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RE: What Is Financial Freedom? Financial Freedom Episode #2

in #money6 years ago (edited)

Most people don't need that much money to live comfortably month to month. The key is spending way less than you make, and then what you make doesn't matter as much. In other words someone on a lower income can still become wealthy. Making more certainly helps, and it makes the process MUCH faster. I tell my children to learn a profession, a trade, and at least a second language. Then learn basic economics. That's an easy formula for success. Following that plan, you should be making plenty of money to build wealth.

I know lots of people who stay poor because they love to travel when they don't really have the money to do it. Then I know lots of other people who have tons of doodads, but they too are always broke. All their extra money goes into those doodads. Avoid those things. Only own vehicles you need. Don't go on vacation either unless you have the extra money (once your investing plan is completed for the year).

It's all fairly simple and common sense, but most people unfortunately do not have the discipline required.

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@finnian. Yes the spending is one of the factors to keep in mind. I will address this in the episode 2 weeks from now I think (I don't remember the schedule of by heart). Yet to me, it is also important to be able to do what you love. If you are happier spending all your money on travelling rather than becoming rich, please do so. I like to do both. I'm just back from Sri Lanka and I absolutely loved it. Yet I'm also making sure my investments work :)

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