Six Principles to Achieve Financial Freedom

Do you know, the longest word in the English/any language is 1,89,819 letters long.

It’s the name for a protein nicknamed “Titin” and would take you more than an hour to say it out?

The reason I’m sharing this is quite simple. 189,819 letters is way too long! That word could have easily been simplified down to 50, 25, or even 10 letters. But it wasn’t. Why? It’s because some people love to complicate things. And nowhere is this truer than in the world of finance.

If you spend just 30 minutes of your day reviewing 5–6 different finance blogs, magazines or news channel, you will feel like your head is about to explode and you’ll probably believe that you need at least 25 years of advanced economics experience to understand the information required to achieve financial freedom and increase your wealth.

However, that’s not the reality.

As I mentioned, people like to complicate things, there could be multiple reasons for it. Some enjoy doing it, some want to sell you something. However, today, I’m going to make it easier than ever and dive right into the topic that is most important to anyone. If you follow these Principles to Achieve Financial Freedom, then you will be well on your way to life of freedom, abundance, and prosperity.

The Principles for Financial Freedom are:

1. You are Your Most Valuable Asset  

2. Welcome Minimalism and Goodbye Consumerism

3. Pay Yourself First and Do It Automatically

4. Recognize: Income Problem vs Spending Problem vs Investing Problem

5. Passive Income vs Active Income

6. Buy Assets > Earn from Assets > Repeat

I remember sitting for my first lecture in the degree college and my professor giving his first speech.

He first asked us what the most valuable asset we own is. We came up with answers like a car, bike, etc. However, my professor had an interesting reply which was something like this:

“Your most valuable asset is not your house, car or anything else. In fact, it’s not any possession you own. Your most valuable asset is You. The value of all your future income is the most precious thing you have, and the greatest investment you can make is one into yourself. Sitting in this room today is a step towards increasing the amount of money you can earn in future and the quality of life you will enjoy until death and your generations to come.”

Yes, you are your biggest asset. When you invest in yourself by reading from blogs like these on internet, books, from a coach or mentor, attending seminars, learning new skills, or other forms of personal development you are making an investment that will give you 100%-1,000%+ return over the course of your life.

Education doesn’t end when you complete your college. In fact, the real education starts when we complete our college. We learn real lessons of our lives by coming across different situations and circumstances.

“Many people have the ability to earn two or three times the amount of income they are presently enjoying by simply adding one or two new skills to their skill set.”

Brian Tracy

Then why should we stop this beautiful habit or learning?

Let’s say you spend Rs.200 on a book and you just learn one lesson or skill that helps you improve the quality of your work. That in return, helps you get a promotion and increment of your salary by 15% in your income each year. Just imagine the impact it will create in the long term because of the compounded benefit. Your life will be on a different course completely.

And the wonderful thing about today’s digital age is there’s more information than ever. You can learn photography, sales, cooking, writing, editing, or anything other skill you want for free.

I learnt building web site for free from the internet and now I’m following my passion for sharing the knowledge here.

“Formal education will make you a living; self-education will make you a fortune.”

Jim Rohn

Just think about that. If you want to get your finances in order, then start by investing heavily in yourself and make it a habit. We must constantly learn how to make more money and bring more value to your business or company, how to manage money better and automatically have your money work for you, how to manage your time & energy more effectively so that you can make the maximum use out of the resources and health you have today.

Be hungry when it comes to learning. Even if you think a specific skill or lesson is not relevant to you. Still learn. Knowledge never goes waste and it will add up value at the right time without you realizing it. Learn, learn, learn as much as you can and your life will change. That’s a promise.

“The real measure of our wealth is how much we would be worth if we lost all our money.”

Benjamin Jowett

Personally, I have made a habit of reading books every day and I use the App called “Habits” that sends notification on my phone to remind me. It’s all about creating good habits.

“We first make our habits, then our habits make us.”

John Dryden

Hence,

Invest in as much of yourself as you can. You are your own biggest asset by far.

Warren Buffet

Conclusion

The rich have a different mindset about money. They look at money as the medium to do what they want, instead of looking at it as elusive and hard-to-get. The rich know their priorities. They don’t waste time they are constantly reading and learning to expand their worldview and financial savviness.

If you are brand new to financial education, do not worry. The fact that you want to learn makes you ahead of most people. These concepts will only get easier as you read more about them, but they will become especially clear once you implement them.

My poor dad often said investing is “risky”. But my rich dad said being financially uneducated is risky!

Robert Kiyosaki

I encourage you to read more and then teach others. The best way to learn is by doing or teaching. And, as you probably know, the school system doesn’t teach this. I don’t blame them though, the rich own the system and why would they want to make more competition for themselves?

Hence, if you want to achieve success, financial freedom and wealth then you must have the same mindset that rich people have. If you want to get this mindset, then sign up for this free newsletter and increase your financial knowledge.

Read Principle 2. Welcome Minimalism and Goodbye Consumerism