One of the reason people is unhappy in their living is because lack of money and the feeling of security for their finance.

Today, we need money to settle a lot of things and problems. Basic needs such as food, clothes, houses, medicines are consuming money. We need money to survive. Therefore in order to feel the sense of real security in life, we must have some money left behind which give the sense of security to us

We all love to live in a life that full of security. No body like to have the challenges in their finance all the time. We need security to feel the peace. So achieving financial security is the basic goal that everyone of us should have. Besides that, before you start any investment, you are advised to cover all your basic needs and achieve financial security. This will not put you or your family in hot water just in case you lost money in investments.

What Is Financial Security?

My Personal definition for financial security is a level of personal finance where you don’t have to worry that you are not enough money just in case anything happen in your life. You have the true security for your life because you have all the necessary money ready to cover whatever unpredictable circumstances happen in your life. Besides that there are also no loopholes in your finance that might let you down such as debt or persona loan.

Therefore based on this definition, I have listed some of the requirements that we must have in order to achieve financial security.

1. Emergency Funds. Ok, it is very important to have an emergency funds ready for you and your family. Just in case anything happen, you have money to settle your problems. For example, if you lose your job, this money can let you to cover all your basic expenses while you can continue to look for a new job. Build up this emergency funds even you are in debt. If you are in debt, you can build up 1-2 months of emergency funds. After that you can continue to pay your debt. 1-2 months of emergency funds are better than none.
2. Become debt Free. Debt is dangerous and risky if we don’t know how to manage it properly. Therefore, I always encourage people to be debt free. There are good debt and bad debt tough. But if you don’t know how to handle your debts, you are advised to pay down the debt first. Debt is just like termites which can eat up the support of your finance. It can ruin and make your life fall down if you don’t handle it properly. So become debt free first and clear all the bad debts.
3. Saving Account. It can really give you the sense of peace and security to see that there are money left in your saving account. It is really nice to see this amount of money keep increasing. Saving account is a must because it is a fund for us to move our personal finance to the next stage. Maybe you want to start your business, maybe you want to invest or even save it for your children education. Well, this is very important for you to get into the next level of personal finance, Financial Comfortable.
4. Insurance. Life is hard to be predicted. There are things that might happen and affect our normal life. So we must buy the insurance to cover all this unpredictable things. Personally, I think an insurance that can cover death, medicines and illnesses is important for us. A life insurance is a must for everyone of us.
5. Maximize Your IRA Potential. Even though we have different financial goal to hit but we cannot forget our retirement. We should build the nest of our retirement from time to time. So spend sometime to manage your IRA and maximize its potential so that your retirement is under a protection.

It is really hard to live in a life that full of stress and worries about not enough money. Financial security is a stage that we must achieve for the peace of life and happiness. So please set a goal to achieve financial security as fast as possible. Good luck.

People with different level of income can achieve financial freedom as long as they know how to manage their money properly. But a matter of fact is that people with higher income can be financial free and achieve their financial goals faster. In fact, high income is a must for those who want to achieve financial freedom and retire earlier, like me.

I want to achieve financial freedom by the age of 30. So I must boost my cash flow speed to achieve this goal. First of all my income must be high and I must know how to manage the income to build more passive income assets. There are many options I can choose to generate high income but I never include MLMs in my plan even though they always promote the theory of financial freedom in their programs.

Multi-level Marketing

MLM is multi-level marketing and here is the definition from wikipedia:

Multi-level marketing (MLM), also known as Network Marketing, is a marketing strategy that compensates promoters of direct selling companies not only for product sales they personally generate, but also for the sales of others they introduced to the company. The products and company are usually marketed directly to consumers and potential business partners by means of relationship referrals and word of mouth marketing.

The Reasons Why MLM is Not For Me

As you can see, the plan of MLM actually quite match the requirement of financial freedom. We can leverage on MLM to generate more passive income by introducing more “downline” or members. This is why many MLM companies use the terms of financial freedom to promote their programs to people because they are being promoted as a system to generate passive income.

However, no matter how good a MLM system or products are, I never have any interest in MLM. I even never think that I want to achieve my financial freedom through them. Anyway, more and more people are not feeling good with the words MLM.

Here are the reasons why I think in this way:

• MLM System is too money oriented. I found that many MLM companies are too concentrating on making money. They are too promoting the concept of “money making” to people until they forget what is the real meaning of running a business. This let me feel that MLM is not selling any products but money making opportunity to people. MLM system is only a marketing system and the most important part is their products and contributions to the society. This is the main mission for a true business. However, what I found is they are just promoting their MLM system and carry out the message how much money we can make from their system. They should pay more attention on their products and services and not how much money their memebers can make.
• MLM products are too highly promoted. Well, everyone who joined MLM company is trying to make money and be a good sales person. Guess what, they are too highly promote their MLM system and products to people. They always claim their products are so different and rank no 1 in the market. I even met with some friends of mine promoting their MLM products exaggeratedly. After doing my research, I found that their products are having problems and some of them are being banned in different countries due to the side effects to consumers.
• The markup margin is too high. How people can make money from MLM company? Commission from different level! As the name indicated, mlm company has to pay commission to multiple level of people. Some of them even pay up to 5 level of people. So Can you imagine how much margin they have to markup on their products so that they can pay out so much of commissions so many levels of people? This make me doubt about their products… and I don’t wish people around me use this kind of “expensive” products because I want to make my commission.
• The Relationship for prospecting. How a new MLM marketer get started to promote their products and systems? Yes, through their relationship. They will introduce their companies to their relatives and families. they will hard selling to their friends and anyone who within their networks. Yes, we can leverage our network and relationship but I won’t leverage on them to make money especially by selling so called “business opportunity” and expensive products and services to them. I have been approached by several friends who are MLM marketers. For me, I really tired and lazy to answer their phone calls or meet with them because they always leverage on our relation to make money. I hate this process so I will never join any MLM companies for this purpose.
• Not Everyone can really Make “Big” Money. Yes, there are many people who is making money from MLM and in fact, some of them are even making big money from the MLM system. But not everyone can do this. Based on my observation, people who can make money, especially big money, are those consider as the pioneer of the MLM system. They are the first group of people who joined the system. I think I have no luck to get into a system at the early stage and MLM is not suitable for me.

Conclusion

MLM always emphasize that it is a business and everybody who joined the MLM system are business owners. I have different view on this. For me, the MLM companies are running the business and not the members. Everyone who joined their system are sales persons who are trying to recruit even more sales person.

Above are some of my points about MLM and I meant no offense by the remarks.

This is an article that discusses the importance of “WHY” in the process of achieving financial freedom. Without a “WHY”, you go nowhere in your journey to financial freedom. Let’s find out more below.

Do you want to achieve financial freedom? If Yes, do you have the concrete reasons on WHY you must achieve it?

I have a few friends who also like me and want to achieve financial freedom in their life. However, they never take any practical actions or have any serious plans to achieve it. All of them know what they want for their life. They want to stop working for money. They want to travel around the world at their young age. Some of them even want to watch their favorite football team practicing every day. So I can say that they know the “WHAT” they want for their life. They want to achieve financial freedom!

However, they never take any practical actions or have any plans to leverage on their job and become financial free. They just keep thinking their dream but never take any serious actions to achieve it.

Do you know why they act like this? This is because they don’t have any strong reasons to support their “WHY” to achieve financial freedom.

The WHYs for Being Financial Free

You want to achieve financial freedom but it only just an end results that you want. In fact, it is nothing and it won’t give any motivation for you. Just like my friends, they want to stop working for money and do something that they want to do. They know the lifestyle (end results) that they want but it only a dream for them if they don’t take any serious actions.

Knowing the “want” is not enough to support you to achieve financial freedom. You must know your WHYs to support your dream and your “WANT”, so that you will take actions.

A “WANT” usually is a pleasure and “WHY” is usually a pain for us. According to the world famous success coach, Anthony Robbins, human always act to avoid pain and gain pleasure and the power to avoid pains is usually greater than the power to gain pleasure.

So from here we know that it is not enough motivation for us if we only know what we want. It only a pleasure for us and pleasure has the least effect over our motivation. So we must build some WHYs around to add more will power on our goals. If you have the enough why to do something, your mind and body will take action automatically!

My Suggestions on the WHYs to Achieve Financial Freedom

If possible, please think some of the most financial pains that you have right now or before as your main reasons.

For example, before this the main reason why I want to achieve financial freedom was I don’t want to work hard like others to make money. However, this why is not strong enough and I never take any serious actions at that time.

Until one day I found my new why that I want to achieve financial freedom because I don’t want to have those financial disasters that my parent had – being in debt and not enough money. My parent has no choice and suffers from not enough money for so many years. From them I know that the pain of not enough money and also lack of choice. Then I set my mind that I build enough wealth to let both my parent and me financial free!

Well, after that I start to take some serious action and I can feel that I’m approaching my goal every day.

Besides that please change and modify your way according to your personal experience. The more actions I take, the more I learn and my experience are kept increasing. So through my new experience, I will modify and add more WHYs to support my goal so that I am motivated and take more action easier.

Last but not least, write your whys down. For me I type it in my planning excel file and save it in my notebook. I will open it every day and read through it. So I can remind that I made a goal to achieve financial freedom with several whys I must do this.

Conclusion

Please remember that reasons or WHYs can be your great motivation power. Besides achieve financial freedom, we also can use this theory and apply it in any goal that we want to achieve. So if you found that you are not motivated enough to take some action towards your goals, then your WHYs are not strong enough. So you just think some concrete and reasonable WHYs for your goal, write it down and read it every day. Then you will be motivated enough to take action.