20 February 2008 140 views 2 Comments Print This Post  Email This Post

Metaphorically speaking, we’re all on a road to financial freedom; some of us are further along than others. Goal setting is important because it pinpoints the destination. You must know where you’re going first. Imagine driving down a road not knowing your destination. Once you know your destination, be it a certain net worth or the point when you can live off your passive income, you can select which road you want to take. You may consider starting or buying a business of your own. You may invest in stocks, real estate, or both. Like physical destinations, there is usually more than one way to get to it. Some roads are just more curvy and bumpier than others. Others have more stop lights and traffic. 

Choosing the right course

I always believed in sticking to what you know. Just look at Donald Trump and Warren Buffet, who stuck to what they knew and mastered their respective fields. It’s the worse when you jump into a business or investment because you heard so and so was making money in it. It’s like friends who tell you about a short cut to the local mall. If you take that short cut for the first time, there’s a high chance you’ll end up getting lost than if you just stuck with the road you were familiar with. I suggest reading up on entrepreneurship, stocks and real estate. While diversification is fine, but we should have one primary wealth building route. Once you determine that, stick to it, learn more about it and get better at it. With patience, you’ll see yourself making significant progress on your road to financial freedom. 

No Short Cuts

Once you’ve mapped out your course and destination, don’t get side tracked. There is no shortcut to your destination. I’m talking about things like get rich quick schemes and so-called programs that teaches you how to make millions in real estate or in the stock market. If these things worked, everyone would know about them and they’d be all over the local news. Never be in a hurry to reach financial freedom. It takes time. The other day I noticed a guy in a black mustang weaving in and out of traffic, in an effort to get to his destination faster (or he was trying to be cool). I stayed in my same lane and after about 10 miles down we both ended up next to each other. Short cuts don’t work. All he did was increase his chances of getting a ticket or getting into an accident. 

Distractions

Distractions are the number one cause of accidents when driving. Don’t get distracted during your course to financial freedom. If you’re a stock market investor, stay in the fast lane regardless of what the market is doing. There will always be traffic jams along the way, but there will also be stretches of open road. Whenever there are worries about a recession, terrorism, or the weak dollar, there is a slow down. I can’t remember how many times I was driving on the freeway and encountered traffic, only to find out that there was an accident on the other side of the road. People just started slowing down to stare. That’s happening right now in the stock market. People are slowing down because they hear all this bad news even though it doesn’t directly effect them. Never mind those people, stick to the course and remember that it’s a long term investment. Set your investments on cruise control and don’t stop until you reach your destination. I’ll see you there.

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