Money is obviously an extremely important resource to live a happy lifestyle but the route to achieve financial freedom isn’t an easy one. In most cases this journey takes years and even then people find it difficult to completely disengage themselves from the idea of money. Statistically the average american works for about 34.4 hours per week to support themselves financially. This number fluctuates according the economic status of the country and also the type of lifestyle an individual lives. Being completely liberated financially is not a small feat, very few people are actually able to live a comfortable lifestyle and live without debt.
Kids will not be able to face the burden of financials as they are supported by their parents during that time but as they grow up, this will end up as a pressuring matter that looms over their heads. At a young age kids are only thought to save and then to use what money they have already saved to purchase whatever they want, they aren’t taught the concepts of actually making money. 90% of kids make their ‘earnings’ from relatives or from birthday presents and well this is all well and good by the age of 15/16 they start realizing how expensive things actually cost.
Even at this point many teens choose to be ignorant and rely on funds from their parents instead of finding creative and respectable ways to form an income. This is due to the fact that teens are rarely exposed to Money management as well as good financial studies. It’s very rare that they are taught ways to save up for college, buy their first car or even how t manage their credit score. Most people don’t even know what is a FICO score even when they turn and this is what causes the youth to later face financial difficulties. Knowledge is strength and so people should be equipped with all the required skills regarding money making at a young age.
Endless Spiral of Debt
According to Experian’s 2019 Consumer Debt Study, total consumer debt in the U.S. is at $14.1 trillion, with Americans carrying an average personal debt of $90,460. That may not seem like a huge number if you take into consideration car loans and house mortgages but still having a net worth of a negative value should be avoided at all costs. We have grown up with the thought that a house or car loan is to be expected when in reality that is a false mindset. Relying on credit is something that should be avoided at all costs because you will end up digging a hole that just keeps getting deeper.
A survey of 2,042 18 to 24 year olds, conducted for the Money Advice Trust by YouGov, found that 37 percent are already in debt, owing an average of £2,989 (excluding student loans and mortgages) – with 51 percent of adults under 25 reporting that they regularly worry about money and 21 percent losing sleep as a result. Kids today grow up with the constant need to live luxuriously when in realty they may not have the funds to back those expenses. This is where things start to take to turn as most people get into money lending and having to deal with loan sharks.
College campuses are always filled with booths that encourage student to get a credit card. These wall street businessmen throw around some fancy numbers that idiotic college students can never comprehend and offer up a free t shirt to seal the deal. Its very rear that students look into the logistics of an agreement and this is how they end up putting themselves in a precarious situation from a financial perspective. It may all seem fun and good in the beginning but that just isn’t the case in the long run. You cant live a good life without shedding blood, sweat and tears because that’s just the reality of life.
Building Multiple Incomes
There is no longer such a thing as a having one job, that kind of money just isn’t enough to live a comfortable lifestyle. Nobody can earn millions on a monthly basis from just one core job, it’s just unheard of at least for the average working class citizen. This is why people should start building multiple sources of income that capitalizes on different fields. Its never a good idea to keep all your eggs in one basket and this metaphor applies for work life too. It is understandable if you want to work as an engineer, lawyer or whatever it is that tickles your fancy but the thing to realize is you should also dominate a completely different field.
Reason being is that you never know what may happen to the field you are currently pursuing. Maybe 20 years down the line engineers may be obsolete or there may be too many qualified engineers but with no job demand. Attaining financial freedom can only be done if you go the extra mile and break the norm, if everyone has one job you have to start hustling and finding ways to build up your finances at a young age. Having money at a young age is honestly a plus due to the existence of compound interest, one of the most powerful tools in the financial world.
One of the most powerful forms of income is passive income, this is due to the fact that a passive income constantly generates revenue. This is the form of income you want to start building up at a young age. Passive income is earnings derived from a rental property, limited partnership, or other enterprise in which a person is not actively involved. As with active income, passive income is usually taxable. However, it is often treated differently by the Internal Revenue Service (IRS). It is a form of earning generated after doing a one off job for instance affiliate marketing, youtube, dividend stocks or even high interests saving account.
Being financially free means the ability to be above money altogether. this is something that everyone should aim to accomplish as it no longer places an absolute value on the concept of money instead it allows individuals to view others things in life to be more valuable. We all grow up to learn that wealth is nothing in the grand scheme of things yet we spend our entire lives trying to accumulate it. That is just how we function as human beings, no matter how much we hear it money still holds value in the short term.
The only way we can enjoy the greater things in life is by throwing away these small necessities and allowing ourselves to view the bigger picture. Once we have achieved financial freedom we can then enjoy simplistic things and view life without the scope of wealth but instead with a new perspective that is priceless. The goal is to reach a point where there can be a stack of cash on the beach but yet we are able to ignore that and enjoy the sunset.
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