What can you do right now to make this year the best year financially that you've ever had? And what is the one thing that makes some people achieve financial freedom faster than others? Learn about the simple mindset shift that will change the way you think about financial freedom and a quick mental exercise you can do to make that shift right now.
There is a hidden danger that most people don’t even realize is a risk to their wealth and it’s the status quo. The slow slide of entropy limits your potential for growth. Brian made a commitment to himself a few years ago to get into better shape, and as much as the actual exercise and nutrition helped him lose weight, it was breaking his routine and changing things up that really unlocked things for him. The mindset shift from being someone “who doesn’t work out” to someone “who does work out” was a monumental change. Even a small mindset shift can make a difference when followed up with action. Many people dream but most never execute. For the majority of the things in life, the only true way to fail is to give up. The problem is not usually the action, it’s in the commitment to taking action. It’s easier to do something 100% than it is to do it 95%. When you’re not committed you will always use the remaining 5% to make excuses. Shifting your mindset is the first step to financial freedom. A simple exercise of imagining what your life would be like if you had an extra $100 a month, $1000 a month, $10,000 a month will help you visualize a more secure life. The key to the exercise is in thinking at what dollar amount do you stop thinking about yourself and start thinking about helping other people. What limits your ability to retire, to give, and to help others is the absence of financial security. In the absence of financial security, there's no confidence. For the average retiree/investor, they are usually focused on rates of return, paying off debts, and other peripheral things. What really matters is income. There are two stages of life: when you work to earn a paycheck to support your lifestyle, and when you have income from your assets to support your lifestyle. The sooner you get to the second stage, the closer you are to financial freedom. The mindset shift has to be a renewed focus on creating income sources. By focusing on how much income your assets are generating, you have a true measurement of how close you are to achieving financial freedom status and the ability to give and contribute to those around you. For most people, when they begin this process the amount they get from assets is zero. Their portfolios are usually designed to grow, not to generate an income. One of the biggest mistakes people make in retirement is spending down their assets and resources instead of finding an income-generating asset to support their spending needs. The entire goal of all financial planning is to use assets to generate income. The more assets you keep and grow, the more income you'll have coming in. Make adjustments to your portfolio to have income-generating assets, because the sooner you build your passive income sources, the sooner you will have financial freedom.
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