My Answer to a 19 Years Old Boy’s Financial Freedom Question
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This is an article that I write to answer a 19 years old boy’s question in richdad forum. He was asking :
I am looking for anyone to point me in the correct direction, my goal is to be financially independent by 25. I just recently joined this forum, I have done some research on recommended books and such, but just do not know what to do. I have no need for inspirational or motivational materials, I have plenty of that. I need a starting point, somewhere to begin my work.
I am thinking high-risk stocks, but do not know much about the stock market. Some friends and I were talking about real estate, but do no know much about that either. I am willing to learn anything. Any books that will go more in depth with these sort of things (i.e. termonology, etc.)? Any other ideas where I could begin?
This is the most common question that a lot of people ask when they want to make a plan to achieve financial freedom. So below is my answer for this question.
The First Step in your plan is ……
I will recommend you to plan anything that you can make excessive cash as your first step in financial freedom planning. At this moment, what I can see is business has the potential to let you make excessive cash, especially the online business. Of course, if you don’t like to start any business, you can do anything that you can to generate excessive cash.
But if you want to retire earlier, just like this 19 years old boy who wants to retire at 25. Then starting a business is must for you because of its potential. It can really make you retire and financial free quickly if you do everything properly. Of course, starting a business is not easy but I can tell you that it is worth to put some hard works into it. What you are doing right now is invest for your future. Furthermore, you don’t have to quite your day job to start your own business, for example, to make money online through blogging, all you have to do is sit down at your spare time and write some articles for your blog. This is the true way to achieve financial freedom – leverage on your spare time.
The Power of Excessive cash
So here are the reasons that why you should start with excessive cash:
- Reduce the investment risks. People always afraid of taking risks when comes to investing. This is because they are worry of losing money. If you are investing using their limited cash or money, losing money is a big risk because it might affect your life and personal finance or even their retirement. But the story will be different if they invest with excessive cash. First you have excessive cash and you can invest in less risk because losing money will not affect you directly. Second you usually have a way to generate excessive cash, so you can always generate back the money if you loss it in investment. By reducing the risks, you will invest differently compare to others and hence you can achieve financial freedom faster.
- Able to afford more and variety of investing options. Investing just like a strategy game where you must plan and use your strategy to make money. So each investment has its own options for you to invest. But some time you need to pay extra or use more money to use difference kind of options. So with excessive cash, you choose whatever you want. At the same time, you also can invest in different kind of investment to diversify your investment portfolio. Don’t put all your eggs in one nest, this is what most investment experts will tell you.
- Afford some big deals which sometime are less risk! Yes, I found this from my customers who are rich. According to them, in some cases, your investment will not risky if you can put a certain amount of money in it. This is what we always call big deal investment. Some of them even can bring higher return and less risky compare to those small deals investment. I also found this theory when I was learning to trade in Forex last few years. In Forex, the more money you invest inside, the lower risks you have to carry. Now you know why those riches can invest not as worry as others.
How to Generate Excessive Cash?
3 ways I will recommend you to do for generating the excessive cash:
- Mange and save your money. This is the most basic and conventional way to let you have excessive cash for investing.
- Start your part time business. If you have a day job, I would recommend you to start a part time business which will allow you to build your business empire while still holding your day job. You can check my post 20 Ideas to start a part time business for more information.
- Start your own online business. This is what I’m doing right now. I want to make money from internet and generate excessive cash for my financial freedom plan. If you want to make money from internet or start an online business, I will recommend you to start blogging. You can download this free ebook for more information. I can tell you that this is the best way I ever found to get started in online business.
Conclusion
Above are just my opinions and thoughts for the 19 years old boy’s question. My recommended path is start generating excessive cash, invest the cash and transform them into passive income, then finally achieve financial freedom. There isn’t just one correct path. Each person has their own path to achieve financial freedom. The most important thing is your passion. If you are not passionate about and love what you are doing, then you may hardly stay focus on it and succeed. The theory is same with business. You must understand your passion and then start a business around it. Then you can stay focus and succeed from it easily.
Do you have any advices for the same question? Why not share it here….
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One Response to “My Answer to a 19 Years Old Boy’s Financial Freedom Question”
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At 19 years old, getting a university diploma might be the easiest way to score a nice job later on -but- I do understand the need for young people to make their wallet fatter.
As such, I recommend identifying a business sector where lots of money gets dealed and find some creative way to become an “in-between”.
For instance, in real estate, that would probably mean identifying the new housing projects in your city, going to see the promoter and offering to be the salesman who will get a cut on each house sold, in exchange for long hours (staring at the walls) in a demo home.
In the previous example, all the houses WILL sell (it’s just a matter of time) so being the “in-between” promises to be lucrative.
This being said, the internet is the best place to make “intelligent money”. Make someone else’s life easier and there’s a good chance you can get paid for it.
Good luck to all young people looking to strike it rich!