What is the first step to becoming financially independent?
No, it’s not making a budget. It isn’t setting a financial goal, maxing out your 401(k), starting a side business, or determining the best asset allocation.
The absolutely critical first step to achieving financial freedom is making the mental commitment.
“But that’s silly,” you say, “doesn’t everyone want to be rich?”
Yes, most people think it would be nice to have lots of money, and daydream about the trips they would take and the things they would buy if they won the lottery or got a big inheritance.
But wishing for riches and planning for financial freedom are totally different. People mistake the “idle rich” lifestyle they see on TV for financial independence, not realizing that most of those “rich” people are deeply in debt from maintaining their image.
Financial freedom doesn’t mean making lots of money, it means making enough passive income to support your lifestyle, and it takes effort. Most people have no interest in the work that is required to achieve and maintain real financial success.
While everyone daydreams about being rich, they deride people who actually focus on becoming financially independent as “greedy”, “snobbish”, and “selfish”. Managing and reducing expenses is seen as being “cheap” or “stingy”.
When you commit yourself to achieving financial success, people will think those things about you. The only way to keep these opinions from holding you back is to stay completely focused on the day that you are no longer tied to a job for your income, and have the freedom to spend your time as you please.
Are you ready to make the commitment?