9 Steps to Achieve Financial Freedom Fast
Attaining the status of financial freedom is key to enjoying a happy financial life. Learn practical ways to achieve financial freedom fast.
Have you ever thought about walking into the mall or going on a vacation with your family without having to worry about a budget? Maybe you have always dreamt about retiring from your 9 to 5 and spending the rest of your life traveling the world and tasting the best Italian dishes. That is wonderful, right?
You just want to live a life of abundance but then your bank account says something else, “Stop dreaming,it is impossible!” Ouch! I was once in this situation.
As a young small business owner, I always wanted to be financially free and independent. I wasn't the “asking” type, so I didn't want to keep asking the bank for loans, meeting with friends and begging for their support. Yet, there were so many bills to pay, so I didn't have a choice.
It seemed like with every $100 income I made, 90% of it goes right into paying bills. I had almost no savings, no investments, and no guarantee for a financially free future. My future was uncertain, and it was frustrating. I'm pretty sure it is for you too.
Well, fortunately, I was able to get out of that hot mess. And, in this article, I will show you tested and proven ways on how you too can do just that.
What is Financial Freedom?
Financial freedom simply means being able to take care of any financial obligations – expenses, needs and wants – without having to worry about incurring any impending loss or debt, majorly because you have more than enough savings and investments to get you through. When you are financially free, money works for you.
According to Robert Kiyosaki, the author of ‘ Rich Dad, Poor Dad', “The poor and middle-class work for money. The rich have money to work for them.” When money works for you, you are no longer in the Rat Race but now in the Fast Track.
Although Financial Freedom and Financial Independence are used interchangeably, they are quite different.
While Financial Freedom means being able to have total control over your money, Financial Independence means being able to take care of all your needs and financial obligations without being dependent on any other person for assistance. It means you, and only you, are able to take full responsibility for your financial actions.
The reality of Financial freedom is an ongoing struggle. A recent study carried out on the financial strength of Americans showed that over 70% of Americans are not financially free. And only 29% of Americans are financially healthy.
This is one of the major causes of the fear of retirement. Apparently, most Americans have spent a majority of their lives working with little financial security for life after retirement. So when they finally retire, they are still caught up in the Rat Race.
A financial expert, Jim Wang, revealed that one of the best ways to get money to work for you, and set you on your path to financial freedom, is to have multiple streams of income which can be classified as passive income.
What is Passive Income?
According to Wikipedia, Passive Income is the income that requires no effort to earn and maintain. So maybe, as a business owner, you have a business you are so passionate about, you can still have another source of income that doesn't necessarily require your whole attention. It's just you making money in your sleep.
We would discuss this later in the article, where you would see a variety of profitable passive income examples you can pick up while still being actively involved in your business.
Going back to Financial freedom, you are probably thinking that it is quite impossible to be financially free especially with all the bills and debts you have to pay. Maybe you haven't finished paying your student loan yet and the bank is calling you and sending tons of emails.
Wait! Before you wallow down into the black hole, let me just say that it is absolutely POSSIBLE to be financially free and independent. There are practical steps to guide you through this path and take you right to your destination.
But first, you have to do the same thing I did and that is deciding within yourself that you are going to take this journey without looking back.
Okay, are you ready? Let's start.
How To Achieve Financial Freedom Fast (Step-by-step Guide)
1. Clarify Your Life and Financial Goals (and Write Them Down)
The first step to take if you want to be financially free is to be clear on the goals you want to achieve.
Financial goals are specific financial targets you set to achieve over a period of time
But getting them down on paper is just the second phase. The first phase is being clear about your goals – in your general life and your financial life.
Here is how to be clear about your goals,
Be Clear to Yourself
Be clear about what motivates your financial decisions. You have to figure out what matters to you. Most of our decisions in life are influenced by situations around us. They could be physical or psychological.
Ask yourself ” What Do I really want to achieve? What is my motivation for achieving this?” Be specific with your answer. This exercise is really personal because it requires some honesty.
Decide If Your Goals Are Long-Term or Short-Term
Your goals should have a timeframe in order to be achievable and effective.
Where do you see yourself financially, in the long-run (5 – 10 years)? What do you want to achieve in the short-term (3-6 months, 1-2 years)? All this information is very important when it comes to setting clear goals.
Write Them Down
Maybe your goal is to own a house of your own at the top of town, or finally pay off that debt that never seems to end, or save up to over a million dollars before retirement; whatever your goal is you have to be really clear about it and write it down.
Writing down your goals makes them look easier to achieve.
When I was still starting up as a small business owner, I always wrote my goals on sticky notes and pasted them on my vision board. Whenever I felt like giving up, I would look at my vision board (I had a lot of sticky notes on it) and stare at where I wrote my financial goal for the next five years. It seemed impossible to achieve at that time but staring at it everyday gave me hope.
Break Them Down
This one is specifically for the mid-term/long term goals. Your financial goal doesn't have to be an impossible burden. It must not be achieved at once. In fact, breaking long term goals into small achievable short term goals makes the long term goal seem more possible.
For example, let's say you want to pay off a mortgage debt of $4,000, you break down your goal into smaller achievable portions. You can say ” My monthly goal is to pay $100 off my mortgage debt”. When you are clear about this, everything will fall into place.
It is important to know how to set financial goals especially as a small business owner.
A goal without a strategy is just a wish. You have to pen down how you want to achieve this goal, the steps you want to take to make sure that your goals become your reality.
Keep in mind that your strategies are not permanent. They can change with time to suit the situation at hand. Map out possible plans.
By doing the above steps, you would create a clear financial goal that would set you on your path to financial freedom.
Having a clear goal keeps you from getting distracted and confused. A goal is the compass that maps out your life's journey for you.
2. Commit to Frugal Lifestyle and Create a Strategy for Short-Term Savings
If you want to save more money, you have to know how to spend less. Being frugal means being economical with money, food, or other expenses.
In other words, frugality means being intentional about your spending habits, prioritizing only the things that matter most to you, and spending less.
As you are starting your journey to financial freedom, you have to be frugal in your living habits. It is the highest form of self control.
Ever wondered why frugality is one of Amazon's Leadership Principles? It's because constraints breed resourcefulness, self-sufficiency, and invention.
No, I'm not saying that you should live like a pauper. But you should only prioritize the most important things in your life.
Resist the urge to engage in flattery temptations.
How To Live A Frugal Lifestyle
Frugality is one of the most effective steps to becoming financially free fast.
As a business owner, surely there are temptations to spend your income on some flashy things just to feel good about yourself.
Over 95% of our purchases are based on emotions, then we try to justify them later with logic.
Because humans are emotional beings, mastering a frugal lifestyle can be quite difficult but it isn't impossible.
Create A Budget
Studies show that 65% of Americans do not have a financial budget.
A budget is a financial plan which includes all your estimated income and expenses within a period of time, usually for a month or a year.
Creating a budget should be at the top of your to-do list at the beginning of every month. You can create a budget in 5 easy steps:
Write down your total income per month
This involves calculating your total monthly income from all your income sources.
Break down your expenses
Break down your monthly expenses into three categories: Fixed expenses (e.g. Electricity bills, phone bills, water bills, tax, employee salary); Variable expenses (e.g. groceries, entertainment, daily spending); Miscellaneous expenses (e.g maintenance repairs at home, car repairs, gas, health-care).
Add an extra category
Create an additional category for savings and investments. It would help you determine how much you save and invest each month.
Distribute your income
Determine what percentages (%) of your income you want to allocate to each category. For example, 20% would be for variable expenses.
Use a budgeting app
After gathering all the necessary information you need, use a budgeting app or software, like Mint or Wally, to easily create your budget.
With a budget, you can track down all your estimated expenses and list them according to their level of importance.
If you want to control money, you have to manage money.
Be Comfortable With Some Discomfort
Yes, you heard right. Life is not naturally a bed of roses. If you want to live comfortably in the future, you have to get comfortable with being uncomfortable now.
I call this one the “opportunity cost approach”, because you are sacrificing your present comfort for a more comfortable future.
Let's look at it this way, you are saving up for a better, more comfortable, financially independent future filled with abundance and wealth.
However, you don't have to do this every single time. For example, instead of driving to the gym every Saturday, you can jog. That way you burn more calories and save more money you could have spent on gas.
Killing two birds with one stone, right?
Sell Things You Don't Need
Stop storing junk! If you don't need it, sell it!! I am talking about those things you do not need but still have. For example, your old gadgets, toys, old furniture (you are no longer using).
I know you are probably thinking “I may still use it. I don't want to let it go just yet. It's so beautiful.”
Yes, it looks fancy and pretty. But do you really need it? No! So sell it!
There are lots of amazing buy & sell sites to sell your stuff, like eBay, Facebook Marketplace or Letgo. Or you could go the old-fashioned way and start a garage sale.
There would always be a buyer, someone who wants what you are selling. So why don't you sell those unnecessary things and make more money.
Live On A Budget
After creating your monthly budget, stick with it. Resist the temptation to spend.
The goal is to spend less and save more. So your concentration should be on paying all your debts and living debt free.
Frugality is all about prioritizing the most important things you care about. Do not live above your budget.
Create a Short-Term Savings Account (you can't access easily)
You need to create a short-term savings account where you can save up for your short-term goals.
A short-term goal is any goal set to be achieved within a period of 5 years or less. So if your goal is to buy a car in less than 5 years, that is a short-term goal.
Creating a short-term savings strategy is an effective way to store up emergency funds and prepare you, financially, for the nearest future.
Aside from opening a short-term savings account at the bank, there are other online-savings platforms that offer professional services and help you manage your finances effectively, like Axos Bank, and nbkc bank.
These online-savings platforms would ensure you don't have access to the money in it till the agreed time is up.
Living a frugal lifestyle and having a short-term savings account is a big step to financial independence.
3. Develop a High-Income Skill That Helps You Earn $10,000+ per Month
In the previous step, I showed you how to spend less. Now, this step would show you how to earn more.
Financial freedom is not a get-rich-quick strategy. You have to put in time and effort and that includes improving on yourself.
Hear this! The most common yearly income of Americans is $61,000.
This means that if you want to live a future of abundance and prosperity, you have to develop a high-income skill.
High-income skills are skills you possess that can fetch you a high amount of money.
Fortunately, high-income skills can be learnt and developed. There are available sites that can help you develop high-income skills, with the most being Skillshare.
There are a ton of high-income skills you can choose from.
Search Engine Optimization (SEO) is in high demand especially among companies with an online presence. A lot of business owners are vying for customer's attention. That is where the power of good SEO comes in.
Being an SEO consultant is a good way to help businesses get organic viewers to their websites, blogs or social media handles.
You will agree with me that almost all businesses now have gone digital.
Why? Because this is the digital age. Over 40% of the world's population are online.
Although almost all businesses have gone digital, not all of them know how to market in the digital world.
Some digital marketing skills include:
- Email Marketing
- Social Media Content Creation
- Content Writing (which is different from copywriting. Copywriting some to persuade to buy or take action, while Content Writing aim to educate and provide information)
Website Coding and Development
This is a technical skill, and a very valuable one at that. In fact, Website coders and developers are in very high demand, especially as the tech industry keeps getting stronger.
Web developers build the backbone of the websites.
The good news is: Anyone can learn to code! You do not need a degree in computer science to be an excellent website developer or coder.
You can start by enrolling for an online course in coding. Codecademy is a great site to learn how to code.
The average salary of a newbie website developer, per client, is over $6,400 ( that is a good start. For an expert website developer, it is about $11,000.
Now, imagine having over 3 clients in a month. That is a whole lot of money!
Graphic designers are in charge of creating the visual elements of a company's advertisements.
If you are great at drawing or designing, this is a great skill to get into.
You will be in charge of creating beautiful logos and banners, designing billboards and posters.
The hourly salary of a newbie graphic designer is around $24/hr.
These skills do not require a degree to start. So you can start.
The best part about these high income skills is that you can work as a freelancer. So you do not need to join any agency before earning good money. Become a freelancer and start getting clients.
Developing High Income Skills
Now you have chosen the high-income skill you want to learn, you need to develop your skills so that with time, you would become one of the best in your field.
Reading business books would help you broaden your knowledge on your skill, open your mind to more creative ideas, and help you go beyond your limit.
This also includes articles, blog posts and any other written information that concerns your skill.
You get the opportunity to meet other people – experts and newbies – who are also in the same skill as you. That is a great way to network and get help
Watch vlogs and YouTube
Watching vlogs and YouTube videos that concern your skill would help you grow your knowledge and develop yourself.
You can get to watch a lot of videos and see experts give advice on your skill market
The best way to learn something is by actually doing it. Dedicate some time and effort and put yourself out there.
As a freelancer, you could get jobs from online platforms like Fiverr, Upwork, Flexjobs, Solid Gigs.
Having a high-income skill and becoming an expert in it, is an added way of getting financial independence.
4. Diversify Your Income Streams: Start a Business That Earns You Passive Income
Aside from your high-income skill, you need another source of income. Earlier in the article, I explained what passive income is. We are back again!
Passive Income is a must-have for every financially free person, because it's a great way to secure wealth for the future.
Okay, I'm about to show you something incredible! See this!
The effects of the Covid-19 crisis led to a rise in unemployment and poverty. But then again, it also led to the rise of more multimillionaires and billionaires like Jeff Bezos, Elon Musk, Kim Kardashian, and Bernard Arnault.
Do you know why?
Because they had passive income. While the whole world was on lockdown and some couldn't go to work, these people were still making steady money.
The common feature about all of them is that they had passive income.
Fortunately, there are a range of businesses you could start that would earn you high-level passive income.
Venture Into Real Estate
The real estate market is steadily increasing with a current worth of $36.2 trillion, in the U.S alone.
Real estate business deals with the buying, selling, management, or investment of real estate properties.
About 71% of American millionaires are involved in real estate. You too can also get into real estate.
- Conduct an in-depth research of the type of real estate you want to get into. Is it buying, selling, management or investment?
- Identify the niche you want to get into. It could be 5-star hotels, resorts, apartments, shopping complexes, etc.
- Set up a plan on how you would get investors and buyers.
One of the best ways to get a good passive income in the real estate business is through property rentals and real estate investments.
Here, you directly own properties and lease it out to tenants.
Property rentals require you to be actively involved in the managerial aspect of the business such as interacting with tenants and handling paperwork and legal documentation, sometimes.
That sounds like more work, right?
Well, you can hire a manager to do it all for you.
But that means you would have to pay them. So you can as well just do it yourself or partner with someone.
Real Estate Investment
This one is a lot more passive. What I mean is: you are not actively involved at all.
Also, the most popular way for you to earn passive income with real estate investment is through Real Estate Investment Trust (REIT).
REIT is a company that owns, operates and finances a landed property that produces income. In REIT, you buy the shares of a landing property, contribute money and earn your returns when it's time.
Whichever way you want to do it, Real Estate is one sure business you should really venture into if you want to earn a high-level passive income.
Launch A High-end Blog
The next way to diversify your income stream is through blogging. One very important thing to note about blogging is that it can never get out of fashion.
With the growth of the internet, blogs are here to stay. Whether it is a written blog post or a vlog (video blog), there is so much valuable content released on the internet everyday.
According to blogging statistics, the blogging industry is said to be worth $400 billion as of 2020.
This means a lot – the blogging industry is CASHING OUT!
Blogging is an effective way to earn good passive income, and it is the most popular. Majorly because businesses turn to bloggers to help advertise their products and services to a wide range of audience.
You can earn as a blogger through making sponsored posts for businesses, affiliate links, and selling courses.
But to make money from blogging, you have to actually start blogging. Here are a few helpful tips.
How to Launch Your Blog
Launching your blog is not as difficult as it sounds. Actually, you can launch your blog in a day. All you need to do is follow these steps:
Identify the type of blog you want
What type of blog do you want to start? Is it a fashion blog, a food blog, a lifestyle blog, a travel blog?
Determine the niche you want to specialize in
The rule of thumb in business, and in life too, is that you cannot serve everyone! Likewise, you cannot engage everyone the same way. Determine your target audience for your blog.
For example, if you are a food blogger, are you writing for African food lovers or for Western food lovers living in California?
That is very important information to consider.
Determine the kind of tone you want for your blog
Do you want to sound purely informational to your audience? Or do you prefer a more conversational tone?
Whichever one suits you, go for it.
Decide on your blog name
One tip in creating a blog name is that it must be catchy and easy to remember. Try not to use a series of numbers because it might be difficult for people to memorize.
Instead, you could use your name, your business name (if you want to start a blog about your business), or the name of your cat (if you have one, lol). Whatever name you want to use, make sure it is simple and catchy.
Register your blog name as a domain name (.com). After doing all these things, now it's time for you to get your blog online.
Launch on a blogging platform
After you have followed the steps above, it's now time for you to officially launch your blog.
Fortunately, there are amazing blogging platforms available to get you started as a blogger. For example, WordPress.org, Squarespace, Weebly, among others.
Give valuable content
One of the best tips of having a successful blog is giving valuable content to your audience.
Your audience, and money, will only grow if you give out valuable content.
Bonus Tip: BE CONSISTENT. No one wants to subscribe to a blog, or vlog, where there is inconsistent value or results given. Do not be inactive.
You might say “But Martin, I don't like writing”
You are not a fan of writing, don't worry!
You can hire freelancers to do all the work while you just approve, sit back and let nature take its course.
Blogging can be a very profitable hobby. Most of the top earning bloggers confirmed they first started their blogs or vlog as a hobby.
Remember, blogging is fun. While delivering valuable yet interesting content, try to have fun doing it.
A great blog sets you to earn over $1,000/month. That is an amazing bonus if you want to pave your future into wealth and abundance.
Start an Online Retail Store
An online retail store is just like a regular store but via the Internet. It is a website where customers place orders for what they want, make payment and get the goods delivered to them.
With over half of the world's population now becoming tech savvy (because we are in the internet age), more consumers go to shop online.
In fact, according to Statista, there are over 2.14 billion people expected to make their purchases online. This signifies the strength of E-commerce world wide.
You too can join the changing trend and make your money.
A lot of people online could just be interested in what you are selling. And that means good money. But first, you have to get started.
How to open an online store
You want to open an online store so you can earn more passive income, right?
That is really brilliant!
However, you have to follow a few tips on how to open one.
Decide on what you want to sell in your store
There are a wide variety of things to sell in an online store. Here are a few products on high demand
- Food supplies
- Children toys
- Working tools
- Kitchen equipment, etc.
When doing this, you also have to determine who you want to sell to. This means you have to determine your niche.
Whatever you choose to sell, make sure there is a market for it. No one would buy what they don't need.
That is why you need to identify your niche.
Get a catchy business name for your online store
There are lots of options to choose from. Just make sure that your business name is something that people can remember easily.
You could pick a name that best describes your business or what it does.
For example: Let's say you sell toys online for growing children, you can call your online store “Smart Toys”.
Now, the name is easy to pronounce, understand, type in, gives the audience an idea of what you do.
You could also use some resources like: Shopify Business Name Generator, Wordlab or Wix.
Register your business name and your business
It is very important to get your business registered for legal documentation.
Register your business as a domain name. For example “Smart Toys.com”
You don't want to be arrested for running an illegal business now, do you?
Besides, people would trust you more when they see you are actually registered and legal.
It means no shady business.
Determine the platform you want to use
There are various online platforms available to help you launch your online retail store. Online platforms like Shopify and Woocommerce are the most popular because they have a very large audience base visiting their sites daily.
Now you are ready to launch your online store and build a profitable online business.
The best thing about an online retail store is that it is actually online, which means you can connect with thousands of buyers from the comfort of your home.
Now, that is a great way to earn a passive income, don't you think?
Sell Online Courses
Another interesting way to earn good money online and build wealth is through selling online courses.
Personally, I think that this is very effective because people are hungry for knowledge. Don't be afraid to share it.
Sell an online course about a topic you are very knowledgeable about. For example: you could sell a course on how to make a fully knitted sweater in 4 hours.
That sounds fascinating, right? As a knitter, especially if you are a beginner, you would want to buy the course. This would be more fascinating if you want to give a loved one something crafted from your hands.
There are thousands of courses sold online on Instagram, Facebook, LinkedIn, Email, and so on.
So you are just basically exchanging your valuable knowledge for money.
You could even sell a language course to foreigners. Let's say you want to teach basic french, you could sell it to foreigners who want to travel to France or Cote D'Ivoire for a business trip, a holiday, or to students who just want to learn a new language.
But don't forget the general rule about selling. Do not sell what no one wants.
I always say this the best way I can.
If no one wants what you are selling, then you are just wasting your time. No offense.
Before selling your online course, make sure you are known for sharing valuable content about the topic you want to sell.
That is literally the best way to build trust among “your audience”.
You have to be active and consistent. No one wants to get advice from someone they don't trust. Establish yourself as a trusted person.
How to build trust online
If you want to make so much sales online, you have to get people (who don't even know you) to trust you.
But they won't just trust you out of the blue like that. You have to show them why they should trust you. Here is how to make them trust you:
Engage in social media
Join twitter discussions( about your niche course), comment on Instagram( not random comments but well thought out comments that concerns what you sell), join as Facebook community concerning your niche.
Post valuable content
Be consistent in doing this. The more value you put out there, the more trust you build.
Get someone to endorse you
People are 5x more likely to purchase something when it has been recommended by people they know. Tell your friends to give you a shout out on their platforms (social media handles) and talk about your course. That way, their followers would also check you out.
Partner with someone
Someone once said ” The best ideas were formed through partnerships.” To make the offer more interesting and “juicy”, partner with someone as an extra value.
For example, when selling a french language course, you could partner with someone who knows sign language very well. It makes the course really interesting.
Create an Email list
If you own a blog or a website, this will be much easier. You give out very valuable content in exchange for their email. Whoever puts in his/her email address has indicated interest. He/she is a potential client. This is how you build a good email list.
Building trust online takes time. Invest your time in showing credibility so that your audience would be willing to spend on you.
Start Your Own Podcast
A podcast is like an audio file that is distributed on the internet and made available for download.
There are about 2,000,000 podcasts in the world today, with 50% of U.S homes being podcast fans. That is a really huge market. There is a really big business opportunity in starting your own podcast.
It's basically like a blog where you share your opinion on different topics.
How to Build Your Podcast
You can build a top podcast following and earn thousands of dollars a month
Choose your format
The general types of podcast formats include interviews, Q&A, Comedy, News, Relationship, and Religion.
Define your audience
Just like a business, you need to know who your audience is. You can't expect everyone to listen to your podcast now, do you?
Exactly! That is why you have to define your audience. That way, you are clearer on what they like to listen to.
Get your equipment
You cannot be ready to launch without having the necessary equipment and tools needed to run a podcast. Don't forget the frugal lifestyle, and make sure to get budget friendly equipment.
You are not opening a full radio station, so don't go outdo yourself, okay?
Just get only the basic but important stuff like a computer and a mini microphone (these come first). Then you could get headphones, headphone amplifiers, digital recorder, SD card, microphone cables, editing software, among others.
Create a website
Yes, your website needs a home base. Your website will help you build a relationship with your audience. Your call-to-action, at the end of each episode, is what you would use to send your audience to your website.
This is a good way to build traffic to your website/blog
Sign into a podcast hosting platform. A podcast hosting platform helps you store up your mp3s (your recordings). The most prominent ones you can choose from are Buzzsprout, Transistor, Simplecast, Podbean.
You will earn money through Sponsorship and advertising, Selling online courses, Coaching/consulting, Crowdfunding/donations, Affiliate marketing.
The more popular your podcast becomes, the more money you make from ads and sponsorships.
Become A Social Media Influencer
Becoming a social media influencer is one of the big trends out there now.
Infact, 2020 records one of the highest rises of social media influencers on Instagram, YouTube, Tiktok and so on.
Remember earlier in this article, I mentioned about starting your own vlog? Yes, that is one of the things influencers do.
As an influencer, you would get to do sponsored ads for brands, get paid to make shout outs. Based on your contract, for every sale you make for them, you get a commission.
This is the estimated market size of the influencer marketing industry as of 2019.
The need for influencer marketing is on a high because brands are looking for the best influencers to effectively marketing their products/services
Just keep creating valuable video content and posting on social media – on Instagram, YouTube and Twitter. This will help you create a good and engaging list of followers on social media. To do this, you must have a strong online presence.
Find your niche
Know who you are speaking to. There are over 200 million active social media users. You need to identify the type of people you are speaking to.Create your voice, a voice that speaks to your niche.
Find out basic information like:
- Who are you talking to? Men or women?
- What is their age range?
- Where do they live?
- What is their educational level? Are they working or not?
For example, you can post lifestyle contents that pertain to female black Americans, working in the fashion industry.
Choose your ideal social media channel
There are different social media platforms available but not all of them are designed the same way. Know what content type is more engaging in each social platform.
The way you post content on Instagram is not the same for Tik Tok. Instagram is for building photo memories, it is different from posting content on Tik Tok.
Likewise, both Tik Tok and YouTube are video platforms, Tik Tok is for making short funny videos and catching fun, while YouTube takes longer, more educational and purpose-driven content.
Also, take note of where your audience is. You might be thinking of being an Instagram influencer but your audience might have a major base on Twitter.
Develop your content strategy.
Plan out your content. Decide on what to post, how to post, and when to post it. Your content is what attracts people to you. The more valuable and engaging your content is, the more people will follow you and your community will grow.
Also, be interactive. Let them get to know you and relate with you as a person. That is how to build loyal followers.
Be consistent in what you post.
Consistency is key! If you want to record success, be consistent. Create a content timetable for each week and stick to it.
Use a content planning software like Buffer to help you automatically post your content. All you have to do is upload the content to Buffer and set the time of posting.
Voila! You are good to go. It isn't so hard now, is it?
Brands will only work with social media influencers who can create good engagement with their content.
Run Free or Paid Webinars
Sell online courses through webinars. Webinars are actually web seminars where you host interactive online video workshops, lectures, and video presentations.
People are willing to pay for knowledge. So you can teach them what you know. Give them what they want and let them give you what you want.
Webinars got more popular during the Covid-19 lockdown period because that was the only way educational seminars could be held.
In case you do not know what to teach, here are a few topic choices to pick from:
- Beauty and make-up
- Technical/Creative writing
- Web Design
Whatever topic you choose, make sure you have some knowledge on it.
How to Start Your Webinar
It isn't difficult to start your webinar. When you finally decide to host a webinar, there are a few steps to take to ensure that your webinar is a success
Choose your webinar topic
Your topic has to be educational, motivational and informational. No one wants a webinar about entertainment gist.
Pick a date and time you can stick to
If you have a busy schedule, choose a date and time that is free so you can effectively deliver your content.
Choose a hashtag for your webinar theme
Hashtags spread content fast. Choose a suitable hashtag that speaks about what your webinar is about. For example, #thebillionairemindset. From the hashtag, one can tell what the webinar is about and that creates curiosity.
Send out invitations on all platforms you can think of
E.g from Instagram to Facebook, YouTube, Reddit. Make sure you follow up on your audience after the webinar is over.
The best and most popular webinar software, to get started on your webinar, is Zoom. Other recommended softwares are:
- WebinarNinja (for teaching, use this one), and
- My Own Conference.
With passive income, you can have a flowing source of money even while still maintaining your main job.
Disclaimer: Following these steps doesn't mean you would start making money overnight. In fact, earning a good passive income takes time. BE PATIENT AND CONSISTENT.
However, there is no rule of thumb that says you can have only one stream of passive income.
You can have as many as you want. So go for it.
5. Reduce Your Credit Card Debt and Student Loans
There is a sweet feeling that comes when we make a purchase, whip out our credit card, swipe and we are off. It is so good, right?
Because at the end of the month when the bills start coming in, it won't be so funny at all. It doesn't make sense to work all month, then at the end of it all, the money goes to clearing up more debts.
Generating more credit card debts can be really detrimental to your ‘financial health' Credit card loans have high interest rates attached. So, basically, the more debt you accrue, the higher amount you pay.
You have to reduce all possible ways of getting more debts from your credit cards and student loans.
How To Reduce Your Debts
- Stop accumulating debts, especially bad ones.
- Reduce the number of credit cards you have. More credit cards = more debts.
- Create an emergency fund – for paying off debts.
- Negotiate with your creditor for a lower interest rate.
- Never take loans to pay up debts. That would only lead to more debts.
Accruing more debts would only lead to bankruptcy. That is the exact opposite of financial freedom.
Getting a good credit card that would help you save up more money debt. There are a few very good ones like Chase Freedom Flex, Citi Double Cash card, and Discover credit card. These are just a few of them.
Debts are the biggest roadblocks in your journey to financial freedom. Avoid them like a plague.
6. Invest Your Money to Diversify Your Wealth
Financial investment is very important and critical to building wealth and living in abundance. It is the vehicle that takes you on your financial journey.
A research carried out, Survey Consumer Finances, showed that 53% of families, in the U.S, owned publicly traded stock in 2019.
The only way to enjoy a blissful retirement life is through investing. I can't say this loud enough!
Investing your money as it comes yields a very positive return in the future. There are short-term investments and long-term investments.
You can invest in stocks, bonds, ETFs, P2P lending, investing in startups, or buying a small business.
Investing in stocks is one of the most common types of investments and it is an excellent way to grow wealth.
However, you would need to create a brokerage account and fund it before you get started. Once you do that, you can go ahead!
Create your brokerage account
Select an online stockbroker
A stock broker would help you purchase stocks. Or you can buy directly from the company but that will take a while.
Research the stocks you want to buy
Don't just dive into buying stocks, research in the company you want to buy.
Start from the company you are familiar with. When you buy a company's stock, you have now become a part owner.
Decide how many shares you want to buy
You don't need to dive in. You can start really small. Purchase small stocks and see how it goes.
Grow your stock portfolio
Once you have purchased stock from a company, move to the next company and do the same.
Voila! You are now a stock investor.
Bonds are different from stocks. While buying stocks means you are buying a certain percentage of the company, bonds mean you are giving a loan to the government or a corporate body with a return-on-investment rate.
Types of bond include:
- Corporate bonds are issued by companies who are looking for funds to run their company.
- Treasury bonds are issued by the U.S government to find federal projects.
- Municipal bonds are issued by the state, city or the government usually to run a public project.
The best way to buy bonds is to buy it through a broker because they are not issued publicly.
Peer-to-peer (P2P) lending is the online form of investment, where you lend out money to other individuals and get your money back after a due date.
There is no middleman, bank or financial house. But it is really risky.
There are great P2P platforms, like Fundingcircle, that connect borrowers and investors together.
Exchange-traded Funds (ETFs) are funds that allow investors to buy many stocks or bonds at once.
Investing In Startups
Startup investments are also a great way of investing for the future. Here, you invest some capital into potential startups in hope that they would really do well in the market during the long run.
You do not have to be super rich before you can invest in startups. In fact, ordinary people can also invest in startups through crowdfunding sites for startups.
Platforms like StartEngine, and WeFunder give you the opportunity to find a startup company of your choice and invest.
Buying a Small Business
There are over 30.7 million small businesses in America. Buying a small but potential business is a smart step in direction to financial freedom.
Investing in a small business gives a big boost to your investment portfolio. You are now buying into the profits and losses of the business. That is a huge risk.
Investment is all about taking risks.
Having a chain of investments gives you multiple streams of income and can pool a great amount of wealth in the long run.
7. Build Up an Emergency Fund
Life has a lot of unexpected turns and in order to be financially sound, you have to prepare for the uncertainties of the future.
It could be the loss of your house, a financial obligation you have to take urgently, the repair of your car or some medical expenses; whatever it is, these are uncertainties that we need to prepare for.
According to Statista, 45% of Americans have no emergency funds or personal savings.
No one prays to encounter any misfortune but at some point in life everyone goes through it.
That's why you have to set up an emergency fund account to scale you through the tough times.
Set Up Your Emergency Fund
Setting up an emergency fund account is a necessary component for a good financial strategy.
Open a savings account
Your emergency funds account should be separate from your main bank account.
Set a monthly goal
Decide on the total amount you want to save in your emergency fund each month.
Make up for every withdrawal
Make sure to remit more funds into your emergency funds account to replace any amount withdrawn.
You could open as many emergency funds accounts as you want, for specific purposes. It's up to you. Make sure each one is well funded.
There are different platforms available for you to open your emergency funds account.
A traditional bank account
You can go store up your emergency funds in the old traditional way. Go to a regular brick-and-mortar and open a savings account.
After filling in the necessary forms, deposit an amount of money into the account and start saving from there.
Traditional savings accounts are not so reliable because they are very easily available and accessible.
Most banks do offer an interest rate for every deposit you make. When choosing a bank of your choice, find out if they offer interest rates on savings accounts.
Money market account
For every amount you deposit into your money market deposit account, you get interest based on the current interest rate of the money market.
Money market accounts pay a higher interest rate than regular savings accounts.
When you deposit a higher amount of money, you get a higher interest rate for your emergency funds.
Money market accounts are offered at banks and credit unions. So you can easily open one.
Certificate of Deposit
This is also known as CD. Here, your rate of return is guaranteed. They offer a fixed rate of return for a fixed length of time e.g 3 months, 6 months, 1 year. It is offered by banks and credit unions.
Opening a CD account is just like opening a standard deposit account. When choosing the best place to open your CD account, consider
- Interest rate. Go for a locked(fixed) interest rate
- Period of time. That is the total amount of time you agree to leave your funds in the account for.
- The principal. The amount you invest when you open your CD account
- The institution
High-yield savings account
A high-yield savings account is a great place to store up emergency funds. It allows you to receive a higher interest rate than a traditional savings account.
Online banks offer high-yield savings accounts. However, pay attention to the rates offered by the online banks before choosing where to open your account.
An emergency fund is the financial life jacket you cling to when your ship starts sinking. Make sure it's worth it.
8. Money Mindset Secrets: Having Lots of Money is Actually Good
There is a popular saying that goes “To be rich, you have to think like the rich.” If you want to change something, change the way you look at it.
Your money mindset is the perception you have about money. This is the secret to making money work for you.
Abundance is not a myth. It is absolutely attainable when you follow the right steps to financial freedom.
Develop The Right Money Mindset
Developing the right mindset about money is the foundation of your journey to living a life of abundance and wealth. A wrong mindset about money leads to a wrong approach to money.
Make positive statements about money
Even when everything seems negative, keep making positive statements about money. You control your mind with your words. You could download some money affirmation passages from Instagram or YouTube.
A lot of information is contained in books.
Educate yourself about the nature of money. Be informed, read articles, blog posts, watch the news.
Have a mentor
Either directly or indirectly, have a financial mentor who is where you want to be and follow after him.
Keep an open mind
Be open to trying out new things. There is no gain without risks.
Don't compare your financial journey to others
Everyone is unique in their own way. Your experiences and circumstances may be different. Don't expect everyone to be at the same pace.
Failure is not the end
It's okay if you fail. What matters is that you rise again and keep moving.
I could go on and on in showing you how it is important to keep the right money mindset.
But, let me show you HOW to build the right money mindset.
Building The Right Money Mindset
To change your beliefs about money, you need to build the right money mindset.
- Understand what a money mindset is.
- Personalize your positive money affirmations.
- Engage in money mindset exercises.
- Understand that money is neutral. It goes the direction you send it.
- Set achievable financial goals.
- Pay yourself first. You deserve it.
- Be generous. Be a cheerful giver
- Be intentional on your attitude towards money.
- Write down your goals and your positive money affirmations. Say them everyday.
- Give value to money, no matter how small the amount.
- Track your progress.
Positive Money Affirmation
Here are 10 effective positive money affirmations that would get you started in developing a positive money mindset.
- I attract money.
- There is enough money to go round.
- I am productive.
- I am in a positive relationship with money.
- Day and night, I attract money and prosperity.
- Financial success is within my reach.
- I deserve to be rich and successful.
- I have creative ideas that attract money.
- Prosperity is mine. I deserve it and I expect it.
- I attract wealthy associates.
Speaking positive affirmations to yourself about money has a strong effect on the way you see money.
Research from JMIR publications showed that 60% of goals were achieved when positive affirmations were made about them.
9. Buy Experiences, Not Things
The best way to enjoy money is to invest in quality. Buying experiences give your money a sense of value.
Things come and go but experiences are here to stay.
Experiential purchases leave memories and last for a long time.
Minimalists believe that experiences give longer lasting happiness than material possession with no connection. Shared experiences create more connectedness than shared consumption.
Because rich people value money, they spend on what matters to them. Sometimes, these things are not material
Choosing to buy experiences, not things, affects your buying decisions. It prevents you from mindless spending.
Ever wondered why the rule of marketing says ” Don't sell the features, sell the benefits”. That is what it is. Benefits create experience.
How To Invest In Experiences
Investing in experiences results in less comparison with others. Ever wondered why most rich people live very subtle lives?
It's because they want to live on creating experiences and not just material things.
Ask yourself the aim of making that purchase
Is it based on emotion or based on selfishness? There are different reasons for making a purchase. Most people base their purchases on
Check the lifespan of what you are purchasing
Does it have a lasting effect? Would you need it in the long-run? Can it serve multiple purposes?
Define Your Values
Don't just rush into making a purchase. Check if it aligns with your values. Rich people don't follow trends because they know trends fade but memories don't.
Invest in quality
Quality is always better than quantity. Buy what lasts longer, not what changes with time.
Let every purchase have a purpose – to bring you closer to your goal.
Take a break and relax
Once in a while, give yourself a treat of something you love. Take that vacation, go to that restaurant. Don't be too hard on yourself.
New things are exciting but once you adapt to it, they change.
Research carried out showed that people who invested in experiences rather than material things were more satisfied and felt their money was well spent.
The best way to invest in experiences is to invest in travel. Traveling to new places opens up your mind to more creativity and relieves you of the tensions of everyday life.
Experiences provide better memories than the temporary satisfaction obtained from just material things.
There you have it, these are the very vital steps that would cement your way to financial freedom.
Like I said earlier, you cannot become financially independent overnight or in a week. Success takes time to achieve but it is very possible.
Attaining success is easier than sustaining it. These steps are the secrets that make the rich STAY rich, even in the time of crisis.
Financial Freedom FAQs
Ans: There is no definite amount. Achieving financial freedom is relative. But know this: You are not financially free until you are able to finally make financial decisions without fear or worry of the impact it would have on your financial status.
Money is easy to make but wealth is not. It takes more time and effort to sustain wealth than to make money.
Stay true to your savings account and emergency funds: No matter how tempting it is, always fund your savings account first.
Take the risk and invest
You can only build more wealth when you invest. u0022Give up money to make more moneyu0022, that is the rule of money.
Set more goals
When you have achieved your set financial goals, set a higher one. Push yourself to be better than your previous success. Maximize your full potential.
Ans: Financial freedom is the best way to ensure you enjoy a free and happy life, even after retirement, without worries of financial obligations.
The goal of being financially free is to make money work for you and not the other way round.
To move towards financial freedom means that you are no longer comfortable with the status quo of being mediocre and always at the bottom.
It means you are willing to take that great step and build a life your children will be proud of.
Ans: Financial freedom is not a walk in the park. There are several reasons why people don't attain financial freedom status. Some of them are:
One key reason most people never achieve financial freedom is because of Lack of financial knowledge.
Unfortunately, every 4 in 7 Americans are financial illiterates. This has led to a lot of bad financial choices.
How to curb financial Illiteracy
Read as many financial books as you can, especially from best-selling authors like Robert Kiyosaki and Brian Tracy.
Also read news articles and blog posts about finances. Exposing yourself to these would broaden your knowledge on finances.
Watch videos on YouTube
YouTube contains the highest number of educational videos on the internet and it is free.
You can watch free videos that would teach you about finances, give you the latest financial update and advice you on how to spend your money.
Attend financial seminars or webinars to help widen your knowledge on finances. There, you get to ask questions and have professionals answer you.
Join a community
Engage in financial topics on Twitter, Facebook, and other social media handles.
Join a community and share ideas with the members. There are Facebook groups you can join, too.
Impatience (get-rich-quick mindset)
This is a very common reason because humans always want things fast. Because people want to make money now and not wait, they develop a get-rich-quick mindset.
When it doesn't turn out as they planned, they discard the idea and go for what they think is better.
Financial freedom is a journey. It starts with your decision to live a life of abundance and wealth. To achieve that, set realistic goals and work towards them.
No Committed Financial Goal
Most people set financial goals and do not commit to it.
Goals are like the map of your financial journey. They would show you where to go. Setting goals and sticking with them would make your financial journey easier.
Letting go of your financial goals means you have no direction. That is enough to put you to a halt.
Fear of Trying
One of the biggest myths about financial freedom is that it is unattainable. That is why many people don't even want to waste their time trying.
Financial freedom would only remain a fairytale if you don't not step out and make it your reality. It is very much attainable and many people are walking towards achieving it.
Wrong Money Mindset
Having the wrong money mindset affects the way you see money, wealth and prosperity.
People see money as untouchable and impossible to get, so they don't even try.
The way you see money affects the way you treat it. When you see that making money is not a Herculean task, you would see that it is very attainable and within your grasp.
Ans: There are a lot of passive income streams to choose from. Choose the one(s) that best suits you.
Invest in real estate
Start a high-end blog
Invest in stocks and bonds
Learn a high-income skill and be a freelancer
Sell an online course
Be a consultant
Open an online store
Renting out your property
Ans: Achieving financial freedom within a set time frame depends on how determined and committed you are to achieving your goal.
There is no special step to achieving financial freedom in 5 years. Make sure to follow every step listed above.
All you have to do is double your efforts
Yes, double your efforts in every step you take.
It could take a lot more blood sweat and tears. Lol, just kidding! But you get what I mean, right?
Keep a track record of your progress
Whenever you want to lose hope, look at that track record and keep moving.
Be friends with your financial advisor
In fact, let him be your closest buddy. You need someone who would tell you when make an investment and when not to
You can achieve anything, the only limitation you can ever face is your mind.
Start Your Journey to Financial Independence Now
Financial freedom can mean a lot of things to different people. People have different motivations on why they want to be financially free. It could be personal or professional.
Whatever your reasons are, thank you for taking this step. You making it this far in this article means you are serious about your decision. So I say “Thank you”
Thank you for choosing not to be mediocre but rather choosing to live a life of purpose and value. Not being satisfied with working for peanuts.
Bonus Tip: Tell someone you trust about your decision. Getting people involved helps your accountability. You are accountable to someone who would put you in the right track when you backslide
Deciding to secure yourself financially and become financially free is a big step to living a fruitful and happy life.
It means making sure that your children enjoy a comfortable childhood without any financial lack.
Now you have decided to take this journey, do not turn back. Brace yourself for the task ahead. There is no success without risks, so it's only natural to face challenges.
Against all odds, make sure your eyes are fixed on your clearly defined goals. You are changing your old habits to new, intentional and positive ones.
To see results, you have to be committed and intentional about it. You can achieve anything you set your mind to. Financial freedom is waiting for you!
P.S: Did you find this article helpful? What steps have you decided to take in your journey to financial freedom? If you have any more questions on how to achieve financial freedom, feel free let me know in the comment section.