Here are 21 ways to compress the distance from where you are now to financial freedom. I wrote this list specifically for my new friend Don M. but this is some pretty good timeless advice I’d like to share with you.
1) earn more / save more
2) spend less – thus reducing the amount of passive income you need to become financially free
3) start a business parallel to your W-2 so you can: earn – spend – tax rather than the w-2 trap of earn – tax – spend
4) use leverage to create positive arbitrage
5) leverage other people’s time / other people’s knowledge / other people’s relationships / other people’s money / other people’s deal flow
6) be a market cycle investor – buy in a buyer’s market / sell in a seller’s market
7) lower your income tax burden using IRAs / 1031 exchange / long term capital gains rather than ordinary income / HSAs / s-corp tax status to lower self-employment status
8) Be a lifelong learner – study at www.HassleFreeCashflowInvesting.com
9) work with a financial mentor who is financially free
10) invest and work for what the investment and the job will teach you
11) invest in relationships
12) getting rich slow is better than trying to get rich quick and never getting there
13) there will never be a perfect time to launch – take action then make course corrections as you go
14) embrace failure as an opportunity to grow
15) write down your long term goals and your daily to do lists
16) write down your compelling “why”
17) schedule your day and your life – live life by design
18) use your time in your vehicle for studying audio programs
19) protect yourself from negative people and negative environments
20) include your spouse in your financial education and goal setting and dream building
21) get around people who think radically different than you – spending time with “like minded” people is a recipe for producing results you already have – you will become the sum of the people you associate with
(IN THE COMMENTS PLEASE ADD YOUR OWN ADVICE FOR DON WHO IS A WORKING PROFESSIONAL WHO REALIZED AT AGE 24 HOW HARD IT IS TO GET OUT OF THE RAT RACE)
Play the cash flow board game to experience getting out of the rat race.
Great advice. Better to start before you’re ready than wait until you “feel” that you are (the day won’t come!).
When investing to get out of the rat race:
Learn to tell the difference between investing and gambling – cash flow first.
Know your precise level of risk tolerance and do not self-justify exceptions.
Always have multiple exit strategy if either of the above conditions should occur.
Don,
Remember, Success is a Journey, Not a Destination.
Great post indeed !21 ways are really helpful and easy to understand .A big thanks for sharing this with us 🙂
Anyone wanting to see success with investing could benefit from reading this post. Good advice David.
The right way to educate your self before investing. Better to start before you’re ready than wait until you “feel” that you are (the day won’t come!).
Very useful and encouraging article; after 5 years working as a real estate photographer and observing agents, I myself have become interested in investing.
Thanks for the tips.
I’m already utilizing some of them.
Trying to figure out how to implement the rest.
22. Brains storm and Research new investment ideas.