It was 3 years ago where I start to see the importance of money, time and all the bullshit.
In order to plan the steps to achieve Financial Independence(FI), I have to first define what is my maximum spending amount a month that I think is sufficient (Physically, Emotionally, Spiritually).
The figure would be $10k a month
That number includes – housing rental, bills, parents allowance and all the other materialistic crap.
The next step(2nd) is to figure out the formula to achieve that amount (which I will call it FI). Obviously, the most popular theory is to study hard(Academic knowledge) and work your balls off in order to reach a certain position(fight with financial instability and the time wasted) and KACHING $$$. Being young and ambitious, I choose to go against that.
K + P.I = FI
Knowledge(K) + Passive Income (P.I) = Financial Independence(FI)
Take for example, if you only have the knowledge to make cakes but you would love to travel, buy fanciful cars and all the other nonsenses. What would you do? The popular theory would be to gain a small knowledge and to sell it for a certain price and at a certain quantity and continue doing so to achieve a bigger payout. What if you have the knowledge to patent your recipe (might be a bad analogy but hopefully you get me) or create a subscription revenue model for your consumers or get even more KNOWLEDGE on how you can make it passive. All in all, the most important thing is to obtain MORE KNOWLEDGE on how to make the end dollar $$ to generate more P.I for you.
Back to me, only having knowledge on the forex market and making pennies from the courses that I give…. I have to definitely increase my knowledge on how I could make this more passive than it is and on top of that to find ways and proven methodologies(Not MLM) on how I can increase my P.I. ….In order to get $120k ($10k x 12) per annum, I would need to invest about $1.2million which will pay me about 10% per annum.
In summary of what I would do… Read up books on dividend giving assets(might be able to invest not only for dividends but real capital gains), explore business opportunities (being a shareholder) or even start-up my own business (that won’t disrupt my trading hours). Always learning from others and the world.
The last step is to Act(3rd) (very obvious) but the last step is sometimes the hardest. When the time comes, it is only humane when fears come in and stop you from doing what is best for yourself. Then again, Is it the lack of knowledge/understanding on what you’re doing that caused it? or is it the advice from those smellywanks (Can be your traditional parents as well) that have yet to achieve anything that is stopping you?
“Dreams will only be Ideas if you start writing them down on a paper, Knowledge will only be a skill if you start using them”