The following statements occur too often in our daily lives.
No matter how hard I work, I just can’t seem to get ahead; I just feel stuck financially; I hate my job but I can’t quit it because I have too many obligations; I feel like I am in a rat race; I am tired of getting up early in the morning everyday; I am tired of not having enough money.
Over the past two years, I have had several of clients complain to me about some sort of discomfort financially, ironically, majority of these clients make over $100,000 a year, but they still feel insecure and trapped financially.
Here are 3 steps you can take to begin breaking the shackles of financial insecurity.
- Less is More: In general, we have been conditioned to think bigger is better; more things will make you happier; and this logic cannot be farther from the truth. We tend to spend majority of our income buying things that we don’t need, which leaves us less money to invest and get out of the rat race. Taking the minimalist approach to life can actually save you a lot of money and begin your path to building wealth. I read an article over the weekend that purported that we actually use less than 30% of everything we own and we waste over 70%. This is mind blowing. This can be the thing stopping you from becoming wealthy and becoming financially free. Imagine actually taking your savings and burning 70% of it. It will be difficult to amass wealth with this kind of insanity. For example, how many TV channels do you have versus how many you actually watch? How many rooms in your house barely get any traffic? How many shoes and clothes haven’t you worn for a year? How many times do you actually drive your car compared to when its just parked in the garage or the parking lot at work? If you pay attention to what you waste, commit to a minimalist lifestyle, this could be a major game changer in your pursuit of financial freedom.
- Avoid Consumer debt: What are consumer debts? Your student loans, car notes, credit cards that you use to buy doodads, and your mortgage (for your primary residence), Yes!!! your mortgage is a consumer debt. Consumer debts are debts that you get into and it does not pay you more than it costs you. When you have consumer debt it is almost impossible to get out of the rat race. Servicing this debt will keep you from being able to take the chances and risks to strike out on your entrepreneurship or life desires. It ties you down. One of my good friends went to Harvard Business School but came out with a huge student loan, then of course he has a big house with a big mortgage, three kids, a stay at home wife…but two cars, both with car notes, a lot of credit card bills from when he was pursuing his passion, payments from the furniture he bought on credit to furnish his big beautiful house, etc. He has a high paying job, but he hates it. He is stuck there because he needs that paycheck every two weeks. He cannot take the chance to strike out and fulfill his dreams. He is exceptionally talented, but his consumer debts are robbing him of his talents. Beware of consumer debts.
- Take Action: The last step to getting out of financial turmoil is actually taking action. It is easy to think of how much we want to be financially free and then retire to our beds without taking action towards this step. Thinking alone will not accomplish your goals. You have to take action, no matter how small. The journey of a thousand miles always start with one small step. Don’t give into fear of failure, don’t give into fear of rejection, don’t give into fear of ridicule. Take a bold step towards achieving your goals and pursue it relentlessly and tirelessly. If you have followed the first two items identified above i.e. less is more and avoiding consumer debt, then it becomes easier to take action towards following your dreams. Accomplishing your goals take struggle, don’t just retire to a life of comfort and ease.
For more articles like this, please view my website at www.victorlofinmakin.com
Gratefully,
Victor Lofinmakin
Your realtor
Discovered Homes
832-788-1782