Wednesday, February 11, 2009

Writing a Financial Freedom plan

1) Setting the Dream :
Writing your financial freedom plan is just like planning a trip. You need to know your destination,clearly and precisely, estimate the time you will need and plan your way to reach there. Exactly the same way when you sit to write a financial freedom plan, you need to have your goal or destination in mind. This is your benchmark or goal post against which you you will constantly monitor yourself.It could be anything like having a passive income of $10000 a month or buying that multi million dollar dream house or a Ferrari, BMW, Lamborghini, Porsche or a month long world tour in the finest hotels and destinations, or international eductaion for your children or buying house and taking care of your parents or donations to charity etc.The list can be endless but whatever your dream is, make it an emotional dream, the thought of which inspires you,that brings tears to your eyes,one that gives you the adrenalin rush, the fire in the belly kinda feeling.This is gonna be your fuel cell, your everlasting source of energy in your voyage to your destination.Once you have made your dream clear in your mind,put a date to it.
Dream + Date = Goal
My Goal is achieve that $10000 a month in passive income within the next 5 years,and I am gonna do it whatever it takes to achieve that.No one can steal that dream from me.
Well this goal is a long term goal, so you need to break it into smaller goals like medium term goals and short term goals.
Medium term goals are goals to be achieved in next 1-2 years. Short term goals are goals to be achieved within the next 1 to 3 months.

Now that you have set your medium and short term goals, you can now set out to think on the paths to achieve your goal.

Hot Tip: Write down your top 5 goals in a piece of paper and carry it in your pocket! You will be AMAZED to see the results!

2)Choose your path
There are many paths you can take in your journey to financial freedom.You can trade in stock markets, buy real estate,gold, currency markets, internet business etc. Take the path which excites you the most and one which would like to go on.Once you have chosen your path, do your research on the path. If you want to get into real estate, do some due diligence in checking related material on the internet, buy books, audio cds, study tax laws etc. Join forums where you can meet people who are involved in similar activity. Associate with them and you will learn more than you could ever on your own.Take up some good training courses in the area that would help you to understand the area better.
Personally I am big fan of Robert Kiyosaki. He has shared his wisdom in such plain words in his books and audio cds that anybody can learn and follow it. Of course, it needs a lot of commitment and persistence. To begin with, I would suggest play the cash flow game devised by Robert. He recommends playing it at least 10-15 times and learning to get out of the rat race. Believe me, you will have the time of your life when you will see your real life decisions being reflected in the game. In addition, it is great fun to play. I love playing it and keep playing it every now and then.
Helps me to get my perspective right !

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