The modern rules of financial freedom starts with a four steps process.
Build a business
Reinvest in your business
Invest in real estate
Let your assets buy luxuries
1.Build a business for financial success.
Building a business allows you to generate a lot of money.The United States tax laws are very favorable to people who earn their income from a business that they own.People who earn their income from jobs do not have favorable tax laws.
A business financial freedom takes time to grow.While it can take less time,and can cerainly take more,getting a business off the ground typically takes about five years.
2.The get your business the financial strength it needs,you must reinvest in your business.
The key to this process is that you don't try to use your business as an income source to live on. A lot of first-time marketers,authors,make this mistake. As soon as they start seeing an income stream develop from new business,they use that new income to expand their living expenses: buy a second car,buy a bigger house,take expensive vacations.They do it for one reason and one reason only: Their mindset is still 9-5 job,not the business owner.As a business owner who wants to build financial wealth you must think like a business owner,reinvest into your business.
Tip 1 keep your day job,Your goal is not to replace your job with your business-that's just treating your business like your new job.You'll never build financial wealth that way.Once your new business is making some money.
Tip 2 Reinvest your new income in that business in order to grow the business financial wealth.
If you put all the income out of your new business into monthly living expenses,then you're not building a business and you have no funds to market your new business.
Never stop investing and reinvesting to build financial wealth for your business.The reason so many people fail to achieve great wealth in any business is that they fail to reinvest continually in the business,marketing is and investment in your business.
3.Yes real estate is a good financial move.
As your business income continues to grow,you begin using that income to buy real estate.The idea is to use the new income to build an financial asset.Why real estate,the tax laws are written in favor of business owners who invest in real estate.The purpose of buying real estate is not to sell it;the purpose of buying real estate is to build an financial-generation asset.
The reason many people fail to become rich in real estate is that they don't have the cash it takes.If you don't have much money,often the only real estate deals you can get are deals that people with money have passed on.
4.Have assets-let them buy financial freedom.
How do you get that luxury? you let your financial asset strong business or your real estate holdings buy it for you and you can use the tax laws to deduct the cost.For that to happen,you have to build those financial assets to the point where they can buy it for you.
You don't use your income to buy yourself financial luxuries:You use your income to build your assets-your business and your investments and then,once they're built to be able to do so,you let them build your financial wealth.