As an entrepreneur I don’t know the place that the fight for freedom has in your priority list.
But I know that if not for freedom, you will have little reason to do what you do and fight as much as you fight.
Yesterday I was talking with my neighbor all through the afternoon and then through the night. He told me he had changed his life and now he knew it was not just about work. For him the change was gradual, but what gave him the click was a work trip at East Timor. There he was connected with a unlikely reality of survival, rediscovered the essentiality of life on two very strong fronts: Life is to be enjoyed in activities with sense. He found social contribution as a form of personal fulfillment. To be able to live the way that makes sense to him, is his journey of freedom.
He will have his freedom, when he frames with harmony all facets of his extraordinary personality: achiever, leader of people, efficient, successful, facilitator of resources to others, generous, impulse.
Evidently I enjoyed our conversation because my journey is similar in some respects, and I have found this: The Dalai Lama says that “man use health to make money and then spend money to recover health “, the same happens with time: someone who doesn’t work has much free time, but will not have money. Someone who works long hours, earns a lot of money, but at the expense of health and time.
If you add to this the triangle formed by the Health , Time and Money , the third dimension of Personal Achievement shalt be a pyramid whose vertex includes emotional and spiritual life .
There seems to be communicating vessels between health, time, money and personal fulfillment: you increase one and the other one decreases, in a strange economy : To get money you have to invest your time and health. On the other hand you gain personal achievement. To have health, you spend money and time. To have time, you lose money, but probably win health. To fullfil yourself personally, you need time, health and money.
These are the four key areas of your life. You will have personal freedom when you integrate them smoothly. So you should invest all your resources on them. Unfortunately it seems that we play a game whose rules are fixed from the beggining: You can never have all four things in abundance because, apparently, to have one you have to sacrifice another.
I don’t like that. But maybe there is a way to have them all simultaneously: health, time, money, personal fulfillment.
The basis of this fixed game appears to be the connection between time and money. The more you work the more money you have, but with more money comes less time. These are the rules of the old economy. However we are now at the dawn of a new economy which you, new entrepreneur, are a part of. Many of the old rules no longer make sense.
Is there no way to break that logic, to be able to take a leap and gain your freedom?
Maybe there is. If , instead of a ” Salary “, which is depenant to your working hours, you get money through a “profit ” you can monetize your time a lot because you can win far more with the same job.
Therefore, a profit gives you more freedom than a salary. Excellent starting point.
As a salary is indexed to time (you earn x per month, working x hours per day), a profit is indexed to your activity as a facilitator. If you are an independent seller, you earn whenever you sell something. The closing of the sale is the result of your customer service, putting at his reach something that he wants.
What freedom can your activity of facilitator bring you? More than a salary would allow because at least the time is not so important in your equation. But you’re still stuck for your activity. You sill aren’t the master of your life because, if you sell something you earn money, but if you want to spend your time doing other things and you don’t sell, you stop making money.
How to overcome this difficulty? In theory: hiring people. You hire people who do what you do, earning themselves a part of what you sell and give yourself another part. If you have a good number of these sellers, you can have the freedom of time and money to enjoy as you see fit, and you can contribute in social actions you think are good.
Does this formula to conquer your freedom sound good? Having a steady stream of income from the activity of other people working for you? Me too. It only has only one setback: it does not work.
Don’t get me wrong. With respect to earning more money by multiplying your action through employees, works. But not with regard to bringing you more freedom. It’s that, this model has a manufacturing defect: none of the people you hired is equal to you and so you need to be present. Always.
And you, having to be present, with your leadership, the more your project grows, the more you’re tied down. More responsibilities, more problems to solve. One day you wake up and realize that was not why you built the company, your project was freedom and not new slavery. You can even have a gold cage, but it is still a cage.
So, is there no solution? Can we never be free in time, health, money and personal fulfillment?
I think so. That there is a way to achieve freedom. And the interesting thing is that it’s nothing new.
Imagine you are a carpenter. You make a chair (and earn a salary for the time spent). You sell the chair (and earn a profit on the sale). If you want to continue to make money, you have to re-invest your time and your activity making and selling another chair. Correct?
This is the linear way of making money, as I explained back there. Now imagine the following :
You are a carpenter. You make a chair and sell the chair. However, the person who bought it is committed to putting 5 cents a box, nailed to the chair, each time he wants to sit on it. You are at home, resting, and suddenly … ding , 5 cents in the box.
Now imagine that you work like crazy and make a thousand chairs. And 5 people sit in each chair per day. gives 25 cents per day per chair. € 250 per day , € 7500 per month.
The most interesting is that you earn money, with eating, sleeping, making more chairs, reading, traveling. No matter what you’re doing, your income is permanent residual from the work you did one time.
Sounds too good to be true? Would this not be an interesting way to achieve the coveted freedom of time and money?
It is. But unfortunately for the carpenters, carpentry business does not work like that. But there are businesses that work just like this. I’ll give you a practical example of residual income:
– You have money and invest some. The income that comes from investments is residual income. You put your energy (in this case your money) in the process and, as a result, you receive an income from that process. You can invest in the stock market, real estate, etc.
– You have some intellectual talent: you know how to write and you write a book, or you are a musician and you record a album. You can even take two years to finish your work, but when published, whenever a copy is sold you earn a percentage. Again, you placed your energy (in this case your talent and productive work) and, as a result of the process, you receive a residual income, in this case called ” copyright .”
It is very clear that none of these two types of income are indexed to the time or the activity, it does not depend neither one nor the other. Imagine the freedom you would have if you had a huge passive income (another name for the residuals) that would allow you lead the life you ambition! Have time and money so you can dedicate yourself to anything you wish , and to help those who want to enjoy the things you have right to!
Yeah, but you probably don’t have so much money invested that you can bring enough persistent income. On the other hand you may not be a musician or writer. And even if you were, you’d have to be exceptionally good to be able to earn your freedom this way.
So, this article served you for anything? Are there no real and viable solutions to achieve your freedom?
Don’t get ahead of yourself. Of course there is. Someone invented, more than 60 years ago, a way of democratizing the passive income. This form is called a “recommendation”.
The model of paid recommendation is very interesting because everyone can recommend anything. Plus, everyone recommends things every day. The stroke of genius was someone having the idea of paying someone a commission for a sale made from a recommendation of that person.
Imagine you read a book and you recommend it to 10 of your friends. If they buy 2 or 3, the bookstore doesn’t even thank you, right? Of course not. But if you do it online through Amazon, for example, Amazon pays you a percentage for each sale made by your recommendation. And whenever that person goes back there to buy a book, Amazon continues to pay you.
Like Amazon, thousands of companies and products are sold on the Internet this way: by returning the recommendation. These systems are called “affiliate systems” and are the most popular ways to create passive income.
There is another way, even more powerful for creating residual income: network marketing. In this model there is a company that distributes products on the basis of recommendation and even has career programs for recommenders. You can create a true organization of people, who recommend to people who recommend to others, and you receive a commission for all or part of all these recommendations.
Easily you understand that no matter how very low the percentage that can be (and usually is not so low), the possibility of return is astronomical. Imagine that each person recommends another every month. After one year you have 4096 recommenders and you earn a percentage of all products purchased by all these people.
It’s amazing what these new models of wealth creation do. I say “new”, not because they have been invented recently, but because they are now creating a critical mass of beneficiaries and therefore are in early momentum.
The residual income, or royalties, or passive income, is the best way to create wealth in time and money, and thus, have resources to develop youself in terms of health and personal fulfillment.
To me this is freedom: to have money, time, health and personal fulfillment in abundance so you can dedicate yourself to helping those want, to do what you want when you want with whoever you want. To have things that you need and give to those who you like everything they’re missing.
Imagine not depending on the boss, nor the economy or the IMF, or the bank!
In times of crisis everyone is clamoring for freedom, but few know how to achieve it. You now have some clues.