5 Financial Freedom Traps to Avoid

#1 Working Too Much

One of the first traps I fell into when I was working was working too much.

I didn’t have time to play, have fun and enjoy my life.

I also didn’t have time to strategize financial freedom.

Sometimes I thought I had to work a lot.

In my case it wasn’t for money, but it was for prestige.

I was a PhD student and I was working towards my PhD.

When I finally took time off for myself, I realized that I didn’t want to get a PhD in Linguistics after all.

I wanted to raise a family, surf and be an investor.

It wasn’t an easy transition, but I have never gone back to being a workaholic again.

Now I have plenty of free time, and I do what I love.

#2 Living Paycheck to Paycheck

I used to live paycheck to paycheck, all my money would go towards my bills and I had no savings and investments.

When I started paying myself first and budgeting my money, then I finally stopped living paycheck to paycheck.

I actually quit my job, December 23, 2016 was my last day at a job.

I still have a paycheck, but it is one I pay from my business. And I have investments that also pay me, and I am constantly growing those investments.

I have savings, multiple savings.

#3 Not Paying Yourself First or At All

I used to spend a lot of time spending money on stuff, trips, books, rent and food.

It never occurred to me that I should invest money to create financial freedom.

When I finally learned that I could do that, and all I had to do was pay myself first, then I started doing it on faith.

I would take $1/day and divide it up between jars, using T Harv Eker’s jar system, from his book Secrets of the Millionaire Mind.

The first jar was my financial freedom jar, and I would put 10%, so 10 cents, into that jar everyday first.

T Harv Eker said it was the habit that counts, not the money.

So I followed the habit.

And I gradually started actually taking 10%, and not 15% of my income and putting it into savings, property, stocks, bonds and other investments for my freedom.

I now make passive income from investments.

#4 Not Having a Written Financial Plan

It’s important to have a written plan, and I had no plan at all for most of my life.

I only recently created a written plan in 2019.

If you don’t have one, it’s time for you to make one. CLICK HERE for some templates and ideas for writing one.

You can also get a fiduciary advisor to help you make one.

#5 Blaming Others For Your Financial Problems

We have a roommate renting from us, and sometimes he blames COVID, the economy, accidents, all sorts of things, for his financial problems.

I’ve had people blame needing an attorney, or a medical issue, or their car breaking down for their financial problems.

I used to blame my parents for not teaching me about money. I even blamed the school system for the same reason.

Blaming others for your financial problems won’t make you financially free. It will just distract you from it.

The key is to take actions to become financially free. CLICK HERE if you want more details on the actions to take.