In a recent video for my YouTube channel, I go over the five things that you need to become financially free in 2023. Once you have these 5 things in place and take action on them, you will find that financial freedom is much more attainable than you might think!
I would highly recommend watching the full video (above) until the end, as it has very important information about the exact process you need to follow. In this article, I will briefly summarise each of the 5 steps.
1. A goal
The first thing you need is a goal, a reason why you want to be a millionaire, you want to be in property, or any business. Things will get hard and you will need a reason to keep going. Your goal might be you want to retire your parents. It might be you want to travel the world. It might be that you just want to not be in a job that you don't like for the rest of your life.
Remember, everything is hard in its own way. Being poor is hard. Getting and staying rich is hard. Becoming financially free is hard. Working a job is hard. Choose to do the hard thing with the best long-term outcome for you and your family.
2. A target
The second thing you need is a target. Your target will be the amount of money you need to be making on average every month in passive income to cover your living expenses. Financial freedom is not being rich. Financial freedom is being free. Financial freedom is having enough passive income that covers your life, so you don't have to worry about money.
Before you start thinking about becoming rich, you need to have enough passive income that even if you lost your job or quit, you would be able to live. That's not the end; that's the beginning, but that's the first thing we need to hit. So be really clear on your target.
3. A vehicle
The third thing that you need to be financially free is you need a vehicle that's going to get you there. If you're wanting to go from point A to point B, you need to know, are you going to take the bus? Are you going to get a car? Are you going to learn to drive? How are you going to get from point A to point B? The same is true in property investment.
You need to think about your target and choose a strategy that suits it. Maybe you need to reach £2000-3000 a month in passive income. Then rent-to-rents might be a good strategy, for example. Find 3 properties that net £1,000 per month each and you have already met your target!
The fourth thing you need to be financially free is a support network around you. You need a network of trainers, success buddies and to be in the right environment. Environment is stronger than willpower. You can have all the willpower in the world, but you're going to get blown flat, and you'll lose it after a few weeks potentially.
I don't know why people continue to hang around sceptical losers that are saying, “What are you doing?” and, “I'll just play it safe.” Find new friends, new mentors, new rooms, new environments.
The fifth thing that you need is systems and procedures in place. The ultimate definition of financial freedom is when your passive income covers your living expenses. What does passive mean? Passive means it's coming in without you doing much. How's that going to happen? Systems and procedures.
For instance, if you're doing Airbnb, you need to have a channel manager; you need to have key safes; automated emails; you need the whole thing systemised. If you're doing deal sourcing, can you systemise deal sourcing? Yes, you can. How? By hiring staff, training staff, having operations manuals. You can make anything passive when you understand how to systemise things and how to hire people.