If you asked me one year ago what my definition of financial independence was, I would have replied with something along the lines of “it’s when you have enough money where you don’t have to work ever again”. While I still think this definition is sufficient, there is another level of financial independence that I think deserves even more credit that its predecessor: Financial Independence 2.0.
The premise behind FI2.0 is that instead of building up an enormous mountain of cash, we hone the power of money creation. When you master the ability to earn and create money in your life you’ll be better off than cubicle slaves and even the average person that’s able to live off of their wealth.
You might have felt the itch to start a business, or simply to have a yard sale to make a little extra cash. Acting on these ideas is paramount to our future success — especially when we’re stuck in careers that bring us absolutely no overt happiness. Every single person in America has the power to start a business (especially sole-proprietorships). And it could take as little as 5 minutes to make your idea a reality.
Get inspired.
I kept nagging my wife about starting her own business. She’ll be out of employment fairly soon, and instead of filling an available position at an already established business, I urged her to start something of her own that revolved around her interests. Basically, I wanted her to choose the path of FI2.0.
She insisted that her brain didn’t function like that. She didn’t have the entrepreneurial bug, and didn’t think she’d be able to create her own company. While she struggled with the idea, I sat back and left her to her own devices, because I knew she was moments away from finding her niche.
Eventually it hit her like a ton of bricks. In an effort to reduce the clutter in our house, she decided to list every book on our bookshelf on an Amazon store that she created. Within the first week she had already made a $400 profit.
She thanked me for pushing her, because she realized that she loved the process of selling stuff (even though Amazon and the post office eats most of her profit). And instead of just letting her inventory dwindle and eventually run out, she made the decision to replenish her stock on a bi-weekly basis by shopping at Goodwill media clearance sales.
Inspired by herself, she decided to start a second business as well. And a third. She literally went from having a single source of income (her primary job) to having 4 sources of income within a few short months. All it took was a slight change in her mindset.
When you adapt to the mentality of income creation rather than paycheck chasing, you’ll feel a sense of relief. You’ll know that you’ll be able to make it through the hardest times. You’ll also know that YOU are in control of your future — it all depends on how hard you’re willing to work.
Avoid poisonous thinking.
Chances are that you’ll talk yourself out of starting your own business. You’ll come up with a list of reasons of why you shouldn’t start a business before you even try. Fear is the number one reason why people get cold feet. The fear of the unknown, the fear of losing money, the fear of uncertainty, and the fear of failure.
Think about all of the successful companies you’ve ever heard of. Think about all of the new tech companies that pop up every day with awesome apps, websites or ideas. Think about all of the shitty businesses you pass by on a daily basis. The owners of these businesses had a vision at one point. They were inspired. And for at least a moment, they didn’t let fear get the better of them.
A pro/con list will be your best friend, when you get the FI2.0 bug. If you have thoughts of owning a big retail store you might realize that it just isn’t worth it financially to make the move. You may, on the other hand, decide that you want to start a lawn mowing service. Since you already own a lawnmower and a weed whacker you already have the required equipment to perform your first job. Only you can make the determination if it’s worth it, so allow yourself to think through every situation possible.
Envision success and you will be successful. Would you start a business if you had an overwhelming feeling that you were going to fail? Probably not, but even if you did you’d have a reduced chance of success, simply because you have the wrong mindset.
I’m not telling you to go out and start a business right this second, but I want you to dig deep into your inner cortex. Figure out what makes you happy, and look for holes in the marketplace. Chances are that you’d love to be your own boss, and that you have a great idea that you can put into action with relatively low start-up costs.
You’re a success story waiting to happen! Don’t let other people get rich while you sit on the couch eating ice cream and watching Shark Tank.
If you haven’t read it already, check out Tim Ferriss’s classic “The 4-Hour Workweek“. In it he describes how he created — and later automated — a significant income stream. This is a must-read for anyone interested in being FI2.0.
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