Last Updated on
Creating financial freedom is not some mythical notion that can’t be understood. It’s a formula, a step by step process that when followed, will allow you to achieve massive results.
We call this Financial Freedom in 10 Years or Less, and it’s broken down into a straightforward formula.
This path to financial success has been hidden from mainstream media for some time while benefiting and expanding the fortunes of those who have access to it. One individual who used this strategy built his net worth up to $100 million. This article uncovers this same advice which will lead you on the very same path to financial freedom and allow you to build your own fortune.
THE DOWNFALL OF DIVERSIFICATION
Now, it’s well known that traditional financial investing teaches us the principle of diversification. Don’t put your eggs in one basket but rather but put a little money here, a little there, so that if one of the funds or asset classes goes down, one will hopefully go up and you have a net negative or at least neutral overall impact.
However, the little secret behind diversification is that you don’t control the outcome and neither does your financial advisor. It is true that it does lessen the risk of exposing yourself and your money to the great unknown, but what you aren’t told is that it’s a no-win strategy as well.
It’s impossible to win the game of money if we diversify.
As long as you’re following the average path, you’re going to get average results at best and achieving this can take you up to 40 years!
Doesn’t the idea of financial freedom in 10 years or less, regardless of your age and experience, sound a whole lot better?
It’s time to eliminate distractions and stay focused on the formula that actually does work.
THE WEALTH PYRAMID
What do we do with money when it comes in? What’s the best route to follow so that we can build this in a way that leads to the quickest, safest outcome possible?
The wealth pyramid conceptualizes the steps that need to be followed, starting off with a solid foundation. This consists of a few components but only one, cash, will be elaborated upon in this article.
The first thing you need is a place to store and grow your cash. We call this a vault. It serves as your liquidity and it becomes your opportunity fund.
We need to seek out assets that get us a higher rate of return by minimizing risk and earn a rate of return in multiple ways. When you have liquidity you have the ability to start to capture and take advantage of these opportunities when they’re there. This is very important to have because when you’re able to take advantage of an opportunity you’ll see it. But if your money’s tied up in places where you can’t touch it, even though those opportunities are there, you won’t see them because you can’t take advantage of them.
Liquidity ultimately serves two purposes: it’s a sleep well account that protects you against the ups and downs of life, and it’s also an opportunity fund that allows you to grab hold of investment opportunities when they present themselves.
After we’ve built up our liquidity, we move up a level on the wealth pyramid by spending our money on investments that possess all four pillars. The four pillars are assets that earn you money through appreciation, cash flow, tax deductions, and leverage. An investment possessing all four pillars is typically owning your own business or investing in real estate. With cash flowing real estate, you take our liquidity, buy one house, take the cash flow that that house generates, build up your opportunity fund and do it over and over and over again so that your property portfolio eventually grows.
As we move a level up on the pyramid we end up with investments that only have two to three pillars. Then right at the top of the pyramid are the investments that only have one of the pillars. As you can imagine, there isn’t much desire to get to the top any faster than we have to. It’s important to focus on the base as this is where we have the most control and less risk. The further up the pyramid you move, the more risk and the less control you have. This is because you’re losing pillars along the way and you’re only left with earning a rate of return in one way.
When looking at various investment opportunities such as cryptocurrency, options trading or anything really, you need to assess where they fall in terms of the four pillars. Until you’re financially free, do nothing except those things that maximize your control and minimize your risk and ensure the opportunity possesses all four pillars.
Financial freedom lies between the investments with four pillars and the investments that have two or three pillars. To achieve this, the formula has to be followed:
FINANCIAL FREEDOM = (Core 4 + 4 Pillars) x V
As you can see, the formula for achieving financial freedom is really quite simple. It’s utilizing the Core Four process which is taught in our course, knowing where to put your money, the vault, and then knowing what to do with your vault which is investing in four pillar assets like autopilot real estate. This process needs to be met with velocity which means doing this as quickly and as frequently as you possibly can.
Begin your path to financial freedom today. Rise up. Live free.
Article originally posted on CashflowTactics
Join their Free Web Course: