Fortunately, many of us make mistakes, which make it harder for us to gain financial security. Here are things we should avoid:
- We delay creating passive income systems: We should be aware than independence within our job isn’t similar to gaining financial independence. Trading effort and time for money isn’t actually the best way to make money. We should have a system that continuously generates revenue. However, creating such a system isn’t always easy and we could start to take every extra cent and invest it to assets that can eventually help us make money continuously. Our goal is to buy or create assets that can bring steady passive income.
- We think that financial independence is only for retirees: Many societies have specific perceptions about retirement years. After working hard for more than 40 years, it is time to trade it with pleasure of spending our time. Truthfully, we shouldn’t want that kind of retirement. Financial independence should be achieved much earlier when we are still younger and able to take advantage of our financial position. We could change our mentality, take risks and put in whatever efforts needed to gain financial independence before we reach the age of 65.
- We nurture “mediocre” emotions: Actually, there are many other reasons that can prevent us from achieving financial independence. They could really affect our goals and dreams. For many people, the most significant factor that prevents us from gaining financial independence is our erroneous emotion. They can be categorized into inaction, mediocrity and fear. We could be afraid of taking risks and having a failure. We shouldn’t be content with mediocrity and always be someone with average achievements. Common thoughts related to this matter could “that’s good enough” or “I’m just getting by”.
- We should know that true wealth isn’t equal with how much money we have in the bank, the car we drive and the house we live in. Our state of mind determines true wealth, much more than the actual dollar figure. So, even if we are broke, but we decide that we are financially independence, in essence, we are progressing to gain true wealth. Many people who have simple cars and houses could actually have steady stream of income. Comparatively, some people could live in the grandest mansion, drives the fanciest car and makes millions of dollars each year. However, they are not exactly wealthy if their debt exceeds their assets and their expenditures exceed their income. Even very wealthy individuals could also trade time and effort for money. They may also live in fear due to their excessive doubts. Billionaires may also be entrenched in the usual rat races, in the hopes that they can achieve their next financial goals. In this case, it is possible for billionaires to elude the financial independence status.
It is essential for us to avoid performing these mistakes or it will be very difficult for us to achieve dreams and goals n life.