Updated: 5 days ago
"Seek wealth, not money or status. Wealth is having assets that earn while you sleep. Money is how we transfer time and wealth. Status is your place in the social hierarchy. " - Naval Ravikant
Money doesn’t buy happiness, but it does set you free. If you don’t have time to sacrifice hours for the cause, here are the 10 steps categorized in 3 stages, how to achieve financial freedom. (STABILIZING, BUILDING, GROWING)
STAGE -1 STABILIZING
1. Understand Rich vs Wealth
Stop trying to act rich. Mark Zuckerberg literally wears the same boring t-shirt and jeans every day. Blowing money on designer goods won’t get you anywhere except perhaps one person saying, “that’s nice.” Stick to being happy with what you already have.
“Being rich is having money; being wealthy is having time.” - Margaret Bonnano
Live well below your means. How did the wealthiest people in history live? They were allocating their money wisely and mastering a frugal lifestyle. It’s not as hard or difficult to become financially independent if you have an understanding of what it means. A lot of us think that we need expensive things in order for our lives to be happy — but this couldn’t be farther from reality. It’s actually quite rewarding to need less to be happy.
3. Pay yourself first.
This means putting a specific amount of money in your savings account before paying anything else, such as bills and living costs. This way you guarantee that you’re always putting money aside to invest in yourself rather than using what’s left.
“Governments don't want an intelligent population because people who can think critically can't be They want a public just smart enough to pay taxes and dumb enough to keep voting and electing corrupt politicians.” - George Carlin
4. Avoid/ clear debt
Clear all your debt. The feeling of relief after you pay off your debts is universal. It doesn’t matter how much debt there was or if the person has any cash on hand, they’ll feel like their financial situation has improved greatly when all that’s left are small bills. You’re not saving anything if you still have 20K debts hanging over your head. Prioritize these first, no matter how long it takes.
STAGE -2 BUILDING
5. Side Hustle
Start a side hustle. I can’t give you this idea, but what are you good at? What do people pay you for? Focus and channel the extra hours you do have in building that business. Invest in it, put your earnings from your 9–5 into growing that part of your life.
6. Remote Work
Work a remote (from home) job, so you can do your 9–5 whilst also working on your side hustle in-between those moments where you aren’t busy. Make sure you get everything done in your 9–5 so you’re highly valued in that business.
“In an age of infinite leverage, judgement is the most important skill.” - Naval Ravikant
Know this won’t happen overnight. You need to be consistently growing this side project, which means growing your social presence and building an audience. If you don’t see results right away, keep going until you do.
8. Budgeting and Tracking
Budget everything, look at money as a tool to help you achieve your dreams, not as something to spend. Create a daily budget tracker and stick to it day by day. What you save should be put back into your side hustle or investments only, you don’t need material things.
STAGE -3 GROWING
9. Multiple Income Streams
Find multiple income streams. Your 9–5 can be one, your side hustle can be another but find something else. The ideal is, wait for it, 7 sources of income. Which is hard but start small and build up. If you’re serious about financial freedom, you’ve got to sacrifice some blood, sweat, and tears.
“Salary is for expenses. Equity is wealth.” - Vala Afshar
10. Compounding of Investment
Start investing now. When the market is down, people often question whether it’s worth investing in stocks at all. But historically there’s never been a better time to invest. The magic of compound interest will grow your money exponentially over long periods if you just wait for them (and have some patience).
Thanks for reading…
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