Economic freedom is never an accident and comes from understanding and employing certain principles. It is possible to love what you do, add tremendous value to the lives of others and have the peace of mind that comes with financial freedom. What will you do when you have the time and money to create the life you have imagined? The following insights will help you on this journey.
There are three important principles that will guide you on your path to financial freedom. They are:
- “La Via Negativa” aka Voluntary Simplicity
- Economic Order
- Multiple Sources of Income (Leverage)
Eliminate the Unnecessary
“La Via Negativa” is a sophisticated, yet straightforward concept. Translated, it means eliminate the unnecessary. This concept, when applied to finances, includes “voluntary simplicity.” In other words, eliminate all unnecessary expenses. Imagine how much better your financial life could be if you eliminated the unnecessary. Individuals approach their finances in one of three ways. There are those who:
- spend less than they make
- spend what they earn
- spend more than they make
If you spend less than you make, money will never be an issue. Spending what you earn makes you financially vulnerable. If you are in group three, the amount of money you make is irrelevant. If you habitually spend more than you make, you will always be in debt.
