I am a subscriber to John Assaraf’s YouTube channel. He creates a ton of free content on the topics of money, achieving goals, mindset, retraining the brain, and more.
When it comes to learning about financial freedom, it is wise to take advice from someone who has achieved it themselves. That being said, I’ve watched some of John’s videos and have picked up some practical tips to become financially free.
If you’re like me and your long-term goal is to be financially free, John’s tips will be of value to you.
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Table of Contents
Financial Freedom Isn’t About The Money
The first thing that John points out is that financial freedom is not about the money at all. Financial freedom is about the things that it offers. Think about what financial freedom means to you. For me, it does not mean having money to buy expensive things.
Being financially free means:
No longer having the worry and stress of living paycheck-to-paycheck. Never having to feel a lack of money and worrying about how the rent or mortgage will be paid. Emotional freedom means no more stress about paying for your basic needs. It means having peace of mind.
I have never liked being under someone’s thumb. That means an employer or having clients. I’ve done both. I’ve worked for many different companies and I did freelance work for clients of my own.
Both took up my time. I used to sit in a cubicle for eight hours a day and look outside my window daydreaming about how I could spend my time. Most of the time, I just wished to be able to walk outside and enjoy a beautiful day.
Freelance work was a little better but I still had to answer to my clients. My time was theirs and I longed to spend time how I wanted with who I wanted.
Financial freedom offers time freedom which means you can spend your time how and with who you want. What would it mean to you to spend your time with those you love most? Or go where you want anytime you want without requesting PTO (paid time off)?
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The #1 Way to Financial Freedom
So before we jump into the tips below, it is important to know what it takes to begin your journey to being financially free. According to John Assaraf, the number one way to financial freedom is having a commitment to financial freedom.
Why is this commitment so important to have? For one thing, when you are committed to your goal, you will overcome any obstacle that comes your way.
Having such a commitment also means that you will develop the discipline needed to stick with it. Obtaining financial freedom isn’t easy but with a commitment and discipline, it is achievable.
Four Tips to Financial Freedom
The following tips are essential to achieving your financial goals. After reading them, you’ll understand even more why it requires a commitment.
Following these tips is not easy! It definitely requires discipline and consistent effort. Gaining financial freedom is work and if you are willing, you can reach your goals.
Tip 1: Earn More Money
Seems logical, right? But assess your current situation. Are you working a 9-to-5 job? Are you a business owner? No matter how you are bringing in income, you can work towards bringing in more.
John’s first tip in the area of earning more money is getting clear on your income producing activities. How many hours do you spend earning money? What I liked about this tip is that he points out:
There is no such thing as time management. You can only manage what you do in that time.John Assaraf
Therefore, make the most use of your time by creating new ways to earn more income. This may mean creating a new business (whether online or offline or both).
Then you can spend your time on the highest impact producing activities versus the trivial many things to do.
I believe this is a great tip. Where do you place a majority of your focus when it comes to producing income? You may realize that you don’t focus much time at all or that you focus too much on activities that aren’t producing a majority of your income.
As for myself, I run an online business so I am constantly figuring out ways to generate new streams of income. I place my focus on the activities that will help me reach my financial goals.
It is not a set it and forget it type of thing. I find myself assessing my productivity on a regular basis. It is important for me to ensure that I spend my time moving my business forward.
Tip 2: Money Management
How well do you manage your money? John states that the biggest mistake is not having a money management plan. It is crucial to understand how much you’re bringing in, what your expenses are, and how much you have left over at the end of the month.
Are you living within your budget? Many people live beyond their means. I remember creating a spreadsheet of all of my expenses each month.
I realized how much I was spending on things that were not a necessity. Creating that spreadsheet enabled me to cut out expenses that were not important. It saved me quite a bit each month.
Nowadays, it is so much easier to track your income and expenses. There are personal finance websites and apps that you can use to track every cent.
Mint.com is one such website. You can track all of your accounts and credit cards. They even have a mobile app so you have quick access to your finances anytime you want.
If you are in severe debt, it is all too easy to bury your head in the sand and not take account of your financial situation. I understand, I’ve been there.
However, managing your money puts you in control. Even if you are in debt, it is better to know what your expenses are so that you can start prioritizing.
Tip 3: Build a Pile, Then Build a Stream
This tip is about saving money and creating multiple streams of income. Building a pile refers to saving money. The money that you save is your pile. Building a stream refers to creating a new stream of income through investing.
Protecting your financial freedom means diversifying and creating multiple streams of income. You can invest in stocks, IRAs, 401Ks, real estate, or anything that generates passive income.
Tip 4: Get Rid of Bad Debt
There is good debt and bad debt. Bad debt is consumer debt, meaning credit card debt. Having credit card debt is not uncommon. If you cannot pay your credit card debit off in full each month, then you are paying interest on the debt that you owe.
I am no personal finance guru by any means. However, I do know that paying the minimum amount on your credit card balances each month will keep you in debt and paying interest for far too long.
John recommend creating a debt reduction strategy. Having bad debt makes it difficult to earn more money. There many resources to learn from in order to create a debt reduction strategy.
The most common method is to pay down one credit card at a time. Put more towards the monthly payment on one card until it is paid off.
Some people take on two jobs or another side gig to make extra money to pay down debt. You have to decide how you want to tackle paying down your debt.
Closing Thoughts On Becoming Financially Free
One thing that I like about John Assaraf’s advice is that he doesn’t sugarcoat anything. Gaining financial freedom takes time and consistent effort.
I’m making a point to do something every day that pushes me closer to my goal of becoming financially free.
If you are ready to level up your income, consider joining The 5 Day Business Challenge. John will show you how to utilize the latest research in neuroscience to unchain your brain, shatter your financial glass ceiling, eliminate the conscious and subconscious block standing in your way, and accelerate your income potential.