The first steps you should take towards financial freedom are very easy but require a great deal of self-reflection.
We are not financial advisors, but this is what we did and it really helped leap us forward.
We have a much different outlook on life – and finances – than the majority of people. I think that it stems from the realization that money is not the answer to everything. Sure, money helps make things more comfortable. It even allows you to experience things you wouldn’t be able to experience otherwise. But it is also an exchange of time. Money is not the real currency.
In order to have an exchange of anything, you have to give something in order to receive something. This is especially true when it comes to money.
I challenge you to think about your job or career as an exchange for money rather than a job or career.
When you think of it this way, I think the money you receive in exchange for your time becomes much more valuable to you. It also makes you think about spending that money in a way that you may never have thought of beforehand.
I’m sure you have a big purchase in mind. Maybe it’s a new boat, a computer, or a piece of jewelry. Maybe you just want a new outfit to wear when you are going out with your friends this weekend. I implore you to take a look at that purchase and think about how much time you will be required to exchange in order to make the purchase. DO not look at it in terms of “I need to spend XX to buy that.” Once you’re able to re-train how you look at money, I believe you will see your spending cut back significantly. You will start looking at things you need rather than the things you want. Now, don’t get me wrong, I’m not saying don’t treat yourself every once in a while. What I am saying, however, is that we need to be more mindful of how we spend our time (money).
Time is the real currency here. Money is just a symbolic representation of your time.
There just something that sounds incredibly eye-popping about the phrase “I need to dedicate a year of my time to purchase that sports car.” A year. Not $75,000 or whatever that year’s worth of salary equates to. A year of your working life. Approximately 2,000 hours of your life dedicated to that one purchase. Is it worth it? If yes, go for it! If you cringe at that thought, you should probably re-think it. Take those 2,000 hours of your life back and re-allocate them towards something else.
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