more but these have been the simplest and easiest to implement in my personal experience.
This system is taught in the book The Richest Man in Babylon. It simply teaches to save 10% of all the money you earn. It is founded on the principle that says “A part of all I earn is mine to keep”.
When you save 10% of all you earn, your nest egg will gradually grow and within 10 months you will have your full month’s earnings in savings. Look for low-risk ways of investing and growing that money and more opportunities will present themselves for you to grow it.
When you have money at hand, you can take advantage of some great bargains. You will be able to get really good deals where someone is disposing of an asset at below market value that you can resell at a profit.
This is just an example but all I’m saying is you will be in a position to take advantage of opportunities that come your way.
What you will discover as you do this is that you won’t really feel the impact of the 10% that you’ve put aside. You will pretty much be able to continue with a normal life.
This method is taught by Jim Rohn. He also advocates taking money off the top but instead of 10%, he recommends that you save 30% of your income. Here’s how he recommends you distribute these savings:
- 10% goes towards long term, safe investments
- 10% goes towards active investments
- 10% goes towards giving/ charity
Long Term, Safe Investments
The first 10%, he recommends that you put towards long term investments which offer a steady return. This money is for your retirement years when you can’t work anymore. This money should never be spent or put towards risky investments.
The next 10% is money that you commit towards active investments. You can use it to start a small business or put it towards medium risk, high return investments. This is money that you will actively be growing by your own efforts.
The last 10% is money that you give away to your church or a cause that you support. The richest people in the world lie Bill Gates and Warren Buffet are also the biggest givers. As a matter of fact, the more they give, the more that they earn. It’s a principle that will serve you well when you practice it.
Jim Rohn was taught this money management system at a time when he was going through a very difficult time financially and, because of it, was able to build a financial empire. He stands by this system and advocates teaching it to children from a very early age. Of every dollar you earn, 30% is yours to keep.
You can learn more about it in his audiobook collection Ultimate Jim Rohn Library . It’s a worthwhile investment that I guarantee you won’t regret.
6 Jars Method
The final system that I will share is T. Herve Eker’s 6 Jars System. He teaches it in his book Secrets of the Millionaire Mind. This is my favourite system and the one that I actively practice. He says that we need to have 6 jars or accounts that we distribute money to in the following ways:
Jar 1 10% – Financial Freedom Account (FFA)
The Financial Freedom Account is your golden goose. This is money that you set aside towards financial freedom. You invest it where you get passive income. You don’t ever touch this money but the idea is to a place where you can get a good rate of return (10% or more) per annum such that it can support your lifestyle.
Jar 2 10% – Short Term Savings for Spending
The second jar or account is for short term savings on major purchases. This could be a car, vacation or any other thing that you want to save towards. 10% of your total income goes here.
Jar 3 10% – Education Account
The third jar or account is where you save up for your education. This money goes towards things that build you up. This can be books, courses or seminars that contribute towards your growth as an individual. 10% goes here as well.
Jar 4 10% – Giving
I’ve already talked about giving under Jim Rohn’s system so I won’t dwell on it here. 10% goes into your giving account.
Jar 5 10% – Spending
This is my favourite jar. Everything that you save in this account is for spending. As a matter of fact, you are not allowed to keep the money in this account for more than 3 months.
I spoke about the power of the subconscious mind earlier. This account serves as a reward and better positions you to be more productive in your quest towards financial freedom.
Jar 6 50% – All Other Expenses
The final account or jar goes towards your necessities like rent, food, fuel and all your other bills.
When you follow this system, you will see your life begin to take a shift for the better. Something almost magical begins to happen when you start applying any of these systems whether it be saving 10% of your income or the more comprehensive system that I just described.
You will begin to notice more money flowing to you. It’s as if you have proven to be able to handle money and therefore can be entrusted with more. It’s an amazing phenomenon.
Start right away to implement any one of these systems regardless of where you are financially. This is how to get financial freedom fast at any Salary. The point is to develop the habit by impressing upon the subconscious. Over time you will become a person who manages money well and soon enough you will find yourself financially free.
Rich Dad Poor Dad
The Richest Man in Babylon.
The Millionaire Next Door
Ultimate Jim Rohn Library
Secrets of the Millionaire Mind