Though we think of achieving financial freedom as a difficult process that requires you to give up the things you love, there’s an easier way! As long as you understand what the process of becoming debt-free entails, it’s entirely possible for you to enjoy financial freedom and build generational wealth at the same time.
To learn how to make this happen, we sat down with our good friend and fellow entrepreneur Janine Mix. Her story has helped us grow, and it’s sure to help you too!
Though Janine is a successful seven-figure entrepreneur now, she wasn’t always so well-off. She started out with the typical plan of going to a good school, getting a good job, and living a comfortable middle-class lifestyle, but before she knew it, she found herself saddled with $125,000 in student loan debt. She spent every waking hour worrying about her finances, how she’d make the next loan payment, how she’d pay her rent, and how she’d ever become financially free.
Eventually, things reached a breaking point, and she decided she couldn’t keep living in constant debt. That day, she decided to press the reset button on her life, and work towards true, sustained wealth. Here are a few of her most important steps in the process.
Understand Your Money Story
Everyone has their own unique experiences with money which affect how they perceive and use their finances. Janine states that the first step to building for the future is understanding your own experience. For example, if you came from a financially insecure family, you may end up avoiding all debts and extra expenses, even when they could benefit you.
Think back on your past experiences with money and consider how they’ve shaped you. Once you understand how your money story has affected your perspective on money, you can understand how it’s holding you back. From there, you can work to overcome it, and you’ve taken one of the most important steps toward generational wealth.
When we think about debt, it’s almost never perceived as a good thing. We think of thousands of dollars in credit card debt, the inability to make a retirement plan, and living paycheck to paycheck. However, nothing could be further from the truth. Like money, debt isn’t inherently good or bad; it’s all in how you use it.
In Janine’s case, she made her start in real estate with a massive leap of faith. She took out a loan to purchase a property and then used that property to generate revenue. That revenue would go on to not only pay off her debt but provide her with passive income for years to come. That debt wasn’t bad, it was an opportunity for growth. A risk-taking mindset is the key to successful entrepreneurship, and you have to be willing to take the risk of going into debt if you want to rise beyond it.
There’s a difference between having resources and being resourceful. Though it’s easy to become complacent in having plenty of head knowledge and money, those resources won’t do anything by themselves. To become financially successful, you need to apply your knowledge and invest your money, allowing the effort you put into obtaining them to be returned tenfold. Everything you have is a resource, but whether or not your resources are ever used is entirely up to you.
Define Financial Freedom
Though the definition of financial freedom may seem obvious to you, the answer you give isn’t necessarily the same as others. For some, financial freedom means multimillion-dollar mansions, the latest designer fashion, and a fast car, but for others, it means the freedom to be generous, to donate to causes they support, and to improve the world around them. There’s nothing inherently wrong with either perspective, but having a clear understanding of what financial freedom is to you allows you to pursue your goals.
Using Money for Good
Money can be used to improve your life, but it can also be used to improve the lives of others, and it’s up to you to decide how you use it. However, there’s almost this fear of being wealthy that some people carry, an image that stems from society’s image of entrepreneurs.
Think about it. When was the last time you saw a movie that portrayed an entrepreneur in a positive light? Entrepreneurs are all too often seen as greedy wealth-hoarders, but as we mentioned earlier, money isn’t good or evil, it’s simply a reflection of its owners.
If you’re a kind, generous person, that’ll be reflected in how you use your money. Rather than all going back to you, your money will be a force for good in your community, helping countless people and groups in need while giving you financial security and spiritual fulfillment. Essentially, the key to achieving financial freedom is to let go of your unconscious reservations against it. You have the means to achieve generational wealth, and all that’s left to do is use them.
Are you ready to start building for your future? Start your Rainmaker Journey to kickstart your first week of growth!