The last base, but also the beginning, the beginning of the path, consists in knowing and mastering the pillars of financial freedom.
It is now time to return to these in more detail.
MAKE MONEY WORK FOR YOURSELF
Let’s start by recalling the best way to achieve financial freedom.
Becoming financially free means you are no longer trading your precious time for money. You exchange its true value for money.
Contrary to what some would have us believe, this is not an impossible mission, thanks to the 4 pillars, often called the pillars of financial freedom 🙂
THE 4 PILLARS OF FINANCIAL FREEDOM TO INCREASE YOUR INCOME WITHOUT WORKING MORE
Often, when we think about earning more money, we imagine that the only way to achieve it is to work more (the fault of Sarko 😉 ).
But there are different ways you can increase your income without having to work more!
This is for example the case of those who own real estate or who have invested in the stock market.
This money has made small, without you needing to work. Unless you are an active trader and, in this case, you manage your portfolio on a daily basis. But if you’re doing it for fun, for passion, then I guess you don’t consider it work.
The 4 pillars of financial freedom are:
- 1. Real Estate
- 2. Financial markets
- 3. Business online = via the Internet
- 4. Physical Business
The income you earn from these businesses does not depend on the time you spend developing them. These are called passive businesses .
EXAMPLES OF PASSIVE BUSINESS: YOUR REMUNERATION DOES NOT DEPEND ON THE TIME SPENT ON THEM
- Real estate: You rent a studio to students. This studio earns you monthly rent.
Whether you spend a week finding tenants, or no hours as everything is settled like clockwork, the rents paid to you are not based on those hours, but rather based on arate of return. - Financial markets: When you invest in the stock market, you can spend days without issuing any buy or sell order or, on the contrary, you can devote entire hours to it. The income generated by the financial markets does not depend on the hours you spend studying the different markets and companies to know what to bet on.
- Online business: There are several types of online business, such as partnerships with Amazon or “dropshipping”. You can also create your own store on the Internet and sell your digital books (Ebooks), coaching sessions or any other type of product.
- The physical business: unlike the online business, this one generally requires inventory management and has higher costs, if it is not a question of services. If you are selling services then less inventory management to consider. And it’s your value you’re selling, your value, not your time.
Thus, entrepreneurship is the greatest form of financial freedom.
For these 4 forms of investment, we realize that money is indeed a concept decorrelated from time. It is therefore possible, to earn more, not necessarily to work more!
TRAINING: ONE OF THE KEYS TO SUCCESS
On the other hand, it will take time to master these different pillars if you want to be sure of winning. This is why it is important to… get trained !
Indeed, before starting, it is important:
- To establish its strategy
- To know the area in which we are going to invest, whether it is real estate, the stock market or the internet.
It is often when learning that we lose the battle. Lack of time, impatience, the feeling that we are not moving forward are often reasons that make us give up, we tend to give up. Unfortunately, this phase is essential to avoid repeating the most common mistakes, learn the strategies of the best and in turn succeed in our investments.
Learning and having enough knowledge can limit the risks.
This is where you realize that work and passion go hand in hand : if you already work in real estate and you like it, then you are in luck, because you have surely already acquired many skills that allowed you to invest in profitable business.
If you work in the field of financial markets, you surely already have shares, which you manage, perhaps more or less from afar and which bring you back.
Otherwise, for those who are like me, know nothing about real estate (my first purchase turned out to be a disaster in terms of long-term enrichment) or the stock market, well, you have to start from scratch.
WILLPOWER, DETERMINATION AND SELF-DISCIPLINE
Again they are back! Because yes, we will have to arm ourselves with these 3 ingredients to manage to bring out something from our learning and invest intelligently.
I reveal to you here, the pillars on which I decided to invest, as part of my strategy:
- In financial markets, and more specifically in trackers.
- In the real estate. But not being in USA now, this part may be more complicated.
- As well as in crowdlending.
CONCLUSION – LEARNING OF THE WEEK #5
Yes, it is possible to become financially free. Yes, it is possible to make money work for us, rather than working for money. Some of you are already doing it, without even knowing that it was this concept that was hiding behind it!
Whether you have one or more properties that bring you income through rents, whether you have shares on the stock market, whether you manage or not, without knowing it, you are already on the road to financial freedom. Because this money invested was good to earn more than your salary, right?
Here is some good news
A downside however, by quickly studying these different businesses, what is most striking are the risks they entail. You can lose more or less big, especially depending on the period in which you invest.
This is for me the real learning of week 5, to really get rich, in the long term, you have to take risks, sometimes very big! And you also have to think long term to limit these risks.
This is why before starting, you must have a well-established strategy, with an action plan that results from it and then a (more or less long) training period.
