When one googles "Financial Freedom", the website Four Steps to Financial Freedom will appear as one of the top websites. This website is apparently owned by a certain Sean Toh.
It is quite amazing. How did he capture the keyword financial freedom such that his website appears top on the list when the word "financial freedom" is googled?
Is his website interesting to read? Was there any useful information about financial freedom?
I must admit that the website has a lot of words like "financial freedom" and "wealth" but overall, the website does not provide any useful information on the four steps to Financial Freedom. Unless you buy his product of course
So today, SgFinancialFreedom is offering his very own thoughts on what the Four Steps to Financial Freedom should be:
Step 1. Earn Money
It is impossible to start your journey to become financially free if you do not start earning money. Income can come from two sources: Active and Passive.
Active income is earned from your day job. Passive income is earned without you having to do anything. An example of passive income is dividends from stocks that you earn.
Explore increasing your income through both active and passive sources.
Step 2. Save Money
The second step is simple. You just need to make sure that you spend much less than the money you are earning. A good start will be to save 10% of your income.
For those who are more hungry, you can save as much as 50% of your income.
Step 3. Buy Assets
Assets put money into your pocket while liabilities take money out of your pocket.
To become rich, you need to acquire assets like stocks, real estate, businesses. This will help increase your income.
Step 4. Repeat Steps 1 to 3
I know this sounds lame. But it isn't. Simply work through Steps 1 to 3 repeatedly and you will see your income increase, your savings increase and your assets slowly build up over time.
Read Related Articles:
1. Top 10 Money Saving Tips
2. Save Electricity, Save Money
3. Retire Young, Retire Rich
4. 3 Key Lessons from Rich Dad Poor Dad
5. 3 Sources of Passive Income
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