How to Create True Financial Freedom

Step-by-Step Guide

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   Step 1: Diversify your income.

   If you have several sources of income, you won't suffer as much financially when you lose one of them.
   
   As long as you have some income, you have more time to come to replace what is lost without worrying about how to pay your bills.
   
   Some possible ways to diversify are:
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   Step 2: Start a part-time business that you can do on nights and weekends.

   You might consider turning a hobby into a business. , You can also sell e-books or other information products on your blog or website. , If you have a master's degree you can get an adjunct professor position at a local college.
   
   Or you can teach online classes or in the community. , Sell your old stuff, books, toys, technology, anything that you basically do not use within a year.
   
   Use Craigslist to sell furniture and/or to buy things discounted.
   
   Learn to look for bargains and learn to negotiate too. , Unless you believe the government knows how to best spend your money, keep more of it for yourself legally.
   
   Learn which deductions your qualify for and make sure to research others you can qualify for legally.
   
   For example, open a Roth IRA if you meet the income contribution limits and participate in your employer tax deductible 401k plan.
   
   Learn the benefits of doing a blending of both types of accounts tax deferred and taxable. , When you get a raise automatically deposit/invest it in an index fund like Vanguard's S&P 500 (VTSAX).
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   Step 3: Create a passive income stream by setting up blogs or websites that offer useful information and carry ads that pay you a small commission for every visitor who clicks on the ad.

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   Step 4: Teach.

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   Step 5: Create multiple steams of income.

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   Step 6: Reduce your taxable income.

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   Step 7: Save more than 40 percent of your income and consistently raise it each year.

Detailed Guide

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