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Financial Freedom
Financial FreedomAlthough people often confuse the two, financial freedom is not the same as being rich. They are very different goals. One person could be completely financially free earning £20,000 per year. Another person could be trapped, even with millions of pounds.

We define financial freedom as not needing to worry about money.
Money should not be a dominating force in making decisions in your personal or professional life.

A good way to view financial freedom is another type of freedom most people in the Western world enjoy: freedom from hunger.
As human beings, we need to eat to survive. But the relative abundance of food in life has meant hunger is never a driving force of decisions. If food were scarce, getting enough to eat would probably occupy all of our thoughts.

Being financially free, is the same as being free from hunger. Money will always play a role in your life. But you are free when it no longer becomes the dominating influence on your goals. Financial Freedom is More Important than Wealth.

 

Inspiration
Inspiration
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Residual vs Linear income
Residual vs Linear incomeThe Difference Between Linear Income and Residual Income
More than 90% of people around the world are accustomed to a source of income known as Linear Income: trading time for money.
For that reason they are not and never will be financially independent.

Linear Income, also known as work income, means you receive a paycheck based on the amount of work you do. You need to put in certain number of hours every week. When you stop working, your income stops. Linear Income requires continued work.

Residual Income is different. It is the most powerful and profitable source of income. Residual Income is the income of the rich. It is a source of income that keeps coming in on a regular basis, from work you do once – meaning even when you are not working. Residual Income is not about “getting rich quick” schemes – the principle very much misunderstood by many people. It requires effort and determination, especially in the beginning… and some time for the magic to start working.

The Mathematics of Linear Income
There is nothing wrong with having a Linear Income. It is considered to be an honourable form of earning a living. Some people can earn good money. Hourly wages can run from a few dollars to hundreds of dollars an hour. However, Linear Income is limited to the number of hours worked and only provides an income when you work. In other words, when you stop work, it stops.

Recently, there has been a huge review on the way ‘fat-cat’ managers choose to award themselves increasingly larger salaries while slashing those of people lower down the ladder. So while Linear Income may be the manner in which most people earn their pay cheques, it is also the main reason so many of us will not be able to afford to retire until we are at least seventy.

According to the advice firm Liberty SIPP and The Independent on Sunday the average worker is facing a bleak old age surviving on a private or company pension equivalent to only one-seventh of the national minimum wage.

The survey, based on current rates of investment return and at today’s prices, shows that to buy an income equivalent to the national minimum wage – just £12,115 per year – Britons have to save up a pension pot of £220,776. However that is more than seven times the current average pension pot that Britons manage to scrimp together prior to retirement.

And what’s more, with record government borrowing and all-time low interest rates, the amount of retirement income a pension pot can buy is declining all the time. For example, a pension pot of £100,000 (more than three times the average) could have bought an income of around £7,000 a year in 2004 but will now provide less than £5,000. As a result, the amount of money needed to secure just the national minimum wage could increase further, particularly when increased longevity – with the average 25-year- old likely to live until at least 90 – is factored in.

“The other key question is when they can afford to retire. We anticipate that, within a few years, retirement at 70 will become the norm unless people plan ahead.”

Mr Fox’s prescription is that people simply have to start saving earlier, contribute more and or retire later. He estimates that a 40-year-old needs to be contributing a minimum 11 per cent of their salary to earn the minimum wage in retirement, and that is presuming a punchy average annual investment return of 5 per cent and surrendering the right to take up a 25 per cent lump sum, something that very few pension savers do now.

However, looking to the pensions landscape, the drift is still towards less substantial workplace pension provision. Auto enrolment, which started to be rolled out last October, will see millions more people hold a workplace pension scheme, but the contribution levels are so low as to barely touch the issue.

The Best Solution for Most People
More and more people are turning to something called time leveraging to create long term Residual Income. With time leveraging, there is no hourly limit placed on your worth and money continues to come to you whether you work or not. The difference between Linear Income and Residual Income is that with Residual Income, your productive time is leveraged. That is, your time spent at work becomes increasingly worth more and more. Unlike fixed-salary employment, leveraged income has no upper limit.

Of the over 6,000,000 millionaires in the USA today, 20% who have reached affluence in the past two years have done so by leveraging their time… and they did it using something called referral marketing. It is no wonder that the likes of Anthony Robbins, Donald Trump and Robert Kiyosaki are such passionate advocates of referral marketing and developing residual income streams. As the latter says: “The richest people in the world build networks, everyone else looks for work.”

Most common sources of Residual Income:
Inventors, authors, songwriters, and visual artists get royalties from their creations.

- Real estate is a proven way to earn good income but it requires special expertise and a great deal of money nowadays. You need to be a real estate owner to earn Residual Income through rent. It requires continuous work to generate income.

- Investing in stocks, bonds, venture capital, and mutual funds can be profitable, but again, they require specific knowledge and substantial capital to create enough income to live on.

- Residual Income business opportunities.
Your earning potential is unlimited. It is the best retirement insurance – and the only method for most people.

Referral, or network, marketing is not a business but a way of doing business. Instead of paying astronomical sums to advertising agencies to market a product or service, an ever-increasing number of companies prefer to pay consumers to spread the word.

An example of a company that operates in this way is ACN. Operating since 1993, ACN is the largest direct seller in telecoms and essential services in the world. ACN also has some of the most influential endorsers around the globe including Donald Trump and Richard Branson.

Referring is nothing more than doing what already comes naturally… it’s people sharing with people. When you tell a friend about a great movie you have watched you are engaging in a form of referral marketing, even though you didn’t know about it and didn’t get paid for it. Referral marketing is about sharing information and making each other’s lives better.

Income is generated when referred customers purchase products or services. Income grows exponentially when the people we refer, refer others, who refer others, etc, etc. In other words, as the number of referred people increases (either by us or by those we referred), so does our income.

What makes this all the more exciting is the snowball effect. That’s the inherent power of time leveraging built into referral marketing. Success does not depend on personally referring large numbers of people, but rather in referring and teaching referral marketing principles to only a small number of people who then go on to do the work for you… an easy and enjoyable task for almost anyone.

To better understand how time leveraging works in referral marketing, consider this: what would you rather have one million Pounds or a penny that doubles every day for a month? If you chose the penny, you would have £5,368,709.12 in 30 days! Herein lies the power of leveraging time when coupled with referral marketing. This is why referral marketing, when coupled with a dynamic company, is rapidly becoming the business of choice for so many people around the world.

 

WHATS ON MEETUP

WHATS ON MEETUPMeet others who are serious about achieving financial freedom and find a group which offers opportunities that can be done with little or no resources. Our specially assembled meet ups allow you to receive encouragement and understanding on what other people are doing to become financially independent.

Why Come to a ‘Take Action’ Evening?
- Accountability and the power alliance of a group
- To shorten the journey to financial independence.

Our purpose is to;
- Work together in the true sense of a Master Mind Alliance, to create massive cash flow and strong capital gain pay-outs
- To greatly reduce the amount of time it takes to achieve financial independence.
- Among others, learn from Robert Kiyosaki’s fundamental financial knowledge, Napoleon Hill’s power of the Master Mind, Blair Singer sales and marketing mastery and Stephen Coveys’s sixth principle in “The 7 habits of highly effective people” calling us to “Synergize”

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Thames Innovation Centre
2 Veridion Park, Erith
Kent, DA18 4AL
Telephone; +442083201044
Email: amethystfamilyfoundation@gmail.com

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