Many of us need to earn money with wage earning jobs to have shelter, transportation, and food. If we do really well we even have money for recreational activities and to pursue our interests.
How do you get from wage earning to financial freedom (the freedom to choose how you spend your time and if/how you earn money)?
There are four simple steps. The journey may take years, but the sooner you get started the sooner you arrive.
- Wage Earning-income from making money for someone else
- Self-Employment-income from making money for yourself
- Passive Income-income from businesses that make money for you (with little or no time required from you)
- Investments-income from money making money
Going from step to step usually will more than one step at a time. The percentage of time devoted to each step should gradually have the higher number steps with the maximum time devoted to it.
For me, the first step consumes the most of my time. My first goal is to get to the point I have one wage earning job instead of two. That means I must excel in one of them to a degree I can earn sufficient income to meet basic needs and a little extra. While I work on that goal, I also work on my self-employment (income from photography, artwork, and writing) and my passive income (blogs and websites). I have some money invested through work retirement plans that is making money for me as well as being matched (free money!) by my employer. I just started buying Wal-Mart stock since Wal-Mart matches a percentage of my investment into stock.
Evaluate where you are, choose where you want to be, and get a plan of action to get there.