If we look around, many Singaporeans have a common goal. What is the goal of an ordinary person? They want to make enough money to be self-sufficient for their lifetime, they want to earn enough to provide for their kids and for their future. Imagine a life where you are earning passive income, so much so that there comes a point from where you do not need to earn at all. You’re free to work depending on your mood and not as compulsion. You have no boss over you and you are to decide your future without worrying about any budget line. Sounds like a dream but this is called “financial freedom” which is actually a possibility.
To achieve financial freedom, you need to get rid of 3 common beliefs which inhibits your planning capacity. These beliefs brainwash and force you to conform to the norm such as working until you are 65.
The first belief is “I’ve to work my entire life because my parents did the same”. You might not verbally say it but this belief is entrenched deeply in a person. You got to have a contrary belief that you’re going to change the history of your family and will do something different and bigger to take you to the next level.
The second belief is “I cannot manage my finances”. Oh, do you really need somebody else to help you manage your money? Do you actually think that somebody can plan better for your money than yourself? For now, just stop saying it. Start believing that you can very well manage your money. For a start you can come up with a simple budget and record your expenses on your mobile phone using many free apps. At the end of each month you should review your finances and come up with a new budget. You can also take enrichment courses to learn how to invest your money to make money work for you instead.
The last belief is the biggest hurdle in the path to one’s financial freedom. It is the feeling of “I’m not good enough!” Again you need to acknowledge the fact that you are blessed with many skills in life. Remember a skill that you excelled at your school or workplace? When we are young, that is the time when we explore our capabilities but due to external factors such as parental pressure, sometimes we do not get to fully develop this skill. But it’s never too late. You may want to consider turning your passion into a business. I’m not asking you to change your designation but sacrificing your capabilities for something less productive is the biggest of mistakes which you wouldn’t want to commit.