Tips To Achieve Financial Freedom | Why Didn't They Teach Me This in School? | Lab Of Rich

Tips To Achieve Financial Freedom

In this blog, you will learn about Tips To Achieve Financial Freedom. This information is taken from the book "Why Didn't They Teach Me This in School?" By Cary Siegel.

Our school life tells us the way till we get a job but after that, we have to complete our wealth creation and financial freedom journey ourselves. At that time we make a lot of mistakes and if we avoid those mistakes we can be financially free very fast.

The author of this book completed his college degree from a very good college and achieved his financial freedom at the age of 45. But according to him his college degree only helped him in his first job. If he got this financial freedom knowledge early which we will discuss in today's blog then he must have achieved his financial freedom goal in his 30s.

Some people make blunder mistakes early on in their life due to which it is next to impossible for them to achieve financial freedom.

Without wasting much more time let's discuss the Important points for achieving financial freedom.

Marry The Financially Right Person

This doesn't mean that you have to marry a rich person, chartered accountant, or finance guru. Choosing a financially right person means that you have to choose a partner who has good financial habits and a good understanding of money because maximum people when they go on a date or meet their partner before arrange marriage then they show themselves as a rich person.

To make the partner happy they give them expensive gifts, and take them on vacations, but this cannot be continued for their whole life and because of this many problems arise after marriage.

When you spend a lot of money on starting then you are building wrong expectations in your partner's mind because your partner will think that this is your lifestyle and this mistake is done by the majority of people. After 3-5 years you will not be able to afford that lifestyle.

It has been proved by many researchers that the 2 main reasons due to which couples fight are money and time. If your nature is of savings and investing and you genuinely think of your family's future but on the other hand your wife's nature is of spending money and doing Show-off i.e you are thinking of long term and your wife is thinking of the short term, then you will both have clashes on small things.

Therefore if you are married then discuss your financial goals with your partner and explain to them why you are taking this action and what will happen in the future by taking this action. If you don't have your partner's support then 99% chances are that you will not be able to achieve your financial goals.

But if you are not married then tell your financial condition to your partner because some or the other day they will know your reality. You can ask them questions to check their financial knowledge and try to understand that they love to save or spend.

In our first meeting, it may be awkward to discuss about money, therefore you can ask them open-ended questions like "What would you do if you won 10 Crore in the lottery?" and try to understand their mentality. This is an open-ended question and will lead to a good conversation. 

Importance Of Connections

You are going to need the help of many people in the journey of your life, this thing is guaranteed. Therefore you need to maintain your connections between your first job or school and college. 

For example- Suppose you had a friend in your college and now he is on a good post in some company. Then with his help, you can easily get a job in his company.

It is possible that your friends are chartered accountants, lawyers, investment experts, property advisors, and other professionals and you will need their help in your life.

If you are an expert in a field then you will act as a magnet and everyone would like to build their connections with you.

Alert From Get Quick Rich Schemes

The only people getting rich from getting rich quick schemes are the people marketing and selling them. Therefore, be alerted from people who are selling a get quick rich scheme because there is no guarantee that you will become rich or not but it is 100% guaranteed that the people selling the scheme will become rich.

You should also stay away from the people who believe in getting rich slowly because ultimately you should follow ‘get rich surely’.

Examples of some schemes you should stay away from - 

Pyramid Scheme - In these schemes, you join 2 people, then they join 2 people and this becomes a chain and the person on top will earn more money and the lower one will always struggle. These are timepass and money waste schemes.

Ponzi Scheme - In these schemes, you are promised a guaranteed return of 20%-50% annually. You will get good results in starting and before you can recover your full amount these people run away with your money.

Debt Is Bad

This is not a new thing to know because deep down we all know that debt is bad and all successful investors and businessmen give the advice to stay away from debt but then also many banks and financial institutions will tell you that taking out loans is a good thing and make you count its benefits.

But why do they give you this advice?

So the answer to this question is that they earn millions and billions with the interest you pay.

The source of income of those who will advise you to take a loan will depend on taking your loan. Those who will advise you not to take a loan, their income will not affect whether you take a loan or not and they are settled in their life. If you take multiple loans at a time then you will get trapped in the loan trap and will not be able to become financially free.

Therefore buy those things which you can afford easily and when it comes to a credit card then just say no to credit cards and never get a credit card in college. If it is very necessary for you to buy a credit card then just take one credit card and make sure that you do not miss any payment of the credit card.

Housing Lesson

Don’t buy a house until you are settled. Here settled means that you have a good job from where you get a good income or if you are doing a business then your business gets settled.

When you are in your early 20s then you are in a growing stage and you may also have to change your job and city or country in many conditions. If you buy a house in your early 20s then you have to pay a big amount of your income in your house loan and there are many hidden costs like property tax, monthly maintenance, commission, repairing etc.

Therefore at an early age live on rent or with your parents.

Some tips are given by the author which may help you a lot.

• Take the house down payment instead of spending too much on the wedding
• Read every line of the contract you sign
• Make no oral agreements
• Follow 3 P’s (Passion/Politeness/Persistence)