In the first episode of the podcast, Ryan, Jimmy, and Brad shared how they first met each other. They talked about the immediate connection they all felt, how they were walking the same path and how everything seemed to click. Well, this is one of the results of that clicking.
Introducing the financial freedom formula. To an untrained eye, it may look a little intimidating but once they break it down, you’re going to realize just how simple it actually is. This is the framework that will help you make smart decisions on your way to achieving financial freedom in the next 10 years.
So let’s dig into it, shall we?
The Biggest Deception of Traditional Financial Planning
Before we dive into the components of the financial freedom formula, we should reflect a little on the limitations of traditional financial planning. After all, being frustrated with the same old, outdated and ineffective financial advice is what led the guys to create CashFlow Tactics in the first place.
The reason why traditional financial planning is borderline ridiculous in this day and age comes from the fact it doesn’t offer a clear goal. There is no target for success. Sticking to the “someday game” of the 4% rule is irresponsible at this point.
The financial freedom formula has a precise objective and it’s in the title. It defines the essential parameters that influence and determine your ability to achieve financial freedom, which. if you remember from the previous episode, we’ve defined as “cashflow greater than expenses”.
But there’s one more thing we need before we get started, and that is a timeframe. A goal without a timeframe is nothing more than wishful thinking. And based on their personal experiences and calculations Ryan, Jimmy, and Brad have made it a part of their company’s mission.
“Our mission is to help you be financially free in 10 years or less.” – Ryan D. Lee
That’s why Ryan, Brad, and Jimmy prepared a FREE 5-day Challenge, which helps you develop a brand new mindset that will fire up your journey to financial freedom.
The Key Components of the Financial Freedom Formula
Now that we have a clear goal of what we’re looking to achieve and in what time, we can focus on the things that will get us there. We’re going to go over every single piece of the formula, step by step, and we’re going to start off by breaking down the first set of what we call “wealth lenses”.
The Core 4 Tool
When stepping into the world of investment, the majority of people is simply following the crowd and hoping they’ll come across a hot tip that will change their life. And of course, when you get burned a few times, you realize that it’s never going to happen.
You have to learn to make these types of decisions yourself and that’s what Rise Up Live Free is all about. Analyze your investment opportunities and determine if they have all the necessary characteristics that will make it worth your while.
The first tool of the Financial Freedom Formula is based on 4 core principles that allow you to ask yourself crucial questions and assess any individual investment opportunity:
- Increase Your Return
- Increase Your Control
- Decrease Your Risk
- Decrease Your Tax
The 4 Pillars of Investment
Once you know what to look for you need to know where to look at, which is the second wealth lense of the equation. You need to understand what these pillar assets are because every investment has the potential to make money in 4 different ways.
- Tax Deductions
The optimal way to achieving financial freedom if you are able to invest in assets that have all of these 4 characteristics. That’s the real tricky part but it’s also something that will be a topic in upcoming episodes of the podcast.
Velocitizing Your Money – The Final Component of the Financial Freedom Formula
The very last bit of the formula holds the key to speeding up your progress. It’s all about the speed by which you are able to move your money from one asset to the next.
“Velocity is about you stepping into the game, moving your money and doing something about it.” Ryan D. Lee
The revolutionary thing about this concept is that it goes against everything that financial advisors preach. Traditional financial planning teaches pilling away money and stacking interest. But there is no financial freedom if your money is stuck, regardless of it being in a 401k or in the equity of your home.
By moving your money from one asset into another, you’ll velocities your money and increase the speed of your financial progress. It’s as simple as that. You just have to take action.
Ryan, Jimmy, and Brad have come up with a formula that clearly distances them from financial advisors. They don’t offer advice, they don’t tell anyone what they do with their money. When people come to them for help, they simply point them into the direction of the financial formula. So if you’re thinking about making an investment ask yourself – what’s is your core four and four pillars score?
If you’d like some more guidance on how to use our formula to pick investments that grant you financial freedom 10 years from now, then our free 5-day challenge is something you don’t want to miss.
? Join the FREE 5-day CashFlow Tactics Challenge Here!
The path is laid out in front of you, you just have to walk it.