Financially Fit Bootcamp members know the steps to Financial Fitness and how straightforward building your Freedom Generator is. In fact, when you look at the logistics, the process may even sound a little boring.
So why do you probably think Financial Fitness and investing for Cash Flow are complicated and difficult? Because the concept of Financial Freedom generally goes against what you’ve been taught about money and what’s possible in your life. You’re focusing on goals 96% of the world doesn’t understand.
And just as with any goal, mindset is key—especially when you’re going against the prevailing culture.
You know the steps to Financial Fitness. Now, let’s look at how you can find joy in the effort.
Step #1: Start Paying Yourself First
Paying Yourself First is pretty easy. You’re setting aside money for yourself before anything else. Automatically move a set amount of your income each week or month into a separate bank account devoted to your Future Self. Before you even think about paying bills or living expenses.
How to Love It
This might be the easiest to love step in the journey to Financial Fitness. Here’s what to keep in mind:
- See yourself as valuable and worthy of investing in.
- With every deposit you make, know (and feel) that you’re shifting your long-held habits of putting yourself second (or worse—not taking care of yourself at all).
- Each time you make a deposit into this bank account, imagine you’re:
- An angel investor funding the vision of your inner entrepreneur.
- A generous patron of your inner artist.
- Altruistically paying for the retirement of your senior self.
- Donating money to the ideal self you want to become—that just needs someone to believe in them.
Step #2: Learn To Live Within Your Means
To build reach Financial Freedom you have to spend less money than you earn. And when you first get started that can mean substantial restrictions on what you buy. For now.
How to Love It
Understandably, focusing on what you don’t have inspires feelings of resistance and resentment. Shifting your perspective here is key:
- Practice feeling gratitude for the things you can afford. Find things to savor and appreciate about the food that fits your budget, the clothes you can afford, the car you currently drive (or the public transit you take) and the home you currently dwell in. No matter how spartan these things may be, there’s always something to appreciate.
- Switch up how you prioritize your spending. How you spend what remains is your decision. Find what you can get by with less of so you can spend more on what makes you happy.
- Foster feelings of anticipation and excitement about the luxuries you want. Know that as you implement and master these principles, the means to afford your dreams becomes inevitable.
- If sticking to your plan is still difficult, try to turn the process of bargain hunting into a game. You’ll be surprised how many good deals you can find on perceived “luxuries” while still Living Within Your Means.
Step #3: Learn To Protect Yourself
Sometimes things go wrong. Don’t expect the worst, but be prepared. Your Security Buffer protects your future from emergencies and disasters and keeps you on track should something unexpected happen.
Similarly, when you accrue assets, you need to invest in insurance to protect them.
How to love it
No one likes imagining what they’ll do if disaster strikes, but no one has ever regretted preparing for it.
Here are some things to try:
- Imagine your three month Security Buffer and insurance premiums as a magical shield around you and your life. If something bad happens, you have time to collect yourself and plan a strategy instead of immediately jumping into a panicked reaction.
- There’s a reason security is a major industry. Imagine yourself as one of the VIPs, priceless pieces of classical art, fortress-like properties or whatever else benefits from security. Affirm that you and your life are worthy of being protected.
Step #4: Put Your Money To Work For You
Once you have the first three steps down, start investing in your Freedom Generator. This is the vehicle you’ll use to create consistent Cash Flow and buy your time back.
How to love it
With the first three steps completed, I promise you’ll enjoy this part of your journey to Financial Freedom. Watching your Freedom Generator grow is incredibly rewarding.
Here’s what to keep in mind:
- The primary focus of the Freedom Generator is the Income Generator—the vehicle by which your earn passive income. Invest in what works best for you, keeping in mind that the value of any investment fluctuates. You’re looking for opportunities to create Cash Flow without exchanging your time for money.
- Creating the Income Generator is how you start living your best life. Relish it.
What are some of the ways you’ve kept your journey to Financial Freedom joyful? Feel free to share in the comments below!
The views and opinions expressed are those of the guest author and do not necessarily reflect the views and opinions of MindShift.money.
image credit: Bigstock/Flynt
Dustin Clendenen is a big picture thinker with an obsessive attention to detail. As a writer, editor and publicist, Dustin passionately promotes social good, entrepreneurship and financial literacy. He’s based in Los Angeles, CA and studied writing at Columbia College Chicago.