People have divergent views on the term ‘attaining financial freedom.’ The phrase typically means obtaining enough financial resources to live a comfortable life.
Comfortable life, in this case, is relative and differs from one person to another. However, a study shows that the unifying resource to live a life that one wants is money.
The major ways that an individual can use to attain financial freedom include employment and engaging in self-employment. Financial freedom can also come from doing business and investing.
Ways of Attaining Financial Freedom
Employment is a way of attaining financial freedom
Employment is the first approach of attaining financial freedom.
This approach means working for another person or company in exchange for money. The remedy for employment is normally known as wage or salary. Wage is paid per hour/day while salary is compensated monthly.
The person seeking employment is known as an employee and is paid based on time spent doing tasks. Therefore, the leverage for employment is time.
This fact means that for an employee, time equals money!
One can attain financial freedom using employment since some companies pay their employees, especially the top management, up to $200,000 per month. The amount paid for employment depends on the value that the employee brings to the employer, which can also be negotiated.
Engaging in self-employment
Self employment is the second way of attaining financial freedom.
This approach means offering goods and services, as an individual, in exchange for money. Some of the popular self-employment avenues include farming, blogging, affiliate marketing, and other freelance jobs.
In this method, income is gained based on the amount of goods or services sold. This fact means that one is paid based on the time spent selling goods and services, which means that the leverage for income is time.
Therefore, in self-employment, time equals money!
Self-employment does not have a ceiling for earning money since it depends on individual effort and time spent doing particular tasks, such as selling goods and services.
One can attain financial freedom using self-employment by maximizing revenue and profits. Therefore, goal-setting is important in maximizing returns for self-employed individuals.
Doing business
Encaging in business is the third method of attaining financial freedom.
Business involves engaging in commercial activities. Such activities include selling goods and services to potential and target markets.
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A business person normally hires employees to help in the selling process. This fact means that human resources play an important role in business.
When conducting business, it is vital to ensure operational efficiency by hiring the right individuals to conduct various tasks. The leverage for business is human resources.
Therefore, in business, people equals money!
Success in business also depends on how well one can penetrate the markets by offering goods and services better than competitors.
One can attain financial freedom using business by having an efficient team that can maximize revenue and profits. Therefore, an efficient and effective workforce is key in business.
Investing is a way of attaining financial freedom
Investing is the forth way of attaining financial freedom.
There are are various financial schemes for investment. The process simply means putting money in a specific scheme with the aim of getting returns.
Some of the most popular investment platforms include property, shares, money market fund, treasury bonds, and cryptocurrency, among others. The leverage for investment is normally money.
Therefore, when investing, money equals money!
However, risk normally plays an important role in investment.
Besides, ‘the higher the risk, the higher the returns.’ Moreover, one can attain financial freedom using investment by choosing the right schemes.
It is also prudent for investors to diversify their portfolios in order to create a balance between risk and returns.
Conclusion
Attaining financial freedom is everyone’s dream. The most important thing in attaining such freedom is making money.
Therefore, one can attain financial freedom through employment, self-employment, business, and investment.
The choice depends on an individual’s skill set and available opportunities.
