When we're young we typically want money for one reason and one reason only to
buy the things we never had many of us grow up in situations where money is
scarce and we go through life with less than those around us as such when our
time does come to enjoy what money we have we tend to take full advantage of
the opportunity however anyone who's spent money on material goods to fill
the void in their life knows that it's rather unfulfilling if you ask me it's
not material goods that your money should be spent on by buying back your
time instead this is why so many people strive to retire early and attain
financial freedom and as such in this video we will dive into the benefits of
being financially free and then go through the five levels of financial
freedom and if you're new to the channel then hit the subscribe button below for
more life-changing content there are two things i love in this world that have
the initials ff the first is fast food now of course i don't need it all the
time but i mean who doesn't like a nice cheat meal every once in a while right
the other double f i can get behind is financial freedom as i just mentioned i
think we all go through a face in our lives where we want to reclaim the
missed out on glory of our past by spending money when we finally come into
it i know that when i finally cracked the six figure club i had a strong pull
to finally spend money to travel to the places i could never afford to visit for
others their spending desires may relate to fast cars nice dresses and the like
however while this sucks to admit each one of these spending endeavors pushes
you further away from attaining financial freedom which if you ask me is
a much more worthwhile cause in fact most people have never even thought
about what benefits come with attaining financial freedom so let's go through a
few of them right now the first benefit and the one i would argue is the most
valuable is gaining control over your time as humans we crave autonomy and in
most people's ideal world being able to do what they want when they want is the
ultimate prize however jobs relationships and other responsibilities
tend to get in the way of that dream and while i'm not saying to ditch your
spouse or put your kids up for adoption you can at least tackle the working
aspect that will make you more autonomous the second benefit is reduce
stress the concept around being financially free is to have enough money
to never have to work again in my eyes it's basically being retired but without
all the gray hair and saggy skin well when you have loads of money in the bank
chances are you aren't going to be sitting up at night worried about your
next paycheck or how you will pay the 300 to get your car fixed whether you
want to admit it or not all these little financial speed bumps take a toll on our
mental health and when you become financially free you should be able to
handle them much more swiftly finally when you're financially free you have
the option of buying back your time i know i already talked about time
autonomy as being a benefit but let's face it regardless of how wealthy you
are you will still need to cut the grass do the dishes or grab groceries you have
to do all these mundane chores that is unless you pay to avoid them i know for
myself personally offloading low value tests dramatically improves the quality
of my life because let's face it no one likes cleaning toilets or sweeping their
floors when you have money you can make these chores disappear which is just
another reason you want to attain financial freedom therefore smash the
like button below if you want to realize all the benefits of financial freedom i
just mentioned and now let's dive into the five levels of financial freedom so
you can see where you land on a spectrum and the steps you must take to get to
its final stage level one financial wokeness in a present day and age
generally speaking being woke is a good thing from being aware of the changes in
our climate to acknowledging the travesties against those who came before
us being woke means being aware unfortunately many people are sleeping
on one of the most important forms of wokeness which is financial wokeness i
believe that almost everyone at some point in their lives will have their own
financial awakening a financial awakening as i describe it is a point in
their life where their financial situation is so unbearable that they are
forced to make a change for you this awakening could be when your boss makes
you work overtime for a third night in a row and you have to miss your kids
recital because of it alternatively it could be when you have a sick relative
halfway across the country you want to visit but you can't foot the bill for
the plane ticket these moments of financial awakening tend to hit us hard
and they prompt strong action in those who are the most affected i know i had
my own financial awakening when i was working 60 plus hours a week in
management consulting and was not only dead tired all the time but could still
barely meet my bills therefore the first step in becoming financially free is to
identify where your present financial issues lie and realizing that without
action you will remain in that rut forever level two financial adoption and
stability this level in the financial freedom ladder is perhaps the most
important because this is where the rubber meets the road up until this
point you're probably a proverbial chicken with its heads cut off when it
came to money and financial advancement but today that changes when you enter
level 2 you can start to ask yourself deeper questions like why you want to
strive for higher financial goals and what will having more money do for you
this is also the phase of financial freedom where the most amount of
learning is done this is where people start to investigate the best ways to
save earn and invest their money through connecting with mentors reading books
and taking online courses with this new financial tool about around their waste
most people tend to start to see improvements in their financial lives
during level 2. they finally tackle that pesky credit card out of theirs they
amass a small amount of savings and they may even try their hand at the stock
market too not to mention for those who are really taking their finances
seriously they even craft a retirement plan so that in the future they aren't
forced to work until the ripe old age of 95. how i would sum up level 2 of
financial freedom is that you are no longer struggling to get by financially
you're making enough money every month to cover your bills and you can handle
one or two minor unexpected expenses if they come your way which if you've been
around long enough you'll know that they come sooner or later level 3 financial
security why do millions of people around the world pay to have an alarm
system in their house simple it feels good to feel secure and when you reach
level 3 of financial freedom you too can enjoy this amazing feeling in my eyes
being financially secure means you can handle all of life's unexpected events
for instance if your car breaks down you can easily handle the repair bill if you
lose your job you have enough money in the bank to be able to ride out the
period of time where you're unemployed so to me being in this stage simply
means that you're past staying up at night worrying about your bills and
given that life is full of many other things to worry about getting the
financial aspect off your plate is a huge plus now you don't just become
financially secure by accident some of the core tenants of being financially
secure are having a six-month emergency fund set up having more than one stream
of income and being properly insured these are what i call the financial
freedom trifecta and once they're in place your financial worries will be
significantly reduced therefore once you do have these financial components set
up in your life congratulations because you're now halfway through the five
levels of financial freedom level four financial prosperity once you enter
level 4 financial freedom you've now joined the big leagues i will admit that
there is a big jump from level 3 to level 4 and as such few people are able
to join this higher tier but if you were able to get there the benefits are
immense so first off what does level 4 consist of you will know you've entered
a life of financial prosperity when you never have to work again keep in mind
that you use the word need because if you hit this level financial freedom
early enough in life you may still want to keep working in some capacity so as
to fill your time now how do you get to the point where you no longer need to
work for a living there are two ways to get there the first is through the
traditional means of amassing a large enough nest egg to never have to rely
upon a paycheck again this is typically done through consistent saving and
investing and if you add a large income to the mix then this goal can be
attained rather quickly i know that my own retirement savings have skyrocketed
since i started on youtube and began collecting a whole extra full-time
income for my channel what you teach others how to do in my course six figure
tuber the other path to financial prosperity and never having to work
again is when you have enough assets in your possession to pay every last bill
you have this could be real estate online businesses dividend stocks are a
combination of all three however the way i describe being financially prosperous
doesn't probably sound that prosperous to you in the way you imagined sure it
would be amazing to never have to work again but how large will you be living
in the stage of financial freedom at level 4 the money you either have set
aside or coming in every month should not only allow you to meet your bills
but never have to shop for sales items again in short your day-to-day spending
is easily handled you can afford to travel a few times a year all will enjoy
never having to get dressed for work again level 5 financial freedom we
finally made it to level 5 of financial freedom but the question is have you if
you've yet to progress to this point in your financial life don't worry because
few people ever get this far when you are totally financially free you'll know
because at this point you'll experience two amazing sensations the first is that
you'll have ultimate control over your time no one other than maybe your
spouse's kids can tell you how to spend your time again second you will never
have to check a price tag or worry about how much you spend ever again as you
probably come to realize being financially free to this degree will
require you to have millions of dollars however with the right set of skills i
do believe that this level of wealth is attainable generally speaking achieving
ultimate financial freedom requires a skill set of high financial iq
consistency and patience the issue is that there are a ton of people who have
these two factors in place but tend to lack the third for example you could be
very well educated and consistent in your money management practices but take
on too much risk and lose all of your money because of your lack of patience
alternatively you could be consistent and patient but are working in a model
like trading your time for money and never get ahead because of the
limitations that are currently placed upon you at the end of the day yes
reaching level 5 of financial freedom is a great goal to work towards however you
shouldn't feel bad if you never get there personally for me level 4 is
enough but you have to figure out what level is going to work best for you
given that rising to each of the levels will take some degree of sacrifice and
commitment hey it looks like youtube thinks this next video is the one that
will change your financial life forever give it a watch and let's see if they're
right