STRIVE TO ACHIEVE FINANCIAL FREEDOM

"Money can't buy happiness, but it will cer-tainly get you a better class of memories." – Ronald Reagan

Being financially free could mean having enough savings, multiple assets that generate various income sources, and cash on hand, making it easier to exe-cute life decisions without being overly stressed about the financial impact. It also means having the ability to retire at forty or forty-five years old with cash-flowing assets and financial freedom, not at sixty-five years of age with a pension and many liabilities.

The path to financial freedom isn't an easy road. It begins by defining what it signifies to you, then by developing a mindset in which you prioritize building a solid financial foundation of savings before moving on to spending and investing. This part will discuss three things: how to manage your money? The difference between assets and liabilities, and at last investing.

I) How to manage your money: the difference between financial success and failure lies in how well you manage your money. T. Harv Eker, the author of the New York Times best-seller "Secrets of the Millionaire Mind: Master-ing the Inner Game of Wealth," developed the concept of the "Six Jars Money Management System," which is the most straightforward, most effec-tive money management system that you can start using to budget your money the right way and to learn how to allocate your finances. You can use this method by setting up six bank accounts or using physical jars6 that will include a percentage of your income:

? Necessities (55%): this jar takes a higher percentage of allocation from your income than the other jars. It is for all your necessary expenses such as rent, food, utilities, bills;

? Long-term savings for spending (10%): this percentage of your income is used for big purchases like buying a car, also as an emer-gency fund (which should be worth at least six or twelve months of your income) for rainy days. Another usage is for unexpected medi-cal expenses when an unexpected event happens or for miscellane-ous items;

? Financial freedom (10%): you can use this money to invest in as-sets or start a business. These investments will increase your income in the long run. When you have money put aside, you will be able to take advantage of investment opportunities. A good example would be the coronavirus crisis when many people bought stocks, shares, and cryptocurrencies at a discount;

? Education (10%): Warren Buffet states: "The most important in-vestment you can make is in yourself." It is true because the more you invest in yourself, the more you will be valuable and the more you will be able to generate wealth. You can learn new high-demand skills such as writing, copywriting, coding, SEO/google analytics, Facebook ads, web development, Photoshop, project management, new languages, sales, artificial intelligence. Make sure you take your education and success seriously;

? Fun (10%): you can spend ten percent of your income on play, fun, entertainment guilt-free, or on whatever makes you happy such as eating out, massages, weekend getaways;

? Give (5%): you can use this money for charitable donations or maybe for helping your relatives and friends. When you are a giver, you will notice how much joy you feel before and after. It will un-doubtedly change your perspective on how you see money and de-velop a mindset of abundance.

You can adjust the percentages if you want and focus more on education and financial freedom jars. Make sure to find ways to make more money by investing while cutting down your expenses and living on less than you earn. Always stick to your budget by tracking your expenses regularly.

II) Difference between assets and liabilities: according to Robert T. Ki-yosaki, the author of the best-seller "Rich Dad, Poor Dad," the first lesson you need to know concerning money is to differentiate between an asset and a liability. An asset is something that puts money in your pocket. It could be stocks, bonds, mutual funds, a piece of real estate, a website, or anything that produces cash flow for you every single month. On the opposite, a liability is something that takes money out of your pockets, such as mortgages, luxuri-ous cars, and overvalued smartphones.

The rich acquire assets. Instead of relying on their job as the only source of income, they invest in assets and, in general, focus on creating multiple income sources. Conversely, the poor and the middle-class acquire liabilities.

Robert T. Kiyosaki tells the story of his poor dad (his biological dad), who was making quite a lot of money from his job. However, his expenses seemed to always keep up with his income, never allowing him to invest in assets. Thus, his liabilities, such as his credit card and debts, grew greater over time. On the other hand, his rich dad (his friend's dad) invested and minimized liabilities. As a result, his assets generated more than enough income to cover expenses with the balance reinvested into assets. As a result, his rich dad ended up financially free with more assets and, therefore, a growing income.

III) Investing: we can do three things with money: spend it, save it, and invest it. To create financial stability and achieve financial freedom, you must save at least some of the money you earn and then invest it by acquiring assets. Saving means putting your money to rest, while investing means putting your money to work. Savings accounts don't allow your money to grow quickly, conversely to investing where you can receive higher returns and beat infla-tion. Once you invest your money, you must multiply it by reinvesting cash flow generated by your assets and maintaining it.

When it comes to liabilities, always avoid debt that doesn't pay you back. Take debt only to invest in assets and only if the return generated by those assets is larger than the interest cost. In your investing journey, don't avoid taking risks but learn how to manage them.

Your first investment should be on yourself. Find ways that will allow you to use your skills or labor only. Admittedly, there are different ways to make money on the internet passively by putting in the hard work now and getting paid continuously. Assumingly, you are passionate about finance. You can start by teaching online courses, start a YouTube channel, put together a course you can sell through educational platforms like "Udemy," and write a book concerning the subject. It is greatly recommended to invest your efforts into one thing until it's growing, then you proceed to something else. Re-member that success does not happen overnight, and the only way to make money is by providing value.

Having multiple income streams is essential to achieving financial free-dom. It earns you money without taking up much of your time and effort. Here are some ideas you can try:

? Invest in the stock market;

? Invest in cryptomoney;

? Start a podcast;

? Become an affiliate marketer;

? Sell a digital product;

? Sell a course;

? Start a business and automating;

? Build a website or an app.

At last, remember that if you learn to manage your money now, you will be able to handle and supervise higher amounts of money in your future.

Source: Level up: 33 life-changing rules to become the best version of yourself