The road to financial freedom (tool box)

Everyone wants to be financially free. However, most people who want to be financially free do not possess the habit of those who have attained that height. Personally, I have seen doctors who are very good at their jobs, earn a lot and yet are still in debts. For a second, I was scared for my future because I thought being a doctor meant being rich. I turned on my internet and searched for top richest men in the world and saw a list of them. Jeff Bezos is currently the richest man on the list followed by Bill Gates. There was no doctor on that list and questions started running through my head.

What is financial freedom?

According to Investopedia, financial freedom means having enough savings, investments, and money on hand to afford that lifestyle we want for ourselves and families. To me, financial freedom means having money without having to do the regular days struggle. Regular things include things like always going to work even when you don’t want to, doing overtime and working under somebody. Financial freedom doesn’t just happen overnight. I feel financial freedom means being free from the captive of working for money. When a person gets to the point where money works for him, that person is financially free. Many people try to find quick ways and short cuts to financial freedom. I am so sorry to burst your bubble, the road to financial freedom has no short cuts It takes a lot of time, discipline and determination.
In this post, I will be writing about financial habits that lead to financial freedom.
So sit tight and read carefully. You might get something that will make you rich from this post.

1. Rich people increase their asset column

My dictionary defines an asset as something or someone of any value. Robert Kiyosaki defines an asset as “ anything that adds money to your pocket”. This definition of an asset sounds so easy however,the problem lies in actually identifying and differentiating an asset from a liability. If you are going to be rich try to increase your asset column. rich people go the extra mile to invest in skills either by investing in themselves or by investing in others. Skills like financial skills, risk management and leadership skills are some of the skills that are worth learning from. This skills in turn brings more revenue for them. These skills they acquire help improve their income

2. Eliminate debts

One of the greatest hurdle to financial freedom is debts. Some people are in so many debts that they have given up on this quest to financial freedom. Eliminating debt requires a lot of discipline. You can start by throwing your credit cards away and paying for what you acquire in cash. Also, you could allocate a certain fraction of your income to elimination of debt. I would suggest ten percent of my your income.

3. Read Books

Anybody who is going to be financially free must be willing to read books. If you want your business to grow, you need to read a lot of books. Warren buffet says that he reads anything, from financial books to wall street journals to self help books. Bill gate reads a book a week. Reading books are ways in which people have knowledge about things without experiencing them. My mother would say that” if you do what rich people do, you would definitely become rich”. Books like rich dad poor dad, think and grow rich, and the richest man in Babylon are a few books I recommend that you read. This will help you in your quest to financial freedom.

4. Get a mentor

Most of the rich people I have read about had mentors. An example is Robert Kiyosaki, his mentor was his friend’s dad and he learnt most of the things that made him rich today. Mentoring prevents you from making little mistakes that you would naturally make had it been you were doing things alone. Mentors help with orientation and this orientation is what most people need to do exploits.

5. Earn from different sources

The owner of McDonald once asked some student what he does and most of them said he is into the business of food. He later went on to say that he is into real estate. Long story short, rich people find many ways to make money flow into their account. The many ways could be active or passive. Examples include investing on stocks and bonds, currency trading, real estate and affiliate marketing. Jeff Bezos is famous for affiliate marketing through his company, amazon.

These are my views on habits rich people possess that poor people lack. If you have more things to add, your feedback will be much appreciated.