A couple of years ago, I had a question on my mind that haunted me every day for a long time. Every morning when I woke up, and every evening just before I went to bed, I was asking myself, “How do I become free?” Not just financially, but in the real sense of the word.
The following sentence is the best definition of financial freedom.
To become financially free, you have to earn an income which exceeds your expenses such that you can live without money worries.
In this post, I will give you three ways or steps that you can take to become financially free in 5 years or even less.
Before we begin, I would like to share a definition of money from the book You Were Born Rich, by Bob Proctor.
Money is Important. Money is a servant. You should love people and use money, not the other way around.
I highly recommend this book to everyone who is interested in learning how to use the money for a higher purpose other than just spending it. Bob Proctor did a great job with this book to help us understand what money is, how to use it and not be used by it, how to attract it in our life, and much more.
Now, let’s get the business going.
3 Ways to Become Financially Free
Way 1. People at Work
It means you trade your time for someone’s money, which is probably what you do right now, in addition to 99% of our population.
This is also called an active income.
Many people hate their job. Some people are ashamed of what they do for a living. Let me tell you, there is no shame in a 9-5 if you provide an honest service to people. It must be taken with pride, not guilt.
I was waiting tables in restaurants, bars, and hotels for eight years. Every single day I did it with pride. I was not ashamed to make a cup of coffee and take it to a person with a smile on my face. Sure, there were tips and wages, but my satisfaction with my service was a smile given back.
If you work hard and more than eight hours per day you can become financially free. Many people live a decent life from trading time for money, providing to their families more than they need.
Moreover, if you are well paid you can save up a respectable amount of money during 10-20 years. So you can try to boost your financial freedom by following the second way.
Way 2. Money at Work
Employ money to get more money. Or in other words, let your money work for you.
Here are few examples of money investment:
- your own business
- savings for return interest rate
- stocks, bonds, and shares
- real estate investment
If you have some expertise, like waiting tables for example, and you managed to save up some money for your own venture, or you find an investor or get a loan, you can turn your knowledge into a profit. Depending on the field of your expertise, amount of money you have, and work you are capable of performing you can become financially free in 3-5 years.
Next, you can try to invest some money into stock market. No major expertise is needed if you wish to take a swing at stocks. You can try some FREE apps such as eToro. You can trade for virtual money after you sign in. This means you can play for as long as you wish, or until you get enough confidence in your trading skills to start a real money venture.
Another example is, you can open a savings account in gold. Or, roll over your existing savings plan into gold. This means you will buy and hold physical gold. This kind of money investment is wise in many aspects. First of all, gold is not like a flat paper currency, which means it is more stable than money. So in the event of a market crash like the recent one from 2008, your money would be safe because it is converted into a gold. Moreover, there are less and less gold resources left in the world which means, the price of the gold is rapidly climbing. Unlike paper money, a gold cannot be produced at will. In other words, if you invest in gold your earnings from the investment will increase over time.
You can invest your savings in real estate. Let’s say you buy an apartment and rent it for a bit higher price to earn a return interest.
Or, you can buy a house, refurbish the house, and sell it for a higher price. You can keep repeating this procedure as long as you want.
All of these would eventually transform themselves into a form of a passive income.
However, after much research I found a third and a much smarter way to become financially free in 3-5 years!
Way 3. Multiple Sources of Income
What does this mean?
Way 1 + Way 2 = Multiple Sources of Income
Basically, you can earn money from your passive income while being busy with, and be earning from your active income. Your passive income allows you to earn even when you sleep!
Almost everyone who has created a state of financial freedom in their life was using a principle of MSI. They have an active income coming to them from their major occupation. Plus, they managed to add to that a few passive incomes from multiple sources.
The Best Way to Become Financially Free
Now, I am going to give you my own example of how I managed to create multiple sources of income in my life. Therefore, I can live without money worry, or simply, financially free.
I earn a passive income from affiliate marketing. I run this website, I write posts about topics I like to discuss with people, and ultimately I earn a passive income from my writing. It takes the minimum to no effort to maintain it because it is a simple thing to do. Plus, I am turning my hobby into a passive income.
Furthermore, I created a virtual portfolio on the stock market. Once I saw it is easy and anyone can do it, I invested a small amount of my real money to replace my virtual assets. I don’t have to do much to maintain it. All I have to do is to log on once per day to check if everything is stable and to see how much I have earned that day.
My third source of income is my part-time job at a local warehouse. From this job, I earn enough to cover my living expenses (rent, food, clothes, utilities). Everything else I earn from the two passive incomes I use for further investment to create more streams.
Keep reading for more!
So, to say a word or two about my favorite passive income, affiliate marketing.
Probably you have heard about the hype it is making. For the last 10-15 years, online marketing is a fastest-growing field of work. It is snowballing so big. I will take the liberty of saying online marketing is the business of the future!
More and more people are turning to online or affiliate marketing for their piece of the pie. And, I must say it is a gigantic pie!
A giant like Google, which by the way plays a significant role in online marketing, is spinning $90 billion per year!!!
Google earns a significant portion of its revenue from advertisement. As well as Facebook and YouTube.
All three online giants are an essential part of the machinery called online or affiliate marketing. Moreover, they are necessary to use if you want to take your piece of the pie they bake.
Just a small crumb, a tiny piece is enough for you to become financially free.
And the best thing is you can start for free! No initial investments are needed except your time, laptop, and good internet connection.
You Can Become Financially Free in 3-5 Years
You see, doing something such as affiliate marketing will give you a great opportunity to create multiple sources of income in a short period of 3-5 years.
One website, after it is finished, up and running, can earn you a passive income. By creating second, and the third one, you can create more of the same.
The beauty lies in the fact that you can work on something you actually like and enjoy.
The basic concept of affiliate marketing is to connect the customer with a merchant. You work inside the niche. The niche would be your field of interest, something you can write about. For example, a personal development niche is my passion, so why not earn a passive income while helping others to become better.
Next, you will have to build your own website (your own place of business), create some content and attract few visitors to your site. If you provide a helpful information to your visitors, maybe they will decide to contribute your efforts by clicking through your links and buying something from the merchant whose products you promote.
In the end, it is a win-win situation for all three parties.
However, it is a job like every other!
So, don’t get fooled thinking something like you can become rich quickly and f*** off everything.
If you can devote 3-5 years of hard work and countless hours by the computer you can become financially free.
Why 3-5 years?
Well, 5 years is usually the period that takes for every new business to become established. In the first year, you will only get started. As the years go by you will learn and grow. By the end of the fifth year, every successful business should be established firmly.
It is not a rule! However, it is a fact.
Maybe you will explode straight away, or maybe not. You will never know if you never try.
Be Free Means Do What You Love
Confucius, a great Chinese teacher, and philosopher once said:
“Chose a job you love, and you will never work a day in your life.”
When you add to it financial freedom you will experience the true meaning of the word free.
I bet you do have some interest in your life, a hobby of some kind, maybe a dream you have given up because you had to go to school, finish college, get a job, and work your ass off for someone else’s profit.
Your hobby can be turned into a business. And, a way to go is affiliate marketing.
To your success!
If you ever need a hand or have any questions, feel free to leave them below and I will be more than happy to help you out.
All the best,