Stages to financial freedom

Wow what an amazing year 2012 was, My business grew by just over 70% and I'm getting closer to my goal of being financially free. Financial freedom is a varied term though in that it means different things to different people, for me it means never having to work again if I didn't want to! So that every month all my bills and living costs would be covered by multiple streams of income and residual income at that.

I have several stepping stone goals to reach this one big goal

Firstly I need about £950 (before tax) per month, now that would cover all my contribution to the household ie utilities, food, rent etc and at this point (and I'm already on the way to this goal with my Utility Warehouse business)  I could be financially free, if I never went out again or did anything else! That would be pretty boring though, so that leads me onto stage 2.

Stage 2 I need around about £1800 (before tax) a month coming in on a residual income basis, to cover other bills like fuel, mobile phone, going out for a meal once per month, car insurance and so on, Then I'd be pretty happy with that, I'd pretty much never have to worry about bills again. Of course I'd still have a linear income at this point by that I mean I'd have an income where I get paid for the hours I work.

Stage 3 is around £3250 (before tax) I think this is a nice figure for me to be able to have and do what I want when I want, also if I wanted I could drop the linear income sources, although I probably won't as I'll take the income from that and invest in to a residual income such as shares.

Final stage of financial freedom would be around £6500+ (before tax), Now I say plus, because why limit yourself, but on this sort of income for me it means not only will I never have to work again (if I didn't want to) but then neither would my wife (well you need someone to share the time with). This would mean being able to have what we want when we want it, going on holiday at the drop of a hat, go to any restaurant we want and not have to look at the right hand side (the cost) you get the picture.

So why do I have these four figures? 

The £6500+ figure is nice and I will get that within the next ten years but it's much better to have those smaller goals on the way to tick off, otherwise it's be a bit like having a 20 ft ladder with only 2 rungs! Of course I have other goals in between and there aren't only four rungs on my ladder, I've just written this to give you an idea, so what are your goals to your greater goals, get it written down and have it clear in your head, it is very motivational.

If you want to share your stepping stones, feel free, I'd love to know.

To your success

Paul

Multi Level Marketing Business

In 2008 I joined a business industry called Multi Level Marketing (MLM). MLM comes under different names such as Network Marketing, Relationship Marketing and direct Selling. Companies use MLM as a route to market rather than advertising on TV, radio and papers and magazines which can be expensive. Entrepreneurs who become involved in MLM become what is know as distributors to sell the products and services of the company they are then compensated for doing so. They also find and recruit other people who want to do the same and build a team they are then compensated for doing that too. 
By doing this the costs of the company are reduced as the cost of acquiring a customer is known because the distributors do not get paid until a sale has been made as opposed to advertising where the cost of a customer is not known until the sale has been made, therefore the spend that would normally be spent on marketing is shared between the distributors of the company
By building a team a distributor can build a residual income so whether they work or not they still get paid.
Unfortunately some people who join an MLM business believe it to be a get rich quick scheme and think that they will not have to put in effort to build their business, they then blame the business when they fail instead of their own laziness. It does take time effort and commitment to build an MLM business as it does any business and the rewards for those that do are great, more millionaires have been made from the MLM industry than any other.
MLM is a great way to build your wealth but to be truly wealthy do you need to have millions in the bank or would an income of £2 or £3,000 coming into your bank account every month just like when a writer gets paid a royalty for writing a book or singer for writing a song be okay?


Paul




PS. See more about my MLM business here