Today, we’re describing the 10 steps you need to take to start building your path to financial freedom, the actions you can undertake even if you are starting out with almost nothing. The point is that many financial experts will give you the common conventional advice, which will keep things nice and slow, but if you want to reach that freedom quickly, you have to know how to use your money as a tool! Learn why conventional wisdom doesn’t work, why you should have a side hassle, and what the good use of debt is.
What You Will Learn About 10 Steps to Financial Freedom (that one is talking about):
- Why conventional wisdom about financial freedom won’t help you achieve it
- How to make the plan to achieve your goal
- Why you should get a job
- Why your primary focus should not be on paying off your debt
- The reasons to start a business
- The inexpensive approach to becoming an investor
- What the good use of debt is
- When to start investing in real estate
- Watch the full video version of this episode on YouTube!
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- Grab my book, Epic Freedom ($1)
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Matt Theriault: This is Theriault Media. Having money is not everything, not having it, however, that is. You see, when you don’t have money it becomes a source of frustration and anger, and really just the lack of money it causes us to make bad decisions we otherwise just wouldn’t make. I mean, it’s true money doesn’t buy happiness, I’m not saying that, but poverty doesn’t buy anything. If you wanna be free in this world you need money to get there, and here’s the deal, there are no shortage of financial experts ready to go out their steps to financial freedom, but most of them are steering you wrong because what they do is they confuse financial security with freedom. If you want financial freedom, there’s a much faster way to go about it, and we’re gonna go through that step by step, even if you’re starting out with almost nothing on today’s episode of Financial Freedom Friday.
Hey, Matt here from Epic Real Estate, and you know most financial experts steps, their steps to financial freedom aren’t necessarily wrong, they’re just gravely out of sequence, and that is really slowing down the progress of their clients, or their students, and their followers. For example, if you wanna go slow here’s what you do, one, eliminate your debt, two, pay off your home, and three, max out your 401K. Sound familiar? Yeah, that tragically common conventional financial advice, it’s gonna keep things really nice, and slow for you. If you’d like to go fast you’ve got other business to tend to first. Here’s what I mean. Money, it’s a tool, that’s it. Don’t make it mean anything more than that, nothing more, nothing less it’s just a tool.
The conventional wisdom has you locking up those tools in the shed before the job is done, and that wisdom it has you sitting out under the hot sun finishing the job with your bare hands. Imagine building a house with your bare hands. No hammer, no screwdriver, no wrench, no saw, no tools. It’d be much more difficult, and take far more time than if you had the tools to use. Here’s what we’re going do, what we’re going to do is we’re gonna go back into that shed, we’re gonna drag all of those tools out, and we’re gonna leverage their use to get the job done, and we’re gonna do it with significantly greater ease, and speed. If you got the tools it’s much easier and much faster, and then, when we’re done we can then put all those tools back in the shed where they’ll be safe from the elements, and where you’ll now be free to enjoy that hot sun, but instead of working under it, you’ll be sitting under it by the pool.
If you wanna change your future to something like that it means you’ve got to change. A big change in your results, it’s gonna require a big change in you. Specifically, when it comes to the sequence of your actions. That’s what’s gotta change. Let’s get started with a different sequence of actions. Number one, get a new plan. What I mean by that is define what freedom is to you? What will your day to day life look like when you are free? And then, attach a monthly dollar amount to what it will take for you to live that life of freedom, and that’s gonna be your financial freedom number. Notice two things here, I said monthly dollar amount, meaning a critical part of this fast plan is thinking in monthly income as opposed to a big bank balance.
We’re abandoning the saving mentality for a streaming one. Second thing, I said, monthly dollar amount, meaning you’ve got to know your numbers. Without knowing your numbers you’ll have no hope of ever controlling your numbers, and once you’ve got control of them, you’re gonna have to track them and measure them as you go, because what gets measured, what gets tracked grows. A hack that I use for this, I use credit cards for everything. It makes it really easy to track my expenses, not to mention maximizing all of the rewards, and the cashback perks, all that stuff, and then, what I do is I just pay them off at the end of the month, but it makes it really easy to track.
Once you’re clear on what freedom looks like, the monthly stream it’s going to take to support it, now all you gotta do is make the decision. Commit to doing whatever it takes, because most people want to be free until it’s time to do what freedom takes, and many people they come to discover that it’s just not that important to them. If you’re not ready, that’s okay. You don’t have to be free. The vast majority of people aren’t, but if you indeed want it, and are ready to go for it let’s go to step two. Get in motion. A body in motion tends to stay in motion. Nothing happens until something moves. You’ve gotta get moving, but wait, “I’ve gotta get ready, I’ve gotta think this through, I have to analyze, I have to talk with the spouse.” Baloney, nothing happens until something moves.
Besides, you can’t steer a parked car. Refer to your plan, and go. Travel as far as you can see, and when you get there you’ll see further. Three, get a job. What? You weren’t expecting that one from me, were you? Listen, you gotta eat, you need a place to sleep. Stabilize yourself with a paycheck for life’s necessities. This fast road to financial freedom that we’re on right now it is fast, but it’s not gonna happen overnight, and tonight, you need to eat and sleep, but before getting paid. Meaning, pay yourself first. You should have at least four bank accounts. You need an investment account, a tax account, an emergency account, and a personal account.
For example, let’s say you get paid $10, 000 a month. Here’s the goal. This is the goal, $2, 000 goes to your investment account, $4, 000 goes to your tax account, $1, 000 goes to your emergency account, and then, you’re left with $3, 000 to live on. That’s the goal. Remember, whatever it takes, because if you force yourself to live on a small amount like this, it won’t be long that you’re living on a small amount like that. You want this fast, right? This is how you do it. Stick with me. Number five, pay your minimum credit card payments, minimum debt payments. “What? Don’t I wanna get rid of my debt?” For the most part no, not first. We’ll get there, but not now. The fastest path to financial freedom is gonna come through increasing your streams of income. Nobody ever achieved financial freedom by just eliminating debt, nobody. Don’t pay off your credit cards right now.
In fact, get some more. Yeah, you should have at least five credit cards. Establishing credit it’s really important, it’s not essential, but having good credit will accelerate your trip to financial freedom, and we’re getting there. By the way, you can go to epicfastfunding.com to get some credit. You can get approved in just a few minutes for up to $150, 000 at zero percent interest for 12 to 18 months, epicfastfunding.com. All right, once you’ve got your credit cards what, you wanna use those to pay for everything, and then, you wanna pay off all new charges at the end of the month. I don’t want you to pay off your previous debt, but I don’t want you to add to it either. By paying the new charges off at the end of the month, that’s gonna build your credit, as well it’s gonna help you track everything, or it’s gonna help you, it’s gonna make it very easy for you to track your expenses.
Number six, get a side hustle, start a business, and here’s why. Number one, if you want to go fast, it happens fastest by working to make a buck as opposed to sacrificing to save a nickel, and two, starting a business it’s your number one expense reducer. It slashes your biggest expense in life, taxes, so start a business. You need more income, you gotta cut down your tax liability. Number seven, get a house, “What? Matt, don’t you always say to rent instead of buy?” No, what I actually say is do whatever is cheaper with regard to the monthly payment. If it’s cheaper to buy than rent then buy, and if you don’t live in an area where that’s possible, it’s time to move. Remember whatever it takes. Now, even though you will be living in this house, you want it to have the ability to cash flow because you’re not gonna be living there long.
Now, because you have a job now, you’ve stashed money in an investment account, and you’ve built up your credit score, because you did all of those things first, you’re now in a position to take advantage of an FHA loan on this house by placing only a 3% down payment, very inexpensively. You’re gonna stay in this house for two years, and then, you’re gonna do it again. You’ll move into the new house, and then, you’ll keep the old house as a rental. You’re going to be an intentional investor as opposed to an accidental one, and this is how someone with just a little bit of money can get started, and make it happen for themselves. Number eight, get valuable. You see during this two year period, you’re going to invest in yourself to increase your skill sets, and build your relationships. You can do that through training, and classes, and coaching, and masterminds, networking, whatever it may be. Your skill level and relationships will expedite your financial freedom like nothing else.
Number nine, invest in your business, increase efficiencies, increase production, increase sales, increase income, increase that bottom line, and do all of this even if you have to leverage debt to do it. If it increases the monthly bottom line, that’s a good use of debt. Now, finally, here we are at number 10. Now, it’s time to invest in real estate. As you increase your income through your skill sets, through your relationships, and your business and you continue the pattern of paying yourself first, the cash that you stash in your investment account will grow much more rapidly, freeing you up to the into more income-producing real estate. Real estate, it’s the final frontier where the average person has a realistic shot at creating epic financial freedom, and don’t stop either. Build your portfolio, build your experience, build your track record. Stay right here in this little lane here, keep repeating this step over, and over, and do not diversify until your passive income from your real estate exceeds your financial freedom number.
And then, when it does keep going. Keep going to create a monthly surplus of passive income. You see, in this sequence, doing it this way you have freed yourself before you freed your money, and now this surplus of passive income that’s gonna go to work to take care of all that other stuff that we talked about earlier. All those other things that Dave Ramsey and Susie Orman want you to do. You don’t want to work, and sacrifice to eliminate your debt that the way that they tell you to, you don’t wanna work, and sacrifice to pay off your mortgage, you don’t wanna work, and sacrifice to max out your retirement accounts. No, you do want to work, and sacrifice to build your passive income so that your passive income can do all of that other stuff for you.
With this sequence, you are now financially free, and your money continues to work for you. All of them, financial gurus, want to free your money while you still work for it, much better when it’s working for you, right? Right. Go ahead, share with me below. What did you learn? What did you notice about simply changing the sequence of events? And then, I’ll see you next week on The Epic Real Estate Investing Show for another episode of Financial Freedom Friday. Take care.