| Ask people what they want most out of life, and | | | | businesses by selling their old junk on Ebay, only to |
| more often than not they will tell you that they want | | | | find that it was very lucrative for them. Then they |
| to be rich, wealthy or financially free. Some of them | | | | would pick up old items from yard sales, the |
| will tell you that they want to live in a large house or | | | | Salvation Army thrift stores and Goodwill, and resell |
| mansion with a huge backyard swimming pool, | | | | those items for profit. If you are internet savvy, you |
| gold-plated sinks, a butler and/or a maid, etc., but | | | | can sell other people's products through affiliate |
| usually these are just fantasies they have about | | | | programs. Affiliate programs allow you to sell |
| what wealth is. Certainly there are some very | | | | products from other people's websites and make a |
| wealthy people who live this type of luxurious | | | | commission on each sale if a person buys an item |
| lifestyle, but as Thomas J. Stanley documented in his | | | | through your website or blog. Some places to start |
| now famous book, The Millionaire Next Door, most | | | | looking for affiliate programs are Clickbank, Linkshare, |
| people who have obtained great wealth and money | | | | and Commission Junction. |
| tend to live more modestly than the media would | | | | Make money through real estate |
| have us believe. In fact, may wealthy people and | | | | Real estate is one of the most common forms of |
| millionaires tend to drive dependable and luxurious but | | | | wealth building for the average person. In the past |
| not necessarily flashy cars, live in well-designed but | | | | few years, real estate has become a wildly popular |
| not overly huge houses, and they don't buy the | | | | way to make a lot of money, yet it appears that we |
| most expensive clothes from the hottest designers | | | | may be on the verge of a housing bubble which is |
| du jour every weekend. In fact, if you ask these | | | | about to burst. Most of this housing bubble can be |
| people why they wanted to become wealthy in the | | | | attributed to the process of flipping properties, |
| first place, nearly all of them will tell you that they | | | | where some person buys a home or condo with a |
| wanted to become wealthy to have more freedom | | | | huge mortgage and hopes to resell the property at a |
| to choose the things they want to do in life. | | | | later date through price appreciation. Much of this |
| What is your goal for financial freedom? Do you | | | | was encouraged through late night television |
| want to live a lavish luxurious lifestyle as portrayed | | | | informercials. While these strategies do work and can |
| on Entertainment Tonight, Access Hollywood, E! or | | | | make you a lot of money in a short period of time, |
| VH1? Do you want to have a lot of money to travel | | | | they have their drawbacks. First of all, it's not |
| the world? Or do you just want enough money so | | | | necessarily a steady stream of passive income, and |
| that if you suddenly quit your job, you could sustain | | | | second, you can find yourself without any buyers if |
| your current lifestyle? All of these goals are possible, | | | | the market peaks too soon. |
| yet some of these will take more wealth building | | | | Of course, the old-fashioned way of making money |
| than others. | | | | through real estate is buying rental properties. You |
| Financial freedom is the ability to have enough wealth | | | | buy a two or three flat or small apartment complex |
| so that you can quit your job and never be forced | | | | building and rent out the remaining space to tenants. |
| to work again to sustain your lifestyle. Now this will | | | | If you structure your mortgage and rents well, you |
| vary for many people. If your lifestyle consists of | | | | will cover the cost of the monthly mortgage, taxes |
| having a big house with two luxury cars, being able | | | | and insurance through your tenants' rent payments |
| to take multiple vacations every year, and buying lots | | | | plus have extra money left over to spend. It's not |
| of expensive clothes, jewelery, and gadgets, then | | | | uncommon in some areas to make a sizable rental |
| your income is probably very high or you have | | | | income on a modestly-priced apartment building, and |
| leveraged yourself to the hilt in debt. However, if | | | | some people simply make a living just by providing |
| your lifestyle is more modest, and you live in a condo | | | | housing to others. |
| or small house, and you keep your expenses low, | | | | Making a passive income through stocks and bonds |
| then you probably can get by on even a mid | | | | Now this is an easier way to make passive income |
| five-figure income. But how do you determine what | | | | than real estate, but it takes more money to do this, |
| you need to get financial freedom? | | | | plus you have to know your stocks and bonds well |
| R. Buckminster Fuller once commented that your | | | | enough to stick through your investment. Passive |
| wealth is determined by the amount of money you | | | | income in this case is generated through dividends. In |
| had saved divided by the amount of time you could | | | | other words, when you buy shares of stock, |
| sustain your current lifestyle if you had suddenly lost | | | | treasury bills or bonds, the company issuing the |
| or quit your job. For example, if you had saved | | | | shares of stock (or the U.S. Treasury Department, in |
| $10,000 and could live on that for five months, then | | | | the case of bonds) will pay you a cash dividend for |
| you were five months wealthy. If you had saved | | | | investing with them. Now usually, this only consists of |
| $40,000 and could live on $2,000 a month, then you | | | | a few cents per share or a small interest rate, but if |
| were 20 months wealthy. However, what if you | | | | you buy enough shares or bonds, this can generate a |
| could use those savings to build an income that you | | | | huge income for you. In some cases, it will pay you a |
| make you infinitely wealthy? This can be done by | | | | huge interest percentage, or yield as it is often called, |
| having passive income. Passive income is money that | | | | and this yield will often pay much more than bank |
| you receive that you do not have to work for | | | | deposits. Plus you still own the underlying shares of |
| through employment. In other words, you make | | | | stock which you can sell for appreciation, or in the |
| money even when you sleep. Most often, passive | | | | case of bonds, hold until maturity. For instance, you |
| income is made through your own business, real | | | | buy $400,000 worth of stocks which pay an annual |
| estate, or investments such as stocks or bonds. | | | | dividend equivalent to 12 percent. You would receive |
| Creating your own business | | | | $48,000 in dividend payments from this stock. Lets |
| Many people have become wealthy by creating their | | | | say that you hold on to this stock for five years, |
| own business. Usually they started out doing some | | | | and its value appreciates to $650,000, at which point |
| hobby that they loved like baking or arts and crafts | | | | you decide to sell your shares. Not only would you |
| and people would pay money for their products or | | | | have received $48,000 for each of the last five |
| services. You can do this as well. The easiest way to | | | | years, but you would have realized a capital gain of |
| start would be by selling your old unwanted products | | | | $250,000 from selling your shares (before |
| on Ebay. Many people started their home-based | | | | commissions and taxes). |