10 Tips to Achieve Financial Freedom

Posted by Grace under Personal Finance on October 21, 2014

Want to read tips to achieve financial freedom? Here’s the secret road to financial freedom. Learn how to prepare your financial future life fantastically and achieve financial freedom by growing your hard earned money through investing in different investment vehicles available in our country. Are you also one of the people who are worrying about the future? If you will get prepared before it will come, you shouldn’t have to worry. Today, give yourself at least 10 minutes to study these simple but effective tips on how to invest for your financial future.

Related: Why Financial Freedom is Important to Choose?

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We should talk here the value of time and how can you take the “TIME” for your advantage. Time is GOLD, you always hear that, but it is more than GOLD after you realized that you have no more time left to enjoy your life and do the things you want to do. Therefore, time is more than GOLD.

Time is money, you often hear that. Do you agree with that statement? Whether you like it or not, young or adult needs both time and money. What happen to your life if you have a lot of time (young) but you have no money? What would happen to your life if you have a lot of money but you have less time to enjoy it?

I hope you are enjoying this article written only here at InvestmentTotal.com. I strictly following this guide and let me inform you that there’s a big changes in my life especially financially.

10 Tips to Achieve Financial Freedom

Important: I warmly welcome the critics and experts in this blog for me to improve this blog for the sake of my readers all over the world. I summarize these guides so that you can understand easily, I named it as “practical” because it is easy to follow and doesn’t cost you too much money in doing these guides. Are you ready? Let us continue.

Warning: Before reading this guide, makes sure you have the following things needed because from time to time the guide will ask you some questions for you to think critically.

Things Needed:

  • Notebook, Ballpen, Calculator
  • (A written plan is better than a “wish”.)

Analyze Your Financial Life Today

Analyze your current financial situation today. How much is your net worth?  How stable is your job? Is your business stable? Can you buy anything you want? How much money do you have in your wallet and in your bank account? Are you aiming for 3 times a meal per day? If someone will ask you for a financial help, do you have the capability to help him or you just say “I have no money”. Just analyze your finances today. What’s going on to your finances?

You are a hardworking man but it seems you aren’t getting rich, what’s the matter with you? Do you understand that being a hard working man is not enough to achieve financial freedom? If you are one of the people who’s losing 80% of their hard earned money unconsciously, you better stop for a while and get a notebook and pen and;

Answer the following;

  1. When did I start working? (Example 1995)
  2. How much is my average monthly income since _____? (P18,000)
  3. How much is my total gross income since I started working? (Formula: number of years x 12 x average monthly income) (Example: P18,000 X 19 years X 12 (months) = P4,104,000
  4. How much money I saved since I started working or just compute your total assets such as the market value of your properties, cars, house and lot? (Example) P1,350,000.00
  5. Do you have loan or other liabilities? Yes / None How much? (Example P350,000)
  6. What is your current net worth? Formula: Assets – Liabilities (in my Example P1,350,000 – P350,000 = P1,000,000)

Read: How to Compute Your Net Worth

Ask Yourself: Who Am I After 20 Years?

Now ask yourself, what do you want to become after 20 years. What kind of life would you give for your kids? What lifestyle do you want after 20 years? A lifestyle that is still aiming for a 3 times a meal per day, still working hard, still no time for loved ones or do you want to get really, really, really rich?

Think about this, when is the last time you fall in love? When is the last time you wear a weird outfit as if you are the only person in the world? That was 1970 I think, or during the summer of 69. Time is passing by so fast, you don’t know it, because you are busy.

It is important not to waste your time, if you plan to get rich or to stay poor after 20 years, time will still there. The question is, would choose to become poor or to be rich. You might say, to become rich, but, based in your action you are choosing to become poor. Have you realized that?

The future is not after 20 years, the future is today. Look at your notebook, how much do money did you saved for the last few years? See?

Answer the following now:

  1. After 20 years I want to (Example, have a BMW car, grand vacation in Paris, discover the beauty of the Philippines)
  2. After 20 years I am no longer (Example: poor, employee)
  3. After 20 years I have much money amounting to (Example P50,000,000)
  4. 20 years from now, I have an target earning asset amounting to
  5. Compute Your Target Earning Asset in the Retirement Planning Section)

Change Your Money Mindset Constructively

Your mind is your big obstacle, how your parents taught money, what is your belief, there are many questions about money. Some words about money can’t support your happiness some words can support your happiness.

I recommend the book of T Harv Eker (Secrets of the Millionaire Mind) if you find difficulties in changing your mindset about money.

Example mindset written in the secrets of the millionaire mind. Which is more important love or money? If you answer money, there is a problem with your mind. If you answered love, there is also a problem in your mind, but, if you answered “BOTH”. You have a millionaire mind.

A simple explanation by T Harv Eker, money or love? It is just like simply asking question, which is important, your hands or your feet? These parts of your body is important. Now go to a SM cyberzone and buy your favorite android or smartphone and pay the cashier with your love. Duhh?

Go to school and pay your kids tuition fee using your love. The school might call a police to arrest you. Now you know the importance of having a constructive money mindset.

Answer the following:
1. When I have millions, I would become (example: happy, boastful, confident, generous, etc.)
2. Which one should you choose? To become poor complaining in the government, or to become rich and became an asset of the government?
3. What is your opinion about “to become rich is praiseworthy”.
4. What would you do if you have millions?
5. Guide to make millions.

Balance Your Belief in Money, Love and Spirit

You should have a balanced life. Think this logically, assuming you are a big fat guy, an expert told you to go to gymn and have an exercise. Your goal is to lose weight. Now after going to the gymn making some exercises or after going to a mall or park dancing “zumba”, you eat too much. And you’re wondering why there is no progress in your plan to lose weight. The answer, you are just focusing on exercise but you forget the importance of proper diet.

If money is important do not focus your attention in making  money. Focus also your time to your loved ones, if you are rich but you don’t believe in God, I think some things wrong with you. If you are busy making money but have no time to your loved ones, well, I think your relationship with your family isn’t healthy.

One good example is my husband, he is a busy man. Teaching in the public school, raising hogs in our back yard, busy in selling his home made products, setting up a websites for his clients, monitoring our family’s paper assets in stocks, mutual funds and UITFs but he has also have time to treat me and my daughter in the mall for lunch, movies and entertainment, in the park, it simple means he has a quality time for his family. One good thing is he didn’t forget to praise the Almighty God – he is a church organist playing the organ in the church twice a week during worship services. A quality time for God.

Answer the following questions;
1. Is your belief related to money is supportive?
2. Do you believe “money is the root of all evil?”
3. Do you believe lack of money is the root of all evil?
4. When you became rich, would you still believe in God?
5. When you became wealthy, would you still treat other people (especially poor) nicely?
6. When you became rich, would you still bend your knees, vow your head, step your feet into the ground?
7. What is your priority? To become rich, your relationship with other people or your time to serve God.

Other Tips to Achieve Financial Freedom

It’s time to draw your road map to financial freedom. By this time if you really following this guide, you now know your target earning asset and how much should you save to acquired that target earning asset.

How to draw your own map? You have to plan ahead and have a goal. What is your goal? In making a goal, make sure it is specific, for you to guide in making a goal, remember the word SMART, which means specific, measurable, attainable, realistic and timely.

Now answer these questions;

1. How much do you really want to consider yourself wealthy? (P100 Million)
2. When is your plan to achieve financial freedom? (on year 2034)
3. How do you achieve this goal? (think about options, business, investments, salary raise)

Follow Your Road Map or Die Trying

Follow your road map, get rich, it is only you who know this map, we have different road map to financial freedom. Your map is different to my map. If you plan to make P100,000,000 in 20 years, hold on into this goal, be focused, you shouldn’t get distracted or disturbed by anyone, even your own mind. A successful man knows what he wants and what he don’t want. He always analyze his work through results.

Every month or every quarter, track your results related to this goal. If you are doing good, keep on doing it, if you found something that doesn’t working, stop doing it and find alternatives.

Answer these questions;
1. Are you easily disturbed by anyone?
2. Are you a focused person?
3. Are you willing to do whatever it takes to achieve a goal?
4. Which is more important to you, your goal and permanent success, or it is more important to you what other people say?

Have a Stronger Shield and Protected Feet for the Long Journey
Now, you decided to do whatever it takes and no one can easily disturbed you because you focused your mind and energy in achieving your goal, it’s time to think the best things to have before thinking on how to get rich.

I am talking about the things you should have while following your road map to financial freedom. These things should be prepared because these are very important, do not take for granted to have these things immediately.

Get Out of Debt – be a debt free individual as soon as you can. Pay all your liabilities, clear your credit cards, pay all your debts. It is hard for you to travel with your map to financial freedom if you have liabilities, these liabilities will be a reason on not to go to wherever you want to go, because there is a hindrances, you feel heavily and not comfortably while running. I am talking to “debts”.

Have Emergency Funds – just in case you, while walking to the financial road, you encounter “rainy days”, “dark hours”, I am talking about unexpected events, do you have your cash to provide for your immediate needs? Or you go to the hospital when you hospitalized and pay the hospital admin with your so called “love”. Of course you use money, cash reserve.

As a Guide: How Much Emergency Funds Should You Have? You should have at least the total amount equivalent to your 6 months income. If your income is P50,000 per month, you need a cash reserve amounting to P300,000.

You Need Life Insurance – you also need an insurance. Especially if you are the one who is the bread winner of the family. In the road to financial freedom, there are holes, undergrounds, careless drivers, that might be the cause of accidents and sometimes “sudden death”. What if you are walking and some bad guys along the road are having fun while driving and you killed in an accident? What would happen to your loved ones? Oh you can leave the things they need, “your love and memories”. Duhh, you should leave money for them to survive!

How much money should you give to your family while you are going to heaven? You should give them at least 3 to 5 years (depends on how many years of survival period you want to give) of your total annual income. Example, if you are earning P600,000 per year, then give them P1,800,000 (good for 3 years) or P3,000,000 (good for 5 years). But what if you have no savings amounting to P3,000,000? The solution? Get life insurance.

As a Guide: Here are the List of Insurance Companies in the Philippines

Answer these questions;

  1. How much is my monthly yearly income?
  2. Do I have debts? How I should I pay my debts?
  3. How much should I save for cash reserve or emergency funds?
  4. Where to buy a life insurance?
  5. How much face amount coverage for my life insurance? (total amount to be use, recovery period of your family) Fomula (annual income x survival period years = face amount)

Learn from the Past to Achieve Financial Freedom

Now you have the things needed while running or just walking to financial freedom, it’s time to learn how to enjoy the present moment. Some people immediately divert their attentions into the formula on “how to grow their money”, they think like crazy in preparing for the future but the present is, let me say “ a mess”. Here’s the guide on how to enjoy the present while waiting for future financial freedom. Interesting, isn’t it?

1. Manage your money, this time you really know how much you should set aside for your future. If you’re not following – compute again your target earning asset here.
2. In managing your money, you should have for your necessities, financial freedom account, give account and “play account”. Play account is for enjoyment.
3. To enjoy your present life while waiting for your financial freedom, study on how to manage your money properly.

Warning: Do not sacrifice your present life because you are molding your future perfectly.

Now answer these questions;
1. Am I knowledgeable about money management?
2. What are the things I most enjoy?
3. Which of these things are not required to spend a lot of money (example, watching TV with your loved ones, picnics, playing badminton
4. How do you think about “tithing and giving”?

I just want to repeat the importance of money management. Read it before you continue in this guide. Because the last third parts of this guide is a very “critical” topic – investing.

Create Your Own Masterpiece Majestically

Achieving financial freedom is an art. Life is an art. Managing money is an art. How do you want to paint your future life, it’s up to you. There are free paint brush and free canvass given by the nature. Take advantage in using these stuffs. Now, wondering how to create your own masterpiece majestically. Here’s the answer.

Do you have a car today? What type of car? What brand? Do you have a house? Is it bungalow, 2 storey house or a condominium? Did you enter university or just studied in a ordinary college schools? Have you drink champagne? Have you date your spouse along the seashore watching the seabirds fly?

Did your father gave you a house and lot? How do you feel if your kids has already a house and lot for them when they are ready to get married? Do you experience the hardships of becoming an employee? How do you feel if you can gave your kids a business capital and be their own boss? Have you experience when your boss are asking you to stay at work while your loved ones is in the hospital or not feeling good?

Have you experience the feeling of wanting to go home when you’re working abroad and want to hug and kiss your mother, have quality time for your kids and spouse, drink with your father but you can’t because you need money for your family? How hard it was?

How many Christmas do you spent without your loved ones? How many “new years” celebrated without the warming kisses of your loved ones? How hard It was? Have you feel so tired and feel down because aside from being tired, you are lonely, hungry, because you are saving money for your loved ones. How sacrificing was that? It is hard to compare the life of my beloved OFWs (overseas Filipino workers), they’re willing to sacrifice. I know what life they are having overseas, how they are treated.

My wishes for them: I wish them prosperity, good health, courage and education about finances. I hope they will save much money and start their own businesses here in our country so that they will give quality time for their loved ones.

I understand why my husband don’t dream to work abroad. It is because even in our country, you can be rich. Why you work abroad? For money, right? Try to become an entrepreneur here and invest your money. Okay, I am now talking about entrepreneurship and investing.

Don’t go home unless you have savings, use this savings as your business capital. Teach your loved ones about finances, teach them not to waste even a single cents.

When you go home, think about entrepreneurship. How to start your own business?

1. Know your market and location. Who are your target customers and where should you operate your business.
2. Think what to sell, is it products or services or a combination of both. If products, is it your own products or other peoples products. If it services, what kind of services can you offer?
3. Think how much capital you should invest? Also, consider if you borrow or use your own savings.
4. Operate your business legally through business name registration at DTI, tax at BIR, Mayors permit, sanitary permit, barangays permit, etc.
5. Be patient, acquire skills and experience along the way.
6. Watch money to come in your hands.

When you are making a profits in your business, think about reinvesting your profits in your business or invest in these different types of investments.

1. Stock Market
2. Mutual Funds
3. Unit Investment Trust Funds

Forget investing in time deposits, your money won’t grow that much compare to stocks, mutual funds and UITFs. Going back to the topic, it is time to set aside money and invest for your future.

I am not recommending the companies mentioned in this blog. I just have my own experiences and I am happy using their services.

If you want to invest in the stock market;
1. How to Invest in the Stock Market?
2. COL Financial Guides in Opening an Account
3. Other List of stock Brokers in the Philippine Stock Exchange
4. Why Should You Buy Blue Chip Stocks?
5. Stock Market Today Isn’t Only for the Rich
6. How Much is the Future Worth of Your P5,000 Per Month Investment?

If you want to invest in mutual funds;
1. How to invest in mutual funds?
2. Mutual funds companies in the Philippines (for Filipinos)
3. Top Performing and Mutual Funds Awardees 2014
4. In my experience I invest in Philequity Fund, Inc and FAMI-SALEF

If you want to invest in UITF
1. Start investing in BDO UITF EIP Easy Investment Plan
2. BDO UITF Lump Sum Investing Sample Calculation
3. Consider also other banks if you want, BPI, MBT (BDO in my experience)

Now open your notes and answer the following questions.

Answer these questions;
1. How much money to invest for my financial future? (Example P5,000)
2. Where to invest my money? (stocks, UITF, mutual funds, choose one)
3. Which company or financial institutions? (example for stocks broker: COL Financial)
4. How many years to stay invested? (example 20 years)
5. Why I invest? Write the purpose of your investments. (example reasons: retirement, passive income, financial freedom)

The reason why you invest is not for money but for a great purpose, remember you want not just to get rich, but to be happy, right? Helping other people, improving your life, your family’s life, and have a quality lifestyle.

These is how you create your own masterpiece, by becoming an entrepreneur and by investing. Why? Because it is not easy to become a successful entrepreneur or a successful investor. It is up to you if you choose to be a man of success or a man of failure.

Talking about failures, do not afraid to fail. Instead make these failures as a great motivation to achieve success. You will never know the meaning of success if there is no word such as “failure”, “mistakes” etc. Analyze your success rates, as I have said in my previous article, do not afraid to fail million times just to get one big permanent success.

When painting your masterpiece, you can adjust the colors and use different sizes of paint brushes. In real life, it is just like also painting, once you made errors, you can change it for a better one. It depends in your own hands and thinking.

I am really sorry for this article for it was written consisting of almost thousand words. Please continue reading this article, do not forget to share afterwards. Anyway, is it worth your time reading this article? Agree?

Contribute to Arts Like Leonardo da Vinci, Michaelagelo and Donatello

Yes, they contribute to arts, painting and sculptors. They became famous because of their works. Even today’s generation get benefits from their artworks. Let me say, in finances, famous artist are Henry Sy, John Gokongwei, Many Villar, Bill Gates, Warren Buffett, these are high net worth individuals.

Henry Sy the wonderfulness of being rich and successful. If Henry Sy, didn’t commit his time and effort to his goal, what would happen to unemployment rate to this country? It will increase, right? If he is not determined to follow his dream, where can you experience the world class malling in the Philippines?

If John Gokongwei Jr, didn’t commit himself to his vision, where can you find cheapest but with quality pinoy products? There is the URC manufacturing products for people all over the world.

If Bill Gates just watch the billionaires and didn’t take action in building his own business, I think the banks, schools and other businesses would provide poor services, give thanks to Bill Gates for his masterpiece – Microsoft

Acknowledge the Infinite Power to Achieve Financial Freedom

You have to acknowledge God, God provides everything you need. Your mind to think, your eyes for vision and your skin for sense of touch. You only have to decide on whether you want to become poor or to become rich. He will give you what you want, just ask and help you succeed to get what you want. Another ways on how to acknowledge Almighty God is by tithing in your church or giving donations to charities.

As a Summary to Achieve Financial Freedom:
1. Analayze your financial life today. Stop for a moment, and study what’s going on to your finances.
2. Ask yourself, what do you want to become after a specific period of years.
3. Have a miilionaire mindset.
4. You should balance your belief in money, love and spirit.
5. Draw your own financial road map.
6. Follow your financial road map strictly.
7. Have a strongest shield as possible for the long journey.
8. Enjoy your present while waiting for financial freedom.
9. Create your own masterpiece, learn from the rich people such as Bill Gate, Warren Buffett and Henry Sy.
10. Praise Almighty God with all your heart.

Here at InvestmentTotal.com, I don’t only inform my readers about investment opportunities but also inform them the value of integrity as a secret to prosper in life.

As a Final Thought Regarding Getting Rich: Let me give you some reminders I always remember from Wallace D. Wattles in his book The Science of Getting Rich stated;

  1. “Give every man more in use value than you take from him in cash value; then you are adding to the life of the world by every business transactions.”
  2. “You want to get rich in order that you may eat, drink, and be merry when it is time to do these things; in order that you may surround yourself with beautiful things, see distant land, feed your mind, and develop your intellect; in order that you may love men and do kind things, and be able to play a good part in helping the world to find truth.”
  3. “Get rid of the idea that God wants you to sacrifice for yourself for others, and that you can secure His favor by doing so; God requires nothing of the kind.”
  4. “What He wants is that you should make the most of yourself, for yourself, and for others; and you can help others more by making the most of yourself than in any other way.
  5. “You can make the most of yourself only by getting rich; so it is right and praiseworthy that you should give your first and best thought to the work of acquiring wealth.”
Money Quote and Sayings for Today:

In my experience, getting rich takes focus, courage, knowledge, expertise, 100 percent of your effort, a never-give-up attitude and of course a rich mind-set.
– T. Harv Eker, Author of Secrets of the Millionaire Mind

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2 comments on “10 Tips to Achieve Financial Freedom

  1. Kali yhas says:

    I just wanna thank you for this wonderful blog of yours. It really open up my mind to the possibilities of getting rich and escape the hardship of working overseas. You just hit me a trillion times with sad and harsh reality of life away from home. I keep on asking my self what I have done and accomplished over a decade as an OFW yet im still stuck in a foreign land… I may start to draw and create my own masterpiece.

  2. Carmen Galston says:

    Hi, Awesome stuff. I am looking forward to see more of your articles.

    http://www.danaashlakoff.com/


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