Four Words to Achieve Financial Freedom - What are they?
During my financial literacy seminars, I was usually asked the question: "How can I save if there are a lot of bills to pay and other expenses and my income is not enough to support these?"... to which I always answer it in four words... EARN MORE DESIRE LESS.
EARN MORE
Earn more from its very essence means to have a larger income. You may transfer to another job with a higher salary or you can take additional sideline jobs to amplify your income. But the great secret of the rich according to Robert Kiyosaki is not to earn more from active income but to earn more from passive income.
Passive income is money working for you. The great secret of the rich is to generate assets that will provide passive income for you, so that even if you don't work, you are asleep or you are in a vacation, your income still flows to your bank account. Examples of these are the cash flow derived from rental income from real estate properties, online income coming from advertisers from blogs, royalty fees coming business franchises, songs and books.
DESIRE LESS
On the other hand, desire less means “downsizing” your needs and wants and prioritizing your needs more than your wants. As Warren Buffet said: ”If you buy things you do not need, soon you will have to sell things you need.”
As you analyze your needs and wants, consider downsizing them. Do your own housework instead of employing a maid or a house helper. Keep food to the simplest and least costly but still nutritious. Lessen those eating out habits. By choosing a good but more reasonably priced school, you can cut on education costs.
Check your gadgets and appliances. Chances are you can sell some of them and perhaps even reduce your maintenance expenses. Do with one TV set instead of two. Sell your car and take public transportation. Move to a smaller place to reduce you rent and the need for some of your stuff. Sell your jewelry. Downgrade your mobile phone. There are a lot of ways to downsize.
If you want to achieve financial freedom. Then EARN MORE and DESIRE LESS.
It seems to me the biggest problem for most of us is the second part of your post--Desire Less. I know people who earn ten times what I do and they live month to month. I also know people who earn a lot less than me who always have what they need. They have figured out the trick to success with your financial health "live within your means". Great article @financialjerk. Thanks.
Thanks @bigpanda. People who earn a lot yet they live month to month are so-called 'one-day millionaires' . They are trapped by their income.
https://steemit.com/finance/@financialjerk/are-you-trapped-by-your-income
On the other hand, people who earn less yet they always have what they need are on their way to financial freedom. They just need to check on their spending habits from time to time when their income increases as they might fall into trap by their increasing income.