Do you know what is the best feeling in the world?
Doing the things that you love to do without worrying about the finances!
For me, it's farming..
..for you it could be cooking, music or travel.
If you make money from doing what you love to do then you are one of the most luckiest persons on the earth.
For example, you love travelling and travelling takes care of your finances..
You are fitness freak and fitness helps you to pay your monthly bills..
Katie & Ben founder of twowanderingsoles.com make more than $10,000 in a month from their travel blog.
And at the same time.. most of people don't travel because they feel they don't have enough funds.
But this change wouldn't happen overnight.
The financial worries like monthly bills, EMIs, child education wouldn't let one to get out the 9 to 5 job.
In this email I am going to share how you can start doing what you love without worrying about finances.
Financial worries haunt you only if the finances aren't managed well
First step is to manage your existing finances well
You can start managing your finances by
- Keeping track of your expenses
- Make a disciplined investment approach
- Timely payment of credit card bills
- Avoid taking loans
- Take Health & Life insurance
Medical and life emergencies are the biggest reason for financial worries, isn't it?
- For health insurance, buy a family floater health insurance even though you have employer insurance.
- Pick the term life insurance plan over endowment plans or ULIPs.
I am going to send separate emails with more details on all the financial management topics in the upcoming days.
Just understand the 4 Phases on the way to Financial Freedom.. that's enough for today.
Phase 1 : Create an emergency fund
Emergency fund would give you courage to take risk in the life.
It does not matter if you are earning a high or low salary. An emergency fund is your own banker at home. You don't have to worry about money if something unexpected happens in life.
I recommend you to have an emergency fund equal to at least 12 months of your monthly expenses.
Phase 2 : Start Side Hustle
Start side hustle in the area of your interest - whether it is writing, cooking, travelling or video making.
Get 2 slots of 2 hour each for your side hustle on the daily basis. One in the evening after coming back to the office and second in the morning by waking up early.
Looks like hard work.. well.. you can not get financial freedom by spending 3 hours daily on netflix or social media.
I have sacrified my sleep, TV time and social media from 2015 to 2018 when I was learning & growing my online business.
Make your choice!
Start your own blog, youtube channel or take freelance work.
This will help you to build up your knowledge, experience and network in the industry. Slowly but evenly, you would start making small money from the side hustle.
Phase 3 : Switch your part time to full time
Once you start making regular income from your side hustle (that you love to do), you can replace your side hustle with your full time job.
Last Phase : Create multiple income streams
Create multiple income streams so that you wouldn't depend on a single income stream. Single income stream can create financial disturbance in case you lost your primary source of income.
You can create multiple income streams as
- Income from blog
- Income from youtube
- Freelance income
- Rental income
- Interest & Dividend income
- Long term income from stock investment
- Day Trading
Does that make sense?
If you liked this email lesson then please reply to this email.
your reply would help me plan & improve the next lessons.
Hit reply.. and let me know what do you love to do?
Pardeep Goyal
PS:
The next lesson is about investing your income.. that's the fundamental step of financial management.
Money In - Money Go = Profits & Gains
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