The Fourth of July celebration is a big one for Americans. Barbecues, fireworks and friends.
It’s about independence.
The ability to make your own decisions and follow your own path.
It’s about FREEDOM!
How about your own personal freedom?
Do you have the ability to make your own decisions? To determine when and how you work? Where you live? HOW you live? Or do you have to think about jumping in the car for a long commute in traffic or trying to figure out how to scrape by this month as the bills keep mounting and your income seems to never go up?
Can you really have freedom without financial freedom?
Let’s take a second and define what that means. It’s not so much a number as much as it is a lifestyle. Can you work only on what you want to work on, and when you want to work. Do you have enough cash flow to provide for yourself, your family and your community, however you define that?
A lot of what I talk about at USTaxAid and through my emails has to do with stories about tax strategies and what works and what doesn’t.
Tax is a drag on the system. That’s an actual economic thing. But it’s even more closely felt on an individual basis. If you paid $10,000 less per year in taxes, what difference would that make in your life?
The #1 way to pay less tax is to have a business. There is a reason why the rich have businesses and make and/or hold their wealth in real estate. It’s a basic, tried and true method of making sustainable money.
If you don’t have a business, start one. My strong suggestion is avoiding a “swing for the fences” with a brand new product in a brand new market outside your core competence. In the beginning, stick to what you know and is proven. Learn to market. There a LOT of moving parts to owning a business. There is plenty of time to set the world on fire. The first time out of the gate almost always includes learning experiences. It’s best to learnthose lessons a few at a time. (At least, that’s the conservative CPA in me talking now.)
For income sources, I personally like to establish multiple streams. And, no, that doesn’t mean I’m about to try to sell you a multi-level marketing opportunity. But, if that worksfor you, awesome. You just need more than one in case the economy or industry you’re in changes. That’s how you build flexibility.
I like developing recurring income best of all. If there is a little work required on my part, that’s fine as long as it’s leveraged work. But in the beginning, I had a service industry and that meant I was paid directly for work I personally did. My first step was to have my client’s pay on a consistent basis. It evened out cash flow both for me and for the clients.
That’s active recurring income.
Next I looked for ways to leverage it. Because client work is confidential by its nature and by our professional ethics, I couldn’t just record calls or transcribe them to share with others. However, I could rewrite the cases by changing names and significant details as good examples to point out what works and what doesn’t work. But that took more work.
The next question was how can I create recurring leveraged income. For me, the idea was to create a coaching program. It would be recorded twice monthly and I would prepare updated Home Study Courses to accompany the calls. I planned to add new ones as things are changing all the time, too. The Home Study Courses would double as a supply of info products I could sell at my site.
Success! I have recurring leveraged income from coaching AND I am creating products I can sell.
If you currently are self-employed, do you have recurring income? Do you have leveraged income? Is there a way to add those strategies into what you currently do in a way that you can easily do?
The next income source to add is passive. In actuality, passive income is rarely completely hands off. If you have $10 million, you can undoubtedly find 5% interest bonds, set it and forget it (half a million a year). But if you have less and want a higher return, you will need to be involved in some fashion. That’s true of real estate, stock investing, and crypto investing as well. You will have to do SOMETHING if you want the highest return.
You also need to know when to buy. If you want cash flow, the technical definition means that you don’t have to sell the principal asset to create cash. Stocks can provide dividends; Bonds can provide interest return. There are strategies for crypto investors now that allow you to get cash flow on that as well. But again, you need to have enough cash invested in order to get a meaningful return.
That brings us back to real estate. It is very feasible tomake a 10% or greater return on the CASH you invest in real estate. With leverage and smart purchases, you can turn a little into a lot more and rapidly if you have appreciation working for you as well.
The real estate and business strategies are obviously more involved. That’s why I do the twice monthly coaching programs. The first Wednesday is on real estate and the third Wednesday is on business. We talk about tax strategies (obviously) and cash flow creation, asset protection and wealth building as well.
It is not something to start if you aren’t ready to make changes and take action. Otherwise, why learn if you never put what you learned into action?
We’re all thinking about freedom these days and what we want to control and what we’re ready to relinquish control of to someone else. With the changing times, though, it means more than ever you need financial freedom. No one else is watching out for you and no one cares about you and your family as much as you do.
If you’re interested in finding out about coaching go to: https://www.ustaxaid.com/coaching-program/