Financial Freedom Manifesto

Let me begin by saying that this money-festo is not for everyone. If you find the raw glorification of money offensive, please feel free to skip the rest of this post. I will have something different for you tomorrow, but I had to share this with a dear friend.

Some people say money cannot buy happiness. I believe that people who say that, and are in good health don’t know where to shop. From where I am sitting right now, I could do with more money. I happen to know a lot of my friends who would do with more money and are not ashamed to admit it. I dedicate this post to one such friend.

If you hate the thought of struggling financially in life, and are willing to do something about it, I dedicate this post to you too. The lack of money is the root of all problems (I could be wrong). Maybe next time I will be preaching a different gospel, but let me get this out of my heart.

Lack of money steals something of value from human beings. And that thing is called freedom. I want to inspire you to regain your freedom. Freedom to be who you are and become who you want to become. Freedom to be where you want to be, hang out with whoever you want or be whatever you crave to be.

What is Freedom?

Freedom is having control of your life, your time, your activities and your dreams. Freedom is having nobody stopping you from achieving your purpose and mission in life. It is owning your destiny. It is running away from entrapment and captivity. You are free when you own your life and become the captain of your ship.

According to the philosopher Isaiah Berlin, there is an important distinction between “freedom from” and “freedom to“. I will not do injustice to his great work and pretend I fully understood what he was talking about. But I will attempt to paraphrase it in a way that is meaningful to you. Being financially free will help you be free from and free to.

Freedom From

• Being free from abuse and terror. If you are being abused or terrorized by your spouse, boss, etc for lack of money, then you need to become free from that form of abuse.
• Freedom from fear and anxiety.
• Freedom from punishment for past mistakes.
• Freedom from boredom and restraint. If you are financially free, you can do whatever you want. You will have options. Seek ye money and freedom shall be yours.
• Freedom from worrying about bills, deadlines and work pressures.

Freedom To

• Freedom to achieve your goals and aspirations.
• Freedom to travel to exotic destinations.
• Freedom to live according to your true values.
• Freedom to marry or date whoever you want without financial considerations.
• Freedom to control your time, your calendar and priorities.
• Freedom to work the hours you want and be your own boss.
• Freedom to spend time with your family and loved ones.

—————————————————————————————————–

After watching countless episodes of MTV cribs, I noticed that none of the people in those houses have regular jobs. They did something extra and that is what gave them the financial muscle to do whatever they wanted, including owning the home worth being on MTV cribs.

Everyday you hear about the big pay that footballers earn. Then you hear about movie stars, internet entrepreneurs, mega church owners, business men etc. Have you ever stepped back and wondered what these people have in common? The results of my small research below is my treat to you. I hope it will trigger something in your head to help you be financially free.

I came up with five pillars to financial freedom. You should aim to master and utilize most of them if you aspire to get to the glory land of financial freedom.

1. Deliver Value
2. Passive Income
3. Leverage
4. The Power of Compounding
5. Build on your Successes

1. Deliver Value

You cannot be an honest person and make it financially without delivering value. Even drug dealers deliver value to their customers. You must find a need and fill it. Find someone who needs accommodation, and give him a house. Find someone who needs to get from A to B and take him there. Only then shall you make an honest buck.

Movie stars are paid for the entertainment they provide to millions around the world. Find your angle and deliver value from there. Give people something of value and they will be happy to pay for it. You are always either a consumer or producer of value at any one time. If you are reading my blog, you are the consumer and I am the producer. If you are watching Oprah, she is the producer and you are the consumer. If you are working for someone, they are the consumer and you are the producer.

In most cases, the consumers of value end up paying some times directly, sometimes indirectly. You need to think carefully what it is that you can provide to other people. You may not always be paid by them, but you need to understand and be in the game for you to play.

This game is all about value proposition. What is your value proposition? A value proposition is the total benefit which a vendor promises her consumers. What can you do for the next person? Ask not, what people can do for you, but rather what you can do for them.

2. Passive Income

You need to decouple yourself from the provision of value. Rapper 50 cent does not need to sing to my ear for me to pay for his music. Roger Federer does not get paid only for the hours he plays tennis. Why you should you be paid only when you work? Who told you that that is right or even fair on you?

You need to find ways of providing value without being there. Find something that someone needs and provide it to them. If you provide that value without necessarily being there, then that will set you apart from the other people.

Examples of of passive income are:

• Rent – tenants don’t need (or want) their landlords there and yet will pay the rent. Be the landlord. Its a win win. You house a family, they pay you.
• Royalties from books, movies, DVDs, Software etc
• Earnings from businesses that does not require your direct involvement.
• Dividends and interest from your wealth portfolio.

3. Leverage

According to Wikipedia, a lever is a rigid object that is used with an appropriate fulcrum or pivot point to multiply the mechanical force that can be applied to another object. You need to find a lever for you to leverage to attain financial freedom. Do not be just satisfied with providing value, use a lever to amplify your efforts.

You can magnify and multiply your abilities and value through other peoples time and resources. It is not as evil as it may sound. Writers use bookshops like Amazon to reach out to millions of customers. Musicians leverage the experience and resources of record companies. Home owners leverage the bank’s money to buy their home. Footballers leverage television.

Find something you can use to multiply your efforts and help you serve people better. I am leveraging the internet and the open source community to bring this message to you. I am leveraging the vast inventory of google ads to deliver targeted advertising on this blog.

If you are interested in the concept of leverage and how you can apply it to make grow your finances, read up on the works of Robert Kiyosaki or post in the comments section if you want me to write a full blog post on that.

4. The Power of Compounding

Albert Einstein is quoted as having said that the most powerful force in the universe is the concept of compound interest. You will attain financial freedom if you reinvest your profits.

Taking advantage of the power of compounding takes discipline and is best to start early. Create a financial plan and invest in financial instruments that reinvest your profits year in year out.

I will write a full blog post on the power of compounding in the future. For now, just know that compound interest can make a big difference in your financial fortunes.

Compound interest has a negative side. If you let credit card debt creep up on you, you can end up seeing the ugly side of compounding by paying more and more interest the longer you stay in debt. Avoid bad debt, it is a thief of financial freedom. Good debt can help you leverage other people’s money to meet your financial objectives.

5. Build on your Successes

Be thankful for each success you accomplish. Use each success as building blocks for your next success.

Invest in education, keep learning both from your mistakes and from the mistakes of others. Have a generous spirit. Do good with your success. Don’t be evil.

Summary

Money is not the answer to everything, but having financial freedom can help you avoid pain and increase pleasure. To be able to attain financial freedom, you have to focus on delivering value to others, decouple yourself from the actual work of it. Deliver value 24/7 and be paid for it. Find leverage and use the power of compounding to your advantage.

All the best in your quest for financial succces.

_{»crosslinked«}

Did you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically to your feed reader.