There are numerous routes to financial freedom. If achieving financial freedom is at the front of your mind, it is imperative for you to understand that there is no precise formula to it.
The key is to first calibrate your mindset. Then, fine-tune your actions and choices to find a balance which suits you best.
Once you have this balance, it means that you now have your personal formula to financial freedom. Subject to further calibrations along the way, you could place the pursuit of it at the back of your mind.
This is to focus your energies on the process and keep going. Rather than dwelling on thoughts like “I want to be financially free!” or reading about it, turn your visions into motion.
While it is by no means a walk in the park, it is also not an unconquerable mountain. May this roadmap provide you with both a comprehensive understanding of the subject, as well as equip you with ideas on practical actions that you could start experimenting with.
Presented below are the highlights of this series on the Road To Financial Freedom. These have been written chronologically. If you find yourself unable to connect the dots somehow, it will help to (re)visit the earlier parts.
Enjoy the journey and see you in our next series!
Part 1: The first step – how to get started on your road to financial freedom
What to learn how someone who has achieved financial freedom did it?
We began this series by exploring the initial motivations and evolution of the road which Collin took on his journey. We identified that financial freedom could be a conscious goal or a by-product of processes.
Either way, the key is to rid yourself of any limiting-beliefs and half-hearted attempts. If “life happens” and steps towards financial freedom get thwarted, then perhaps it is time to inspect how strong the motivation was in the first place.
So, the first step is to frame your mind. Take charge of your finances and have faith in the process.
Check out part 1 here.
Part 2: Hatching a game plan to conquer financial freedom
Before all else, we start by devising the game plan in the conquest of financial freedom.
We looked at various definitions of financial freedom in order to know what exactly the game’s objective is. Though it turns out that there isn’t actually one universal definition of financial freedom.
Next up, the concept of levelling up. The game of financial freedom can be broken down to 8 levels, which serve as progressive checkpoints. Or, if you would, an encouragement that you are making progress.
In terms of the game play, we established an understanding that our funds are like water. It is up to us to channel it, or have multiple streams to bring the supply in. A simple principle to achieving financial freedom, would be to reduce expenses and increase income.
This sets the stage for the subsequent 3 parts.
But first, read about part 2 here.
Part 3: 3 actionable thoughts to slash your expenses
On a different end of the spectrum of financial freedom, is the rat race. We took a quick peek at one such presentation. A version which involved retail therapy as a drug and wanting to impress onlookers with material luxuries.
Here, we identified mindful spending as the key to overcoming the continent of outflows. Instead of thinking how to save money, think of how to spend less.
When it comes to expenses, we tackled 3 main aspects of “why”, “what” and “when”. Justify the reason behind the cost, choose quality over quantity, and practice delayed gratification.
As a bonus, we addressed the “how and where” too. That is, research first, and execute second.
Lastly, when it comes to “who”, it is up to you – the protagonist of your life story and main player in the conquest of financial freedom.
Even as you work on reducing expenses, don’t forget to enjoy the game.
More on part 3 here.
Part 4: 7 ways to earn passive income in 2021
This is probably your favourite topic in the whole financial freedom series. After all, passive income seems to imply that there is little to no effort required, and the money will just keep rolling in.
While that is not wrong, that is only the latter half of the picture. First, one must lay the groundwork…
Nonetheless, there is no lack of means to build multiple sources of passive income. We lay out 7 ways, ranging from the most basic level of savings to a build-up on long-term savings, and eventually investments.
Other potentially more labour or time-intensive ways include investing in property, affiliate marketing, and creating your own intellectual property.
The last method is perhaps the most contemporary one – staking cryptocurrency. For those who are into alternate investments, this could very well be a lucrative method to increase your passive income.
Although there are 7 ways stated in the article, there is no reason why this should be the limit.
Check out the details in part 4 here.
Part 5: 3 ways to increase your active income in 2021
At first glance, you might think this is about taking up another 8-hour job. But I assure you, it is definitely not that.
The main point is to gain the know-how. In terms of trading the stock market actively, having a side hustle that you are passionate in, or perhaps having a co-living business (rent-to-rent model).
What to know how these work? Then check the article out via the link at the end of this section.
Don’t limit your options by your knowledge. In fact, it is the often the exposure to something new which opens our eyes to related occurrences. While there could be plenty of missed opportunities, there is also wisdom in the saying it is better late than never.
Be active, check out part 5 here.
Part 6: 3 strategies for wealth protection in Singapore
In most situations, we do not actively seek wealth protection. Perhaps it is optimism, or a survival mode kind of instinct which makes us more attuned to wealth generation.
Yet there is good reason why keeping is said to be harder than winning.
It is simply not holistic to mind your expenses, grow your wealth by passive and active means, only to fall prey to the leaks in your wealth protection plan. That wouldn’t be financial freedom at all.
The 3 strategies in this article are diverse. The aim is to broadly cover the topics of your trading portfolio (especially hedging), term insurance (as opposed to life insurance), and medical insurance (so you are well shielded from enormous hospital bills).
If you can’t handle all 3, then perhaps just start with 1. Better to have some protection than none at all.
Read up on part 6 here to see if you’re all covered.
Part 7: 2 keys for reinvesting in yourself
Remember, money is a tool. It is up to you, the steward, to use this tool well.
While you can definitely think of reinvesting in a financial sense, it is of no less importance to reinvest in yourself. Rather than profiting in a monetary sense, it is about how enriched life would be.
On that note, the areas of reinvestment that would reap the best rewards, would be education/skills, as well as experiences.
By education, it is more than a paper chase – it is also about continuous learning and upskilling. After all, education gives you the best form of leverage. Remember how we mentioned to first gain the know-how when it comes to increasing your active income?
When it comes to experiences, there seems to be less resistance towards this idea. Yes, you would know what I mean when we talk about travelling. I doubt I need to elaborate on this. Suffice to say, travelling and gaining new experiences is one of the few things which you spend on, yet makes you richer.
Wouldn’t you agree that these enrich your life?
Discover more about reinvesting in yourself in part 6 here.
Part 8: Giving leads to the conquest of financial freedom
Last but not least, is fundamentally the most challenging article in this series. (Click here to read.)
How much meaning do our lives have, if we are not living for more than just our immediate needs? Or for that matter, for nothing more than to provide for our loved ones?
This article challenges your beliefs and understanding. It goes beyond the physical laws that we are taught in school. This is important because what you believe certainly affects how you act.
At the risk of sounding spiritual, we touch on 3 different laws which are all tied to the belief in and the act of giving. These are the law of giving and receiving, the law of attraction, and the law of abundance.
We have identified much earlier on that our funds are like water. It is up to you to channel your funds accordingly. However, rather than seeing it as rainwater which comes and goes, collecting and hoarding every drop that falls… See it as a gushing, never-ending river.
When you give, you will have more to give. Going back full circle, rid yourself of a poverty mindset and any limiting-beliefs.
At the end of the day, the conquest of financial freedom should not be a means to an end. It is also about discovery, growth, and meaning.
A journey, that can either be a pipe dream, or an eventuality waiting to happen.
Thank you for reading and following us throughout this conquest. Meanwhile, we are working on more value-adding content to bring to you in the next series. See you there!
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