Three Ways To Achieve Financial Freedom

When someone asks me for help getting their financial house in order, I tell them that it is a matter of learning to control their money. I only know of four ways to do it. I strongly advise against one of them since it involves the use of a mask and a gun. The other three options are totally legal, incredibly simple, but frequently overlooked:

1) Spend Less.

2) Earn More.

3) Invest Wisely.

I know, it’s so simple. You didn’t need to read this to learn something so basic—right? I’ll grant you, conceptually speaking, this is no-brainer stuff. But in my experience, not one person in twenty is willing to follow these simple steps. Have you ever wondered why doctors smoke cigarettes and insurance agents don’t buy coverage? It’s not because they believe smoking is safe or that living without insurance is wise. It’s because they don’t have the intestinal fortitude to do what they know is right!

I like this simple three-step approach because, for me, it answers all the questions.

Spending speaks to what we’re doing with what we already have. Earning involves the actions we can take to improve our standard of living. And, investing focuses on future planning. Taken together, these three steps will determine how well we control our money.

There’s no rocket science involved here. It’s all pretty simple stuff. It involves about 1 part information, and about 9 parts dedication. The hard truth: Until you make a personal commitment to the three steps above—financially speaking, your life isn’t going to improve.