Most people are still in a traditional 9-to-5 job and don’t know how to achieve financial freedom yet, even less so what this freedom truly means.
Multi-millionaire and Author of Secrets of the Millionaire Mind, T. Harv Eker, has been on both sides of the financial spectrum and discovered the exclusive differences between what keeps a person poor, and what keeps a person rich.
If one of your highest values in life is freedom, with all your resources, you'll enjoy these insights!
For the majority of the working population, their collective biggest concern is their financial future and for good reason!
After all, we spend our lives working hard so we can have enough money to be able to do what we desire… essentially chasing freedom.
While many people are searching for the fastest way to financial freedom, the biggest mistake most people make is equating ‘rich’ with ‘free’.
Everyone who Harv has ever spoken with has a desire to be financially free and happy and successful.
There is one major misconception to clear up though.
You don’t need to be rich in order to be free.
Once you intend to become rich, being financially free is not a natural consequence.
They’re simply not the same thing.
In one of Harv’s videos he mentions some real world odds that people face and they’re worth contemplating, because knowledge provides perspective.
Statistically, there’s a mere 5% chance that you will ever get into the highest income bracket.
How does this bode for your financial freedom plan, or your dream holiday?
Most people have only a 1% chance of becoming what would be considered ‘rich’.
How are you liking these odds so far?
He elaborates that even if you do earn a fortune, you might still be required to work 10 - 12 hours a day to keep that income and lifestyle that you’ve created for yourself steady.
I’m not seeing any form of freedom here, are you?
This is not how you win the money game, it’s not how Harv won the money game either.
What this is called, is being a slave, albeit a rich slave but still a slave.
The only way to win the money game is to become free… financially free.
Because once you are free, you have a real choice of what you’d like to do with your life.
And to Harv for one, that’s what it’s all about - the freedom to choose.
This is also why being rich and being free are completely different.
Not only do they take different amounts of money, but the strategies for getting to each are very very different and it’s critical that you understand this.
If you desire to become free as soon as possible, you have to go directly to free, instead of taking the much longer route of trying to get rich and then hopefully ending up free.
You have to put your energy, your attention and your strategies on freedom first.
And then after you become fully financially free…
After you have won the money game…
After you never have to work again…
And after you never have to worry about money again…
Then and only then you can add an entirely new goal to be rich.
If you really understand this, you’ve just changed your life.
Many people say, “Well, I’m going to do what I need to do to be rich, and then I can become financially free.”
Well, when we refer to the desire to be rich, are we really talking about money, or are we talking about freedom?
There’s a big difference between these two!
See, being rich requires millions, multi-millions even and there are very many rich people who are not free.
They have to keep working their tails off to have money come in and to hold on to their wealth because they neglected to set it up effectively — that’s to say they haven’t systemized their businesses to operate profitably in their absence.
They haven’t learned or modeled from other people who have succeeded before them.
So does being financially rich certainly mean you have more freedom, or peace of mind, or security?
Being rich absolutely provides the means for material convenience, but we all know there are many rich people out there who are utterly miserable.
Oftentimes they miss the actual point of having wealth and being rich - happiness and freedom.
Instead, some rich folk end up working even more than the average middle-class Joe who struggles just as much, because they believe they must continue to work harder to stay rich and be ‘free’.
So what’s our end game?
What are we truly after?
What is it we desire most?
A nice house will provide a sense of security and comfort.
A nice car can amp up our feeling of status and importance.
Toys and travel can counter boredom and stimulate excitement.
But here’s what you must understand.
You don’t have to postpone experiencing happiness and freedom, or feeling a sense of significance, pride and security until you’re rich.
The goal is not to get rich so you can be free, it’s the other way around!
Your road to financial freedom is quite different to your road to riches.
Fundamentally they are different strategies.
So here’s the strategy Harv recommends...
Become financially free first, and then becoming rich will be the frosting on your cake.
It requires far less money and consequently less time to commit your focus to your financial freedom, than it does to focus your resources on getting rich.
And what’s the fastest way to win the money game and do well financially?
By managing your money very well, utilizing key strategies and nurturing habits which support your objective of achieving your goals of sustained financial freedom and long-term wealth.
If you’re not sure how much money you require to consider yourself financially free, use this simple formula to find out:
Financial Freedom = Passive Income > Expenses
Now you have your financial freedom number.
You must earn more than your financial freedom number to make sure your basic requirements are covered.
Depending on your choice of lifestyle, you can be financially free even if you earn $65,000 a year.
Your life can be fulfilling, if your ‘wants’ and ‘needs’ are clearly defined and if your debts and mortgage situation are handled.
Freedom is proportionate to the outcome of what you truly intend.
Therefore, keep in mind the end-game.
You’re not getting rich to become free.
You must be free so you may appreciate the benefits and advantages of being rich.
And since there isn’t any freedom in waiting, don’t bargain on freedom arriving in the future.
Freedom starts right now.
For those who know what they’re doing, the road to their financial freedom is a short one.
Make sure you know the difference between being financially free and being financially rich.
With this awareness, your life instantly changes!
Being financially free means that you have a passive income higher than the amount you require to survive in the life you have created for yourself.
This also provides you with the choice as to if, when and whether you work or not.
If you spend your time, your life, your health and your sanity on doing something every day just to make sure you can keep the roof over your head, have a meal a day, get from A to B, you’re not financially free yet.
To achieve your target of true wealth, fast financial freedom first is goal #1.
A little bit of planning goes a long way and in the infamous words of T. Harv Eker, ‘You Are Your Habits’, so build the habit of freedom and remove the limitations holding you back from riches!
Has your Mind ever wondered…
Of course you require an income of sorts, and the sooner you start, the better.
Use the 6 JARS Money Management System, or JARS Budget if you prefer, to allocate your income in ways that build on your financial freedom, plan your spending and savings as well as cater to your investments.
Use this ‘financial freedom formula’ to know your financial freedom number:
Financial Freedom = Passive Income > Expenses
Add up all your expenses and there’s your financial freedom number.
Remember that your passive income must be higher than this number to be considered ‘free’.
Learn how to manage your money well.
Understand the difference between your ‘needs’ and your ‘wants’, and stick to your JARS budget.
Your habits will be your rise or your fall, and you're one decision away from making or breaking your financial life.
And adopting millionaire money habits could be your saving grace.