Mastering you is probably the most important ingredient in your recipe to financial freedom because without the knowledge, skill and proper mindset, it will be hard to create the lifestyle you want to live.
“Money is just an input. You need to give money leadership and direction — just earning it isn't enough,” says Ann Wilson, best-selling author and founder of The Wealth Chef.
Speaking at the Financial Freedom University Live event in Cape Town recently, Wilson said being financially free means that you have assets, investments, investment properties, stocks and shares and low input businesses that can earn income that pays for the cost of your chosen lifestyle, so you can choose whether to work actively or not.
“It's important that you are clear on what your lifestyle cost you, because the higher the cost of your chosen lifestyle, the bigger the amount of investments and assets you will need to be financially free,” she says.
For example, financial freedom for the Does — a self-employed couple with three children who barely manage to survive the month on their income — would mean having some alternative income sources over and above their self-employment earnings that would flow in consistently irrespective of whether they were working or not...