Financial Freedom to some degree can be defined as when your residual and/or passive income exceeds your living (and all other) expenses. Let's say your monthly expenses are $5,000 and you earn say $6,000 in profit from assets (Real Estate, Stocks, Bonds, Web Sites, Money you lend, etc.,) you are financially Free and can quit your job (if that's a dream or yours).
Well there are 3 types of income:
1. Earned income; Where you exchange your labor or hours (time) for money.
2. Residual Income; Where you do something once and it keeps earning money (like write a book, build a web site, or buy Real Estate).
3. Investment (Passive) Income; Where your money makes money for you (stocks, bonds, Paper/Notes).
Most people start off with 1 but never get to 2, or 3, ever. There is only so much time in the day and only so much hours and years you can work... one can hardly get wealthy that way.
2 and 3 is using OPM, OPT, OPR = Other Peoples Money, Time and Resources. Learn to do all 3.
Well they are 2 Ways to Become Financially Free Fast...
1. Reduce your Living Expenses; If you're single live in a studio or a one bedroom instead of a 2 or 3 bedroom. Start taking lunch to work. Use a workout DVD instead of going to the gym (get a friend to join you if you need motivation). Eat all breakfast at home (no more StarBucks) and go out for dinner less. Shop less for clothing. Buy things you use often in bulk (at costco, etc). While you make passive income (use some of the money you save to start a business)... start doing something other than your job.
2. Increase your Residual/Passive Income; Do more than one thing... Join 2 or 3 complementary Multi-Level Marketing Companies (and build an effective team). Buy Real Estate. Lend money (backed by Real Estate preferably (you earn way more interest than the bank pays)). Create a killer web site or sell on ebay. Find something you love to do and buy a cheap franchise on the topic (you can start in Jani-King for as little as $2,000) or start your own business but make sure to employ competent people to work for you.
What do you think? Please leave a comment.
Will write again soon,
S. A. Williams AKA sawnet [your RPM Millionaire]
http://www.RPMwealthClub.com
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