If you have not read this, then you should first.
Financial Security thinking makes it difficult for you to take risks. In Financial Freedom thinking, risks are inevitable. You only need to start small and dream big.
Financial Security thinking feels that the boss provides safety and security, after all it’s a structured and organized environment. In Financial Freedom thinking, it’s clear that we are all unsafe including the boss, and that the only respite for the chicken destined for the cooking pot is to plan its escape.
Financial Security says stash up cash ahead for retirement, ensure you have a financial nest egg that secures your family. Financial Freedom understands that cash literally depreciates, and that what you are saving today may not take care of tomorrow. Financial freedom thinking focuses on increasing passive income.
Financial Security thinking is impressed by high value active income. Financial Freedom thinking values $1 of passive income more than $10 of active income.
Our goals and aspirations shape our lives. We are as we think. There is no way you will aspire towards financial security and build to become financially free. Freedom is never stumbled upon, it is deliberately fought for. What is desirable on the long term is financial freedom. You don’t want to bank on worthless cash in the bank at 65, you want to know that month in month out, you can earn more passive income than is necessary to live your desired lifestyle.
Your goal ought to be freedom not security and you will need to sometimes risk your security to obtain freedom!
Your goal is not to amass, it’s to create sustainable passive income
Your goal is not a number, it’s a system
Your goal is not to acquire, it’s to build
Your goal is not carrying buckets, it’s building pipes.
Financial Security Mistakes
1. Taking a loan to buy personal liabilities
2. Using your capital to buy a house to live in
3. Planning to become the MD by rising through the ranks
4. Staying on one Job with one income stream.
Case Study: The Mechanic versus the Mechanical Engineer
I tell people the story of two young people who went to school at the same time, one went to school to study mechanical engineering and the other went to a nearby mechanic to learn mechanic. One studied mechanical engineering and the other one went to learn how to be a good mechanic.
When the mechanic finishes from after about 3 to 5 years, he does his freedom. The one that studied mechanical engineering looks for a company, begs to apply, begs to apply and on the day he finally gets a job, he takes a job that offers him a letter of appointment and they give him a contract, the contract tells him, you are secured in this job, we are offering you this job, this is the amount of money you will earn by the end of this twelve months. By the end of this year you will earn this amount and no more. You will resume at 8am, you close at 6pm. You lunch hour will be 1pm, you are entitled to annual leave for only two weeks. This and this is the way your life will be legislated. One goes for security, the other goes for freedom.
One is told what to do, the mechanical engineer is told what to do, the mechanic has options; he can choose where he wants to set up his shop, he can choose where he want to play, he can choose which state he wants to start. He needs to start small but he is free, He has options. One pays the price ahead; the other pays the prize latter in life. One now is looked at as the scum of society, you go out there and ask your mechanic, ask you vulcanizer, ask your carpenter even ask your washman, ask them which one of them does not own a house. Which of them is not already constructing something somewhere? He might not have the financial intelligence to know that he should rent it out to tenant, but averagely go and ask the artisan. The average artisan has either completed or he is on the second or third one. He starts small, he pays his prize now, he has options to choose from while you continue in a place where you think you are secure and living under the illusion of security. One pays the prize ahead; the other pays the prize latter on in life. The prize of security is freedom, what you pay in other to be secure is freedom. People sell their freedom for false security. Read this aloud to yourself, the paradigm you need to shift first of all is that your goal is not financial security; your goal is financial freedom.