Simplify your lifestyle
When a trading company is at risk of being liquidated there are two things they focus on: cost savings and generating income. In other words simplifying the cost structure.
In personal finance terms this means simplifying your lifestyle. Sure, everybody would love to have the best gadgets and toys around but many people have these things at the expense acquiring extra debt which they have to pay off over years. What is the point of doing this? Usually media/peer pressure or image/reputation.
To begin to live financially free, take a look at your current expenses and see which items you currently pay for or have a loan against, such as a sports car or mobile phone contract. Ask yourself: do you really need these items? What would happen if you didn’t have these items. Start to think along these lines, and by simplifying, it will be much easier to live and reach financial freedom.
Multiple stream of passive income
When most people talk about earnings, they usually mean salary or working income. This is because from a very young age and throughout our childhood we are conditioned to “study hard to get a well paid job”. It’s no wonder that many people are struggling to be financially free. Earned income is good up to a certain point in your life – usually when you don’t have any alternative ideas on how to generate other types of income. Most people who stay in this zone, remain tied to their work. They work for their money. Rather than have money work for them.
Quick question: So what generally happens when you need more income? Well, your habits will automatically have you thinking about “earning” more money. So you go out to find a second or third job. This is a sure fired way to get stressed out and becoming ill, since your have to be working to earn your money and there’s only 24 hours in any single day, so your earning potential is very limited. It’s not multiple streams of income, but rather multiple streams of passive income that is the key to financial success.