In this blog post, I’ll share my thoughts on the topic of becoming rich or becoming financially independent first. A couple of years ago, I thought that the way to freedom was through working hard, saving money and then stop working. Now, my approach to freedom is a little bit different.
What Do You Think Becoming Rich Will Give You?
I believe that this is an important question to ask yourself. I think that you’ll find that it’s not necessarily the amount of money in the bank that you’re after. For us, the answer is that we want the lifestyle that being rich would give us. But more importantly, we want to be free. With free, I mean that we work because we want to and not because we have too.
If you read our story, you’ll notice that we were first and foremost focused on becoming rich. We had a cold calling business that might have been able to make us millions if we continued for several years. Yesterday, I released a blog post on building assets. The business that we were starting that was doing cold calls was not an asset. Why? Well, we were the assets. If we stopped working, we’d stop making money. Yes, you could argue that we could have hired people and scaled up. But the truth is that it would have been very expensive since the taxes in Sweden are not to play with. Cold calling businesses are also known for having high staff turnover which would have made it painful to constantly have to train new people. So, what did we do instead?
Becoming Financially Independent First
We focused on building assets. Now, our first thought was that we’re going to create assets by investing in real estate. Later, we decided to put our attention on building an online business instead. The great thing about an online business is that you can leverage technology and outsourcing. Let’s take the example of hiring a person in Sweden vs. hiring a person, in let’s say, the Philippines:
In Sweden, you need to be prepared to pay out a salary of $2330 per month if you’re hiring the person for full time. With taxes and insurance that would end up to be around $3729 per month.
In the Philippines, a salary of $3.5 per hour is over average. So that would end up being around $560 per month. No taxes, no insurance and no worries about the employee using the law against you.
To me, it’s a no-brainer. Building a business online is the way to go and more importantly, creating assets that can free up your time.
The Dream To Retire And Live On The Beach
Let’s say that the dream that being rich will give you is to retire and live on the beach. The classical example yet it’s something that a lot of people want. Well, if that happens to be your dream, then you’re lucky if you’re willing to move. If you earn in dollars and spend in for example Bath (Thailand), then you’ll discover how rich you already are. It would probably be more than enough to make $1000 a month and be able to live a good life in another country. Unfortunately for us, it’s not our goal right now so we have to make a lot more. But still, it proves the point that becoming rich first does not necessarily have to be the only way to live a “rich lifestyle”.
By Becoming Financially Independent First You Can Focus More On Becoming Rich
Obviously, this blog post is suggesting that you become financially independent first. We could be somewhat biased on this topic but at least think about the ideas that are being presented. Let’s say you’re working at a job right now. You’ve decided that it’s not the freedom lifestyle that you’re after. You want to become filthy rich and spend lavishly on cars, watches or whatever. Well, depending on where you’re working, your income might be fixed unless you’re working with sales. So you’re most likely going to be rich by investing, coming up with an invention, or starting your own business. I would say that the best way to get there fast is to start a business. Well, spending 2 hours per day on building a million dollar business might not be enough. Therefore, my suggestion is that you start looking for ways that have allowed other people to free up their time first.
We got more time through self-publishing, but you might decide to do something else. I recommend that you look for ways that work for other people, don’t try to reinvent the wheel. For example, I know a lot of people are doing well with Amazon merch (selling print on demand t-shirts).
“Not Everything is About Money.”
Some people might think that this blog post was very money based. Well, the truth is that money is necessary. Most people spend the majority of their awake time to acquire it so you might as well master it. Personally, I’m more interested in freedom than stuff. Money will buy you both, so it’s safe to say that most people would gladly accept some more of it. Most of the wealthy people that I’ve studied seem to have been focused on building assets. So becoming financially independent and becoming rich does not have to be two separate things. In fact, financial independent should be your stepping stone to riches. Create some kind of money machine that can create time freedom.
If you had to choose between these two options, what would it be: work for money or let money work for you? I’ll choose the latter, what about you? Subscribe to this blog on the right side if you’re reading on a computer. If you’re reading on a mobile device, just scroll down. We’ll be giving you more tips and ideas on creating assets and freedom based businesses. Thank you and have a great day!