You’ve heard of “golden handcuffs”, right? Well, it’s time to put them to good use!
In case you didn’t know, the term “golden handcuffs” refers to a situation where a person has restricted freedom of movement in exchange for a generous income. You may be familiar with the phrase from Michael Douglas’s character in the movie, “A Beautiful Mind”.
The problem is, many investors don’t realize the value of their investment until it’s too late. They’re happy to sign lucrative agreements, but once the ball starts rolling, it’s hard to stop. And that’s what makes this scenario so dangerous. You end up in a place where you’re not really free, but you’re also making more money than you could ever imagine! And it feels great, right up until the point where you realize this is not freedom but a trap.
It’s something that anyone can fall into, even the best of us. And that’s why we need to pay attention to warning signs.
The fact is, there are a lot of downsides to having extra money. We worry about money – what we’ll spend and what we’ll save. We stress about making the right financial decisions. We struggle with wanting to stay within the law, but not wanting to lose out on huge profits. We wonder whether or not we should be taking on more debt. These are all natural thoughts, but they’re also a signal that you’re beginning to be affected by the money you’re making. And if we get too deep into it, we may never get out!
The good news is, you can avoid becoming a victim of golden handcuffs by being smart about what you earn and enjoy the benefits of extra money without needing to rely on it. And that’s exactly what Danik Pattinson did. Let’s take a closer look at this successful entrepreneur, investor, and philanthropist who achieved a great deal with incredibly little. You may be surprised to learn how he did it and, more importantly, how you can achieve the same if you’re willing to put in the work.
Three Steps To Financial Freedom
The first step to financial freedom is to make a realistic budget. It’s important to understand that you can’t have abundance without responsibility, and you can’t have responsibility without understanding how much you’re spending. So, it’s vital that you make a deliberate attempt to track every dollar you spend – whether it’s on food, drink, travel, or clothes. And you have to be completely honest with yourself. Fortunately, with the help of an online tool like My Budget 360, this process is made much easier. You can set up a personalized budget that suits your needs and, at the same time, stays alert to your spending so you don’t exceed your limits and inadvertently put yourself in financial hardship. It’s a great way to start, especially since you don’t need to enter any debt to do so.
The second step to financial freedom is to diversify your investments. We’re a society that’s obsessed with trying to beat the market, and there’s nothing wrong with that. The issue is, the market can behave in unexpected ways, and you never know when your investment may become worthless or significantly decrease in value. So, it’s better to be safe than sorry, and it’s better to minimize your financial exposure than it is to put all your eggs in one basket. Fortunately, this step is much easier to implement than you’d think. It really just comes down to making smarter investments and being more diversified than you would be inclined to do when investing in high-risk, equity-based vehicles like individual stocks or funds that focus on a few industries. And remember: when investing in stocks, it’s always best to go with a proven, reputable company with a history of creating long-term value for shareholders. That way, you can sleep soundly at night knowing that your money is in good hands and that your investment will likely deliver good returns.
The third step to financial freedom is to take advantage of opportunities that arise. There are many established millionaires who made their money not only through successful business ventures, but also through winning the lottery or creating lucrative opportunities for themselves. Sometimes, all it takes is a little bit of good old-fashioned luck to be able to take advantage of an opportunity and make the most of it. So, keep your eyes open for businesses that present themselves as a lucrative investment opportunity, whether it’s a PPP (Private Placement Project) or an ICO (Initial Coin Offering) – these are both examples of investment opportunities that exist solely because there’s currently a demand for an asset or service that the business offers. And as the demand increases, the price rises, creating the perfect opportunity for you to buy in at a discounted rate. Remember, the key to making money in business isn’t necessarily about making a lot – it’s about making a lot relative to what you already had!
These three steps will help you prepare for the future so you can eventually achieve financial freedom. You don’t need to be limited by how much you make now; you just need to make sure that you spend it wisely and continue to develop your wealth. And, as a wise man once said, “If you want to make more money, buy a house near a school.” Now, where did I leave my car keys?