Every Entrepreneur’s Dream Is To Achieve Financial Freedom
For some, the idea to achieve financial freedom is never in reach but for the select few of motivated and highly driven entrepreneurs, financial freedom is just around the corner.
It can be as simple as saving and investing your money wisely.
In this article, we’ll delve into the savings world to learn how to save money and to generate an online business savings plan by setting 3 simple goals.
Develop a Savings Habit
In 2005 when I first started my online business I was given a book from a family member which is “Rich Dad Poor Dad” and it’s written by Robert T. Kiyosaki.
The author, Robert speaks of his 2 Dads, one his real father and other his friend Mike’s father.
The story goes through pretty much Robert’s life and having his Rich Dad with a powerful money mindset, being as his mentor, who taught him how to save money. His Poor Dad had a poor money mindset and was a school principal.
The reason why he called them his rich dad and his poor dad was because his real dad retired poor and his rich dad retired very rich.
Robert was exposed to two different aspects of life. One, where he was taught just to live average and be average and the second to be more and to achieve more in order to become more.
Poor Dad Teachings
- You need to finish school.
- Then you’ll need to find a secure job.
- Your boss will tell you that you’ll need to show up exactly on time or you’ll receive a punishment for being late.
- The employer dictates your lunch break time.
- There is set homework or tasks to complete by a certain time frame.
- To do well you must start from the bottom until you’re promoted to manager.
- You must work 9 til 5, Monday to Friday and have the weekends off.
- You’ll save enough money in your 401K (Super) account to retire comfortably on at retirement age.
Rich Dad Teachings
- Buy assets and not liabilities.
- You cannot get rich if you work for others, no matter how much the salary may be.
- If you want to be rich, an employee mentality won’t get you there. You need to be the employer and have your own business to dictate what you are worth.
- Start your own business and have multiple streams of income.
- You cannot be rich unless your willing to take risks.
- It’s not how much money you make. It’s how much money you keep.
The book is an insightful read because it takes you through how you should look at saving money.
How to save from your wages by putting some of that money aside and eventually over time it’ll start building up.
How to look at getting more assets (Streams of income) and how not to spend so much money on Liabilities (Purchases that continue to cost you money.)
The more streams of income that you have from acquiring assets, the more the flow of money will come into your life.
From those assets is where you’ll start to build your wealth that way.
Achieve Financial Freedom from looking at eliminating all debt
Develop a habit of saving and paying off credit cards or a huge bill that you have owing first.
Having a detailed action plan in order to save money will help to get dept paid off quickly.
It’s suggested to seek a financial adviser or an accountant that can work out your incoming and outgoing expenses to help plan to finalize all of your dept.
Once you’ve got your dept paid off, then you can look at going back to goal number one having a savings habit and keep continuing to build your wealth.
Is to have multiple streams of income.
Rich people know the importance of having multiple flows of income coming into your life, so when you’re not working or on holiday, there is still money flowing into your bank account.
There are automated systems that can be setup to do the sales process. These systems are almost set and forget systems, getting money and to setup to do all of the work for you.
Automation programs like a sales funnel, chat bots and email autoresponders can be used with marketplace programs like JVZoo or Warrior Plus where you can leverage other people’s products in order to make sales.
These products and services are sold electronically, worldwide without you having to be too involved with the process so you can have it so it’s automated and it’s bringing in money on a consistent basis for you.
This is called Affiliate Marketing and it can be a fast way of building your wealth and getting closer to financial freedom.
Achieve Financial Freedom With The Income Account Flow Method
When starting an online business, one of the hardest struggles for any new entrepreneur is controlling the flow of income.
To do any sort of advertising for the business, there needs to be a control of funds for living expenses and business expenses.
Once income starts flowing into the business then that income can be divided and spent on the next stream of income for the business.
How The Income Account Flow Method Works
There are 3 accounts that you need to make.
1. First account for your business.
2. Second account for savings.
3. Third account for everyday expenses.
Income Sources To Achieve Financial Freedom
The first income source, if you’re just starting out may come from a 9 til 5 job full-time or part-time job and this is perfectly alright because you need money to survive and money to start an online business.
The money made from this income source will be divided up into the first and third account. Never the second account.
The second income source is money made from your online business that will be divided up for the first and second accounts.
The business account is to store your money to be used only for any business related expenses such as stationary, advertising, and accounting purchases.
When you’re just starting out this account can also be used for storing your taxes but if you’re not a good saver then I suggest storing your business tax money in the savings account.
Cashflow can be easily managed by having a separate bank account just like this to use for business purposes only.
If you’re a sole trader, it’s advisable to have a business bank account but it’s not compulsory. If you’ve setup a company, it’s mandatory to have a dedicated business bank account as your business is legally a separate entity.
It’s suggested to speak to your bank representative for advice.
This bank account does exactly as the name suggest, it’s a savings account.
This is where you would store money away for safe keeping and to spend when necessary for mainly business but also personal expenses.
When getting a savings account, you can shop around and find a the best high interest savings account to get rewarded for keeping you money in your account.
Here a 5 suggested questions to ask your bank when shopping around for the best account:
- What interest rate does the savings account pay?
(Paid daily or monthly? is there an average and maximum rate or a fixed interest rate?)
- What are the fees?
(Monthly account fees? Branch deposit fees? Transaction fees? EFTPOS fees? ATM withdrawal fees? etc.)
- How easily accessible is the money?
(Withdrawals by bank account only or EFTPOS/Visa/Mastercard available?)
- Do you get free transaction fees?
(Find an account with no transaction fees as it’s an unnecessary drain on your savings account.)
- What savings account features do you have?
(Online security features, account conditions such as opening balance and the maximum balance for the account.)
Many of these banks will have Personal Financial Calculators to add up your budget, set your savings goals, and to track your progress.
Make sure to compare savings accounts and seek professional financial advice.
Everyday Expenses Account
This account is where your 9 til 5 job will store your money. From this bank account you can divide your expenses to pay for bills and general living expenses as well as dividing up some of the money to use for your business.
This is where you can budget your paycheck and work out which percentage you would like to divide to living, business and savings.
The 50 20 30 Rule
The budgeting rule has come from Senator Elizabeth Warren‘s popular financial book called “All Your Worth: The Ultimate Lifetime Money Plan”.
The book explains to divide your after-tax income, spending 50% on needs, 30% on wants, while allocating 20% to your savings account.
Achieve Financial Freedom Today
Financial freedom is about taking accountability and complete ownership of your finances.
When you reach financial freedom you’ll have a dependable cash flow that allows you to live the life that you want.
With that freedom you won’t have to worry about bills & sudden unforeseen expenses.
To reach your goal, you’ll need to increase your income and this can come from taking on a side hustle and plan for a long-term financial strategy.
Once your goals are set, there will be money saved for the present day and retirement.
Get Some Training To Achieve Financial Freedom Today!