My Honest Advice to Someone Who is Struggling Financially

Achieving financial freedom is a journey that involves three critical steps. Here's a summary of how you can work towards financial stability and ultimately, financial freedom.

Step 1: Reduce Investing in Liabilities
Firstly, prioritize paying off high-interest consumer debts like credit cards and personal loans. High-interest debts can significantly hinder your financial progress. For instance, if you’re paying 30% in credit card interest, it’s challenging to find investments that consistently outperform this rate. Focus on clearing these debts before considering investments in areas like stocks or real estate.

Step 2: Invest in Cash Flow Generating Assets
Once high-interest debts are managed, shift your focus to investing in assets that generate cash flow. Real estate is a prime example, as it can provide consistent monthly income. For instance, a rental property yielding $100 per month can be reinvested into long-term stocks like Apple or Microsoft, creating a cycle where assets generate further assets. This approach builds a solid foundation for financial growth.

Step 3: Let Assets Create Assets
Reinvest the returns from your assets into more assets. This compounding effect can accelerate your wealth growth. For example, the rental income reinvested in stocks or additional properties can significantly boost your financial position over time.

To sustain this momentum, follow a crucial principle: spend less than you earn. This simple yet often overlooked rule ensures you have surplus funds to invest. Avoid lifestyle inflation, where increased earnings lead to increased spending. Instead, save and invest the difference.

Financial Journey Stages

1. Financial Stability: Ensure you have enough to cover basic expenses like food and accommodation. This is your foundation.
2. Financial Confidence: Achieve a state where you can cover all your expenses without having to work. This brings peace of mind.
3. Financial Freedom: Continue investing and reinvesting until you reach a point where your assets generate enough income to sustain your lifestyle indefinitely.

Understanding and leveraging the power of compounding is crucial. Compounding assets leads to exponential growth, while compounding liabilities can spiral into financial distress. Focus on the former to ensure steady progress towards financial freedom.

By following these steps, you can break the cycle of financial struggle and work towards a more secure and prosperous future.

#financialfreedom #debtfreejourney #investwisely #financialstability #wealthbuilding #smartinvesting

If you’re a business professional looking to master sales then download Ruble's book "90 Days Life" and transform your sales skills today!

🚀 Click the link below to get started and conquer stress!

https://shop.rublechandy.com/90-days-...

► Follow Ruble Chandy on Social Media

Instagram-English:   / rublechandy  

linkedin:   / ruble-chandy-08bba626  

Facebook:   / rublechandyfan