Are you looking to achieve financial freedom in the future? Do you want to know of the different ways you can achieve it? This might be just for you.
So first let me explain what is financial freedom. This is to be able to live your life the way you want it without the need to go to work every day. For me the ‘’normal’’ life causes too many limitations.
By ‘’normal’’ I mean the life that most of the people in the world have. They go to high school, then they go to college. Then they work their whole life in the field that they have chosen to be. For some people that might seem ok, but I just cannot accept the fact that I will work week after week after week until I turn 70.
Also quite possibly a job I don’t like for a boss I am not a fan of. This system does not seem fair to me and I will not live my life according to it. I don’t want to work for someone else and be dependent on someone else to give me my paycheck, so I can have a roof over my head.
Again, nothing wrong with that if that is the life you want. It’s just not something I want to do. So what are the options then ?
Luckily there are quite a few different ways that you can escape that cycle of work during the best years of your life.
1. Real Estate Investing
The idea is that you buy a couple of properties , rent them out and generate enough income, so you don’t have to depend on a paycheck from your employer anymore. It’s a plan that works for a lot of people. Bear in mid that investing in real estate is not really that passive and you will have alot of different issues to deal with almost every day.
First of all the properties require maintence and you will have to provide this to your tenants. Second you will have to pay a decent amount of your money in taxes and amortisation costs. This is for those repairs that you need to do every now and again.
You will probably need to pay interest on the mortgages on your properties, unless you have hundreds of thousands or even millions of cash sitting around. All in all not a bad option, but for me it can easily go to a full time job, escepcially after you have a couple of properties.
That being said, don’t get me wrong- you can live a fantastic life by being a real estate investor. You can use the power of leverage and really compound your wealth. But beware that you need to know what you are doing and have some free time. Of course there is always the option of investing in REITs.
2. Stock Market Investing
My favourite option, and how im planing to achieve financial freedom. There is hardly anything more of a passive income than owning stocks. After you do your initial research and buy into the stocks that you want there is hardly anything you need to do.
You just receive your growing dividends quarter after quarter and have all the time to do whatever you want to do in life. The idea is to build a portfolio of stocks, which pay increasing dividends. That way you are beating inflation from the growth and receive your dividends quarter after quarter.
The beauty of it is that you basically have no expenses – all you need is a laptop and interntet connection. This strategy will usually take some years depending on your savings rate and the rate of returns of your portfolio. But once you achieve the desired income you can say goodbye to your employer and live the life the way you want it.
3. Having a Passive Business
This part is a bit tricky and not that easy to achieve, because any business requires attention. Still, if you put enough thought into it, you can minimise the time you need to put in. I will give you a couple examples.
ebook Publishing
As you can probably guess this is self-publishing eBooks online. What you need is a laptop and something interesting to share. The good part is that this is a trully passive business. Once you do the hard work, there is not left much to do.
And the hard work means writing, publishing and promoting your book. But once the ball starts rolling you can collect your money until there are buyers around.
If you are interested and want to know more you can read a good guide about it here.
Starting a Blog
Another good example of somewhat passive business is having a blog. It requires a lot of time investment when you start, but it can repay greatly in the future.
The idea is to write articles and products and gain following that enjoy reading those. The principle is very similar to book writing.
Also starting a blog is incredibly easy now. All you need is a domain and a host. You can get both of them from Bluehost.
Starting a Youtube Channel
A Youtube channel is very similar to a blog, but in a video format. The principle is the same. You share videos, gain a following and make passive income once things get up and running.
If you want to learn more about Youtube you can check this guide.
Summary
There are various ways to achieve financial freedom. The common thing between them? They all provide you with passive income. Another common thing? They all require a lot of your time upfront. But I think that is fair- if we want to work less in the future we have to work more now.
This will be all, hope you got some basic ideas on how to one day achieve financial freedom. Wish you all the best and don’t forget to subscribe if you want to keep updated with new content.