FOUR KEYS TO FINANCIAL FREEDOM
Creating financial freedom isn’t complicated.
We’re taught from a very young age to give our power away. We’re taught from schools, from Wall Street, and from employers that we get a job and then blindly put our money into 401Ks hoping that it all works out.
This couldn’t be further from the truth.
In this article, we look at the path we call the Four Keys to Financial Freedom.
The one thing that you have to understand is that financial freedom is a process. See it as a puzzle – when you do a puzzle, you put all those pieces together. You go around and set up the exterior of the puzzle and then work your way in.
Financial freedom is just like a puzzle.
It’s like those pieces that when they’re lined up strategically and in the order they form a complete picture.
We call these the Four Keys to Financial Freedom.
No matter how good we are at one, if we’re weak in another, we’re going to end up coming up short on achieving our goals, especially if we want to accelerate our financial freedom as taught inside the game of Cashflow Tactics.
In 10 years or less, all four pieces of have to be working together.
PRODUCE – how we make money and how we create more in our life
PROTECT – how we keep the money that we’re making
PROFIT – which is how that then grows for us over time
PROSPER- which is what we call living wealthy
Unless our strategy connects all four of those concepts, we’re never going to be able to get what we want.
We have to look at and understand how we can create more inside our lives, and this starts with two main concepts.
The first is understanding and accepting what our greatest investment is. The world will tell you that real estate, options trading, and Bitcoin is the latest and greatest. Everything is focused on what is external to you because that creates a need or a role for the financial services industry, right?
We at Cashflow Tactics fundamentally understand and believe that you are your greatest asset and an investment in your skill sets, your mindset and your networks will be the best investment that you could ever possibly make.
This doesn’t refer to speculations but investments because you are showing up prepared, knowing what the investment is and how it fits into your financial plan. And this is a challenging paradigm to break because for all your years in school and in a typical job, you were taught that somebody else had the answers. You had learn from somebody else.
It’s all external, and we rarely do have elements of our life where we’re the driver behind it.
That’s exactly the paradigm shift that everything has to start with – understanding and learning that you need to become a producer and be in control of that.
Once we learn and understand this fundamental shift in thought, the second piece is that too many people build their financial plan on a house of cards, because again they’re focused on that external piece where they just need to be able to make more money. But if we can’t keep the money that we make then it’s all futile anyway.
None of it really matters.
It’s like filling a bucket with a hole in the bottom where everything we’re putting in is just running out. There are two main areas that we need to be aware of if we’re going to keep our money.
First off is the single greatest destroyer of wealth, our income taxes. We’ve got to figure out how we can pay less in taxes. It’s about understanding what the wealthy are doing because they follow a strategy where they reduce what they have to pay permanently, and they never pay tax on their investments.
That’s the strategy we need to be following.
We need to understand how we’re taxed as a business owner or an investor. Then after that, we need a place where we can put our money that keeps it safe. We call it a vault and this is where we want to put that capital so that it is protected from the typical destroyers of wealth. It needs to be protected from the IRS, inflation, creditors, and predators. Lastly, you have to protect yourself against market volatility.
The third element is growing our money or profit. This is probably where the investment industry spends the majority of its time.
There are all kinds of investment philosophies, strategies, schemes, and plots of people out there that are doing this and that, but at the end of the day growing your money is really simple.
Remember that you are always the number one asset. You should then find the very select few investments that will accelerate your returns while actually reducing your risk.
Once you’ve made money and you know how to keep it, you have a financial plan set up for freedom.
You need a way to grow your money positioned for cashflow, where it will then exceed your expenses as quickly as possible. Because if you’re not careful with it, you’re going to ride the rollercoaster of making money and then losing money. But when we add in the element of protection and then profit centered on cashflow, you’ll have a complete game plan with your money, and you’ll know what to do with the money that you made.
Very importantly, we’re trying to show you how all these ideas connect. If we follow strategies that we believe are going to produce us cashflow but ultimately end up requiring all of our time, we won’t be free.
There are lots of investments, strategies, and opportunities that I could follow, but if it required all of my time to the point that it threatened my ability to produce, my ability to run my business, my ability to stay focused in my job and be an asset there and make money, when really I’ve just replaced what I thought was an investment with a second job. It has to be a passive act.
This is where most people still miss the mark.
All our financial planning, for the most part, is set up with this differed mentality. One day you’ll have enough money, and you’ll be able to retire. But for most people, that day never comes, and when it does come, because they haven’t prepared for it, they live in scarcity.
We spend 40 or more years giving up the best opportunities, the best years, and the best experiences in the hope that we get a small chance to enjoy it.
What causes people the most pain is they’ve traded the best years of their life for wealth at the end of the tunnel. They’ve lost their health, their connection with God, and their connection with their family. All of this in the process of trying to build wealth as they’ve traded more and more time, hoping that one day they’ll have enough. People need to understand that that’s not the objective. It’s not having this big pot of gold at the end of the rainbow. It’s living wealthy on the journey towards financial freedom,
Financial freedom is about having control over your time and then utilizing that time in the most effective way possible for the rest of your life, not just at retirement.
The real aim behind this all is to live free every day, having control over your most important, most valuable resource – your time.
As you can see, there are four elements to the puzzle here. It’s knowing how to make money – producing. It’s knowing how to keep the money that you’re making – protecting. It’s knowing how to grow that money in a focused way that works financial freedom and profit. And then the last one, prosper.
When you link up these four elements, you have a complete puzzle, a holistic picture of what wealth really is. Not just financially but in life itself.
If you’d like to find out more about how we apply the financial freedom formula to your life, then click on this link where you will see the next step in your journey towards financial freedom. You can always subscribe to our channel so we can give you the best of the content that we have to help you continue on your own journey.
Rise up. Live free.