Today we are talking about 5 Baby Steps to Financial Freedom.

Maybe you have no idea how you can ever be financially free, because you are so bogged down with debt or other money problems.

Well, wouldn’t it be great to take baby steps?

Just to go in the right direction?

Isn’t it great to know that they baby steps will create the forward movement you need to change your financial life?

Here they are:

#1 Baby Step to Financial Freedom – Read and understand what it is to be financially free below:

Financial Freedom is when your passive income (income generated from investments) is equal to or greater than your expenses.

For example, say you have a rental property run by a manager that makes you $500/month, and you have stocks that pay you $500/month in dividends, and you also have a book you wrote that pays you $1,000/month in royalties.

So you make a total of $2,000/month in passive income.  This is money that you don’t have to work for, it comes passively.

Now you also pay expenses like rent or mortgage for where you live, your food and clothes, medical insurance, car payments and gas, and so on.

If your expenses are $1,500/month, then you are financially free!

If your expenses are $2,000/month, then you are financially free!

If your expenses are $3,000/month, then you are not financially free yet, but if you reduce your expenses and/or increase your passive income, you will be!

Understand?

Baby Step #2 Write a Goal for Your Financial Freedom

The second step is to write a statement about when you will be financially free, and how much passive income you will be making.

Here is an example:

On or before January 1st, 2021, I am making $3,000/month in passive income and I am financially free.

Go ahead and write your own goal down on paper or in your computer or other device.

Baby Step #3 Pay Yourself First

The key to financial freedom is to put yourself first in line to get paid in your life.

This will show that you value yourself.

That you can take care of yourself.

You do this by putting aside some of all of the money you make into your own investment account.

You can call it a Financial Freedom account.  This is what T Harv Eker calls it in Secrets of the Millionaire Mind.

Or you can call it an immortality account.  This is what John D Martini calls it in How to Make One Hell of a Profit and Still Get to Heaven.

Baby Step #4 Schedule a time every month to Check On Your Financial Freedom Goal

Schedule in your calendar now, when are you going to take about an hour, to re-assess your financial freedom goal?

Baby Step #5 Make Your First Passive Income Stream

The easiest passive income investment is a high yield savings account.

Find one online.

They are pretty easy to open.

Right now they pay about 1%.

Put that money you are paying yourself first here.

The interest it pays is your first passive income stream!