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The critical factors for financial freedom

Updated on August 10, 2016

Enough of your 9 to 5 job?

Nowadays I get more and more people that are tired of their 9 to 5 job and who are tired to rotate in the rat race. A race that consists of getting up early, standing in traffic jams and working hard for a medium to low salary, for a boss or company who reaps most of the gain (or shareholders).

We work for years in a job that usually does not comply with our greatest passion, so we when we are 65 or 67 years are finally able to enjoy our well-deserved retirement. A pension that can not even be guaranteed, as there might topple banks and pension authorities or go bankrupt. We imagine so dependent on and we put our fate in the hands of an employer, the government and pension organizations, in order to enjoy possible when we retire.

It is high time to change this to!

Step out of the rat race!

Take your destiny into your own hands and get out of the rat race! It is madness to let define your life by an employer, the government or a pension organization.

They will not help you if something goes wrong. Only you can help yourself by doing what you're doing here on this earth, and by working towards your financial freedom.

Financial freedom is for everyone! By working on your mindset in terms of money, wealth and abundance and by working on the factors mentioned here incompetent for financial freedom can lead everyone to free life. A life where you can make money with your passion and where you choose what you do with your time, with whom you spend your time and where in the world you want to do that.

The five critical factors that lead to financial freedom are:

1. Increase Revenue

There are many ways you can increase your revenue. For example if you have a monthly cash deficit to pay your bills, you can do two things. increase your income or decrease your expenses. To reduce your spending is a limit, you can not save more further at a minimum level.

With your income, this is different. You can always try to find better paying job, or a job accompaniments. You can also increase your income by working as a freelancer at a certain hourly rate by you. The downside is that you're still bound by the 40 to 60 hours you have each week. The best way to increase your income is to start a business where you have no limit to your earnings. The more you sell, the higher your income!

2. Simplify

A second factor to achieve financial freedom is to reduce your expenses or have to simplify your life. The less you spend, the more you have left to save or invest.

Expenditure with a high savings potential include: insurance, gas and electricity, telephony and internet services and your housing costs. By comparing several options and providers can often realize immediate substantial savings.

What also helps is to ask yourself each time you want to buy something: "Do I really need this?" Whenever you are reading this note at the checkout. You can still decide whether to discharge silly purchases and leave the impulse bins stand at the checkout.

3. Save

I advise you to save minimal 10% every month and make reservations for your financial freedom. Never more here! This is your game for you financial freedom.

Later, you can live your interest, you can still make another assessment and pay yourself interest. You can add this to 10% if your savings on your spending. Also, it is advisable to build a piggy bank for multiple purposes, so that your calamities do not have to relish the financial freedom jar.

4. Investing

There are many ways to invest your money, so you can get high returns.You can invest money in stocks, funds, or in the Forex market in order to achieve a higher return than a regular savings account. Make sure that you follow a good course with clear strategies, and practice thus first in a test environment before you invest real money. One of the most important things in investing is a clear risk! Other examples of investments include: real estate, gold and precious metals, ETFs, art, tax liens, etc. Again, do good research, knowledge of having affairs, have a clear strategy and do risk management.

5. Passive Income

Income without having to actively work are called passive income.The purpose of the money game is to earn enough passive income so you can pay your desired lifestyle.Passive income include income from investments, such as interest, dividend growth, etc., but also other things such as: network marketing, sales from vending machines, selling books and CDs, subscriptions, phone apps, revenue from domain names, internet marketing systems, blogging ,etc.You have this one-off set up and then the revenues continue to come automatically.

Most forms of passive income are not 100% passive, you must sometimes commit a few hours a week for maintenance. But who cares? It is always better than a 9 to 5 job!

Give yourself all the five factors once a number from 1 to 10. What critical factors for financial freedom can you improve? And what are you gonna do about it? Want to know more about the escape from the rat race and how to become financially free?

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