Most people don’t realize how much they value financial freedom until they experience a financial crisis. In my own life this looked like going from a multi 6-figure income to zero overnight. I quickly realized that:
- It is painful to not have enough money.
- Without proper planning it is easy to experience a crisis.
- It takes work to have emotional freedom around money.
- Anyone can become financially free no matter how grim your present situation.
Think about it – a majority of multi-millionaires have a rags to riches story. Why? Because desperation does not breed apathy.
Desperation breeds creativity.
People who experience dire financial straits have a keen sense of just how badly they’d love to change their situation. If someone tells you that money isn’t important, they probably have more money than they need!
A huge part of the financial freedom equation is mindset. If you think you will always be broke you are right! Your subconscious kicks into overdrive to prove whatever you believe about money, life, love, etc. So the first step is to begin shifting to a prosperity mindset and ditching any limiting beliefs you have around money. Like all habits, it is easier to replace negative beliefs with positive ones than it is to just eliminate a negative belief. For instance, “being rich is greedy and rich people are evil” transforms into “being rich is a blessing, and the more money I have the more of a financial blessing I can be to others.”
Before a mindset shifts take place decide what your financial goals are and why. If you want to be a millionaire, fabulous! It is more likely to happen, though, if you get crystal clear about why you want to be a millionaire in the first place. When I say “why” I don’t mean to buy a yacht or a Swiss chalet. Dig deeper and decide what financial freedom will bring you by way of feelings and emotions. For example, when I am financially free my passive income will exceed my desired lifestyle. This gives me the ability to choose how, where, and with whom I spend my time. It allows me to be more generous and joyful, free from worry, fear or anxiety over how to pay the bills or make ends meet.
Once you are clear on what you want and shift to a prosperity mindset the place to land is awareness.
Increase awareness of what you are spending and earning and find a system for tracking your money. I suggest using a system like Mint.com where you can automate this process as well as track investments, debt elimination, savings and progress toward all of your financial goals. This will help you see if your current financial patterns are serving you.
Finally, one of the easiest ways to speed up your path to financial freedom is to simplify. Reduce the amount of things you consume or “need” from housing, cars, clothes, and jewelry to memberships (think newspaper, magazines, gym, professional organizations), business expenses, and personal and professional assistance (house, yard, etc. – whatever you hire help for). Identify whether the things you have or the services you pay for are improving the quality of your life equal to the investment you are making in them. If not, get rid of it! When clearing physical clutter, a good rule is if it doesn’t bring you joy, raise your energy, or if you don’t use it regularly, get rid of it! Being aware of what you have and do and how it makes you feel will make it much easier to simplify your life.
By creating a prosperity mindset and clear financial goals, increasing your awareness of money and simplifying life, you will be well on your way to a brighter financial future.