Foundations to Financial Freedom
Achieving financial freedom is not a distant dream but a realistic goal that can be reached with the right strategies and mindset. By building a strong foundation and creating multiple streams of income, you can pave your way to financial independence. Here’s a comprehensive guide to help you get started on this journey.
1. Mindset: You Are the Business
First and foremost, you need to understand that you are your own business. Your mindset should be focused on building and managing multiple revenue streams. Here's how you can think like a business:
Diverse Revenue Streams: Don’t rely on just one source of income. Aim to have multiple streams such as earned income, dividend income, rental income, and more.
Cash Flow Management: Ensure that your revenue streams are generating consistent cash flow and that you have steady cash flow and savings on hand to account for fluctuations.
Investing in Assets: Consider buying or building assets that will generate income over time, such as rental properties or businesses.
Long-Term Thinking: Play the long game and be patient. Building wealth takes time and perseverance.
2. Financial Foundation
Before you can start building wealth, you need to establish a strong financial foundation.
Get Out of Financial Fight or Flight: Calm your financial nerves and avoid impulsive financial decisions. See Episode 003 of Old Money Podcast
Pay Off Debt: Focus on eliminating consumer debt, especially credit card debt. You can’t build wealth if you’re burdened by high-interest debt.
Start Where You Are: Don’t be ashamed of your current financial situation. Everyone starts somewhere.
3. Create Wealth
Understand that your paycheck alone is unlikely to make you wealthy. You need to build something more substantial.
Build Something: Create a business, invest in real estate, or develop a product. The key is to create something that can generate value beyond your regular salary. You may work in this business and pay yourself a salary, but you are creating value BEYOND what you are earning for your salary in the value of the business.
4. Keep It & Grow It
Making money is only half the battle. You need to learn how to keep and grow your wealth.
Money Management: Develop good money management skills to ensure your wealth grows. This means spending less than you earn, saving, and investing. Speaking of…
Investments: Learn about various investment options and how to grow your money through smart investing. You will never become wealthy by just earning a paycheck. You must put your money to work for you!
5. Enjoy It
Financial freedom is not just about saving and investing; it's also about enjoying the fruits of your labor. Make sure to balance your financial goals with enjoying life. Living well is a big part of the Old Money lifestyle. You need to ensure you don’t live a misery experience, scrimping & saving- that is not a wealthy life!
6. Protect It
Protecting your wealth is crucial to maintaining financial freedom.
Wills and Trusts: Ensure your assets are protected and your estate is planned. You want to make sure your money goes where you want it to go when the time comes.
Minimize Fees: Avoid giving away money in unnecessary fees to financial advisors. Look for low cost investments.
Prenups: Protect your assets in personal relationships- marriage is not just romantic, it is a business partnership. I would never start a business with a co-CEO without an operator agreement, so why would you expect me to do that in my marriage!
What the Wealthy Know
The wealthy understand the importance of creating multiple streams of income. According to the IRS, most millionaires have seven income streams:
Dividend Income: Earnings from stocks.
Earned Income: Salaries or wages from employment.
Rental Income: Profits from rental properties.
Royalties: Payments for the use of their creations.
Capital Gains: Profits from selling appreciated assets.
Business Profits: Earnings from businesses they own.
Interest: Income from savings, CDs, bonds, or other lending activities.
New Money Magic: The Creator Economy
The modern world offers numerous ways to generate additional income, especially through the creator economy. Here are some innovative ways to create multiple income streams:
Invest in Businesses: You can run your own Shark Tank or get involved from an investor standpoint… once you have cut your teeth in business & know what you’re doing.
Gig Economy: Use platforms like Airbnb, Turo, Instacart to generate extra income.
Digital Products: Create and sell courses, printables, or subscriptions.
Virtual Assistance: Offer your skills as a virtual assistant.
Community Creation: Build memberships or use platforms like Patreon.
Content Creation: Become a UGC creator or influencer on platforms like TikTok or OnlyFans.
Advice to College Students
For those just starting out, here’s some advice:
Gain Experience: Seek opportunities that provide experience and build your skillset.
Create Your Own Path: Don’t be afraid to start your own ventures. The earlier you start, the more you can learn and grow.
Focus on your Network: Manage and maintain connections with people you meet – the ones you meet in college will be in business right along side you 5, 10, 15 years from now!
My Business Model
In my own business, I’ve created multiple streams of income:
Retainer Clients: Steady, predictable income.
Project Work: One-off projects like branding and website design.
Strategy Intensives: High-value consulting sessions.
Referrals: Collaborations and referrals to other agencies.
By diversifying income sources and building a strong financial foundation, you can set yourself on the path to financial freedom. Remember, it’s not about chasing every opportunity but strategically building and managing multiple streams of income. Start where you are, and with patience and persistence, you can achieve financial independence.
