As we continue to face uncertain economic times, it’s imperative to be diligent about money management. Now, more than ever, being intentional about our spending habits is critical.
Long gone are the days of mindless discretionary spending.
We are in an era where creating and maintaining a family budget is necessary for weathering these financial turbulences. Furthermore, this attention to our money is required as we all seek to attain financial freedom.
I believe that financial freedom is the ability to have a choice.
It’s the ability to choose and experience the kind of life that you want to have. It is choosing our lifestyle, how and where we travel, the home that we live in, how we give, and so much more.
Being a good money manager is directly related to one’s ability to attain financial freedom; however, it’s not the only factor in the equation.
To attain financial freedom, you must know the principle of how wealth building works.
I call it the money cycle.
This money cycle consists of three factors: Make money, manage your money, and multiply your money.
The ability to make money is the key to survival. Money is required for every facet of life.
However, you must be strategic about how you do this. Ideally, you want to make money in a way that requires the least amount of time and effort.
This isn’t a plug for any get rich quick scheme, instead, it is a message to promote passive income.
Passive income is money that can be made without requiring your presence. Ultimately, if you can master passive income and develop multiple sources of it, you’ve tapped into the secret of the wealthy.
It is the ingredient in wealth building that allows you to have time freedom.
Here are a few examples of passive income sources:
Rental income from properties
Interest income from bank accounts or loans
Dividend income from investments
Royalty income from an intellectual property
Profit income from passive sales of products
All of these are ways that you can begin generating passive income to help you attain financial freedom.
Some require more of an upfront investment than others, but they’re all options for anyone who wants to increase their income.
Which of these have you implemented into your financial plan?
