We always talk about how we want to make a lot of money in our businesses, but that’s not really what we’re after, is it? Making a lot of money is great, but the true prize is financial independence. When you become financially independent, you are able to experience life in a whole new way.
Removing the anxiety, worry, and insecurity related to money is one of the greatest gifts you can give yourself. Financial independence is freedom. Here’s how to get there:
1. Believe that it’s possible
So many of us are programmed to believe that money will always be struggle and there will never be enough of it. This belief pervades our culture throughout all socioeconomic groups. The truth is, you can achieve a level of financial independence that will allow you the peace of mind you desire, but first you have to recognize that it’s actually possible for you. Financial independence is not just something for other people. You have to stay committed to a strong belief in yourself, and push away all doubt. Entrepreneurs, especially, need downright stubborn confidence that you can reach your financial goals. The Real Housewives of NYC laughed at poor, broke little Bethenny and her little business, but she believed it was possible. Who's laughing now?
2. Get real with your money
Many people who struggle financially live in la la land when it comes to their money. They have no idea how much they have or how much they’re spending. They’d rather not look at what’s coming in and what’s going out because it causes anxiety. Unless you have clarity around your income and expenses, you’ll never be able to achieve financial freedom. You have to face facts head on. Otherwise, your business and your personal financial situation remain in constant jeopardy. Hire experts to help you understand how to best protect your assets and grow your wealth.
3. Stop spending like a trust fund brat (even if you are one)
We all love fabulous stuff – the house, the car, the jewelry, the designer clothes. The problem is, many people overextend themselves. They aren’t mindful about their spending, because they just want, want, want, and convince themselves that they deserve it. In actuality, what you deserve is freedom. Retail therapy is only a temporary fix, while financial independence can last a lifetime if you're smart. As an entrepreneur, you need to get really smart and disciplined about your spending habits. Splurge and pamper yourself on occasion, but don’t be a slave to your spending habits.
4. Eliminate unnecessary debt
You can’t be financially independent and strapped with debt. It’s impossible. Debt is a kind of slavery – remember sharecropping? (look it up) While, for most of us, debt cannot and probably should not be avoided entirely, you have to get rid of high-interest, money sucking debt. Stop crying about it, make a plan, and pay it down. The sooner you start, the sooner you’ll make progress, and the sooner you’ll put it behind you. It won’t be easy or fun, but it has to be done if you want to be financially independent.
5. Make more money!
Obviously. If you want to taste financial freedom, you’ll have to make more money. The good news is, you’re a business owner, so you essentially get to write your own ticket. Unlike employees who are at the whim of others’ decisions, you get to decide how much money you make in your business. If you’re not happy with your current revenue and income, it’s up to you to work smarter and harder to increase your numbers. Hire a coach to help you figure out how to grow into the money goals of your dreams.
Entrepreneurs take on a lot of financial risk, but the upsides trump the liability. By owning your own business, you have the opportunity to achieve financial freedom like no other member of our society. There’s no reason to stay stuck when you can be free.
What is the number one thing preventing you from financial freedom right now?
