Many of us are thinking about financial freedom but have you ever asked yourself how to get financial freedom fast from your perfect business? This is a financial freedom combination that brings together your ultimate end goal of financial freedom with the perfect business for you.
“How to get financial freedom fast from your perfect business” is a term which is searched often in the search engines. It’s possible to get the perfect lifestyle business and achieve financial freedom fast. You need a well-crafted plan and the drive to execute it.
First things first, what exactly is financial freedom? A lot of us, me included, have at some point confused financial freedom with having loooooots of money. This really isn’t the case. Financial freedom means different things to different people but the general definition which cuts across the board is having the income to live on -even if you never work again.
To one person, this may be an income of $100,000 coming in every month whereas someone else can consider themselves financially free if they have $500 coming in every month. Both of these people could be living a very happy and fulfilling life.
If both of these men have a means of getting this amount every month without the need to ever work again, they have achieved financial freedom. It’s not about the amount of money but about the individual goals.
How to Gain Financial Freedom
How then does one gain financial freedom? I share my own blueprint many times on this blog and you can read the following articles for a more in-depth explanation on how it all works.
In these 2 articles, I give you a simple to follow blueprint that will get you from where you are right now to where you would like to be. Robert Kiyosaki, the world-renowned author of the Rich Dad book series, says of getting rich, that it is a simple and boring plan.
This is the same with what I am going to share here and I learned this method in the book by T. Harve Eker “Secrets of The Millionaire Mind.” You can get your own copy by clicking on the link below. I highly recommend it and will also get a small commission if you purchase through this link. I would really appreciate it if you did.
[eafl id=”29″ name=”Secrets of the Millioaire Mind” text=”Secrets of the Millionaire Mind”]
In this book, Harve Eker Eker shares about the simple money management system that he uses and has also taught to his children. I highly recommend this system but I will not talk about it more in this article as I have already covered it extensively in the articles above.
In another book that I highly recommend, [eafl id=”25″ name=”The Millionaire Next Door” text=”The Millionaire Next Door”], the Authors really dug deep into understanding how the wealthy in American society managed to get to that level. What they discovered was that the self-made millionaires and Deca millionaires (10 million and above), were not really high-income earners but were rather, great managers of the money that they earned.
The 2 books I mentioned above agree upon this one fact; the path to financial freedom is good money management. When they first started doing their research for the book, they discovered, much to their shock, that most of the people who had all the symbols of wealth like the big houses, expensive cars, boats and so on, were oftentimes very low net worth individuals relative to their earned income.
In essence, the people who managed their money well ended up becoming financially free and amassing great fortunes while the high-income earners in the posh neighbourhoods and members of the country clubs had little to show for it as far as net worth was concerned.
Their high consumption lifestyles often eat away their high income. So, how then, do you get financial freedom fast from your perfect business? This is the big question that this article seeks to answer and we will now explore this in a bit more detail.
Your Financial Freedom Plan
The basis for any successful endeavour is always a clear blueprint which will take you from where you are to where you would like to be. You can’t simply “wing it” and expect to make a significant impact as far as financial freedom is concerned.
Your plan needs to answer the following questions in order for it to be a solid one:
- How much do I need to live comfortably every month?
- How big a lump sum do I need in order to able to generate that money passively?
- What passive income sources can I invest in?
These are a few of the questions you need to ask yourself so that you gain clarity. Let’s now look at each one of these questions individually.
How Much do I Need to Live Comfortably?
How much money do you really need in order to live the life you want? Remember, financial freedom really is an individual benchmark. It’s not something that society imposes on you, as is often the case these days. It has to be a number that speaks about you and where you want to be in life.
Your financial freedom figure should be one that allows you to pay all your bills comfortably while living a fulfilled life. As mentioned already, this figure can be $500 per month or $100,000 per month. It really all depends on you and your needs.
Ok, now that we’ve gotten that out of the way, the next question you need to ask yourself is, how big of a lump sum do I need in order to hit my financial freedom figure each month.
How Big a Lump sum do I Need In Order to Generate my Required Money Passively?
T. Harve Eker in [eafl id=”29″ name=”Secrets of the Millioaire Mind” text=”Secrets of the Millionaire Mind”] says that you need a lump sum that generates at least 10% per annum. Let’s say that your financial freedom figure is $5,000 per month or $60,000 per year. In order to generate this, you will need $600,000 invested at a return of 10% per year.
Now, if you are like most people, you will be saying “but I don’t have $600,000 or whatever lump sum required to meet your financial freedom numbers. That’s ok. In the next sections, I will talk about ways that you can get to financial freedom faster without necessarily having the big lump sum.
What Passive Income Sources Can I Invest In?
For now, let’s assume that you do have the lump sum. What are the passive income sources that you can invest in? I’ll point to the advice of, in my books, the greatest investor of our times, Warren Buffet. In an interview, he once stated that he could guarantee to earn an investor 50% in a year.
In this strategy, he recommends that instead of investing in the big companies, He would look for smaller companies and invest in those instead. He was literally able to make a fortune in his younger days using this strategy. You will obviously need to do a lot of background research on the companies before investing your money.
The good thing though is that this information is readily available online. You can find annual reports for companies all over the world.
Another gem that Warren Buffet drops is that you should never invest more than 20 times in your lifetime. What he meant was that if you had a 40 year period in which to invest, you should invest once every 2 years. This approach forces you to be very selective and thorough about what you invest in.
Your Financial Freedom Vehicle
We talked about financial freedom, Now let’s look at how you can engage in the perfect business in order for you to get there. The business models I am going to discuss in this section are what I would describe as lifestyle businesses. They are businesses that require very low start-up costs and can be done part-time or full time.
The businesses I mention below are ones I am actively involved in or have done at some point in my life.
This is one of the easiest to get into and requires very minimal investment. In fact, for only $3.00 per month, you can be up and running. That’s the amount you need to buy a hosting account and set up your blog. This is all very easy to do.
If you want to buy hosting for your blog, please do consider buying through my link below:
[eafl id=”96″ name=”BlueHost” text=”Bluehost hosting”]
For a more comprehensive step by step teaching on how to start off with blogging, check out my article below:
You can blog around your passion like I’m doing or research a topic which you can start a niche blog around. Either way, you will be able to make a living from this method if done right.
Affiliate Marketing is another great way to start off as a beginner and it’s also free to do. In affiliate marketing, you get paid for referring people to a product or service. There are different types of affiliate offers that you can promote. The most common formats are:
- Cost Per Sale
- Cost Per Action
Cost Per Sale is when you are paid a percentage for every one of your referrals who buys. For example, if you buy a product through any one of the links that I am promoting a product, I get paid a certain percentage as a commission. It’s a win-win both for the product owner and myself.
I get to promote a good product that I did not create and make money from it while the product creator gets to have an army of affiliates promoting his product for free. Cost Per Action is when you are paid for
referring a prospect who completes a specific action entering their email, downloading software or a host of other actions. It’s not necessary
for fora purchase to be made for you to be paid. This makes CPA offers easier to promote and get paid but they also pay less than CPS offers. Here are other articles that I have written on Affiliate Marketing:
- Affiliate Marketing Definition & Path to Affiliate Success
- Top 21 Affiliate Programs That Don’t Require a Website
- 6 Free Ways to Promote Click-bank Products Without a Website
- Ways to do ClickBank Affiliate Marketing Without a Website – 4 FREE Methods
- How to Start Affiliate Marketing for Beginners
The next business model that I am going to share is product creation. You can create your very own information product that you can then sell by yourself or enlist affiliates to promote it. The beauty of Info products is that you create the content once and profit from it for a long time to come.
Info products can come in the form of an e-book, audio or video product. The most common format of late are e-courses that can be delivered over email or video. Bloggers monetise most profitably through e-courses once their readership starts growing.
It is a great way to start earning a really good income. You can start off by writing an email course or e-book which you can later repurpose into an audio or video course or product.
I recently got into dropshipping and am loving the potential that it holds. It’s one of the quickest ways to get set up and start earning. It is also one of the most competitive if you are new and don’t have good guidance to help you navigate the waters.
Dropshipping is a form of e-commerce that does not require you to hold any inventory. You simply set up your online shop and populate with products from a site like aliexpress.com. You then put a marked up price of these products ranging from x2 to x5 or more.
When someone buys from your site, you then use their money to order from Aliexpress and the company will ship the product directly to your customer’s doorstep. You simply pocket the profits. It’s a nice and clean way of doing business and provides great scope for scaling up.
These are just a few ways of earning money which gives you great leverage by allowing you to do them part-time and grow them to a place where they can replace your full-time income. They are the vehicle that will take you to a place of financial freedom and the next chapter will show you exactly how by tying it all together.
Your Business is There so That you Invest More
This is a concept that I learned from Robert Kiyosaki and other great business people throughout my study and research. Businesses, for the savvy investor, provide you with money to invest. What you want to do is be able to grow your earned income through your businesses so that you can invest more.
Your investments are what you want to grow. Warren Buffet is living proof of the power of investment. At one point, he and Bill Gates kept swapping the richest man in the world title. There is huge power and potential in making the right investments as this will lead you to true financial freedom.
I hope this article has helped you to answer the question, How to get financial freedom fast from your perfect business. As always, I would like to hear your thoughts and comments on this post.