Freedom First
eBook - ePub

Freedom First

Escape the Income Trap, Unlock Your Potential and be Financially Free, Now

  1. English
  2. ePUB (mobile friendly)
  3. Available on iOS & Android
eBook - ePub

Freedom First

Escape the Income Trap, Unlock Your Potential and be Financially Free, Now

About this book

True freedom is within your grasp with this powerful wealth creation strategy.

Freedom First challenges you to rethink your ideas about how to become financially free. Drawing on historical financial insights as old as Confucius, as well as lessons gleaned from modern psychology and economics, this book explores a counterintuitive approach to wealth creation: if you want to become financially free, you need to become free first.

Author Matthew Klan walked away from his professional career and the promise of financial security in the pursuit of freedom. Now a self-made millionaire, Klan reveals his two-part wealth-building principle, and shares stories of others who have harnessed the power of getting free first. This book will enable you to:

  • Learn the counterintuitive financial insights of the rich
  • Understand the traps of not being free: Dependence trap, Debt trap, Income trap
  • Learn how to free yourself from what is holding you back
  • Free up time and energy to unlock your full creative potential
  • Adopt a growth mindset and go beyond the traditional 'passive income'  approach

Whether you're a millennial or retiree, this book will teach you the wealth generation secrets of the rich and enable you to become financially free now.

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Information

Publisher
Wiley
Year
2020
Print ISBN
9780730381679
eBook ISBN
9780730381648

PART I
Putting freedom first

CHAPTER 1
The primacy of values

Values, beliefs and results.

Most people want to be thin. And most people want to be rich.
It’s not like there aren’t new techniques, new recipes or formulas to do either of these things freely available and easily accessible on the internet today. So why don’t we do them? It’s not for lack of a secret technique that we haven’t achieved our greatest desires. Though it is very tempting to think this, which is why each year millions of dollars are spent by people who want to hear that the only reason they haven’t got what they wanted — why they haven’t gotten thin, or haven’t gotten rich — is because they didn’t have the right techniques. There is a persistent and very modern belief that there must be something more complex — a more sophisticated set of actions we could take — that could get us the result that eludes us.
The truth is that creating wealth is really very simple. But it’s really very simple in the way that losing weight is very simple: simple in theory. The steps you need to take are straightforward, but taking those steps is not. And like weight loss, we find it hard to believe that if the steps seem so easy, why haven’t we taken them? Why aren’t we rich?
We have lost the focus we once had on values and the power they can have over our actions, so we think that the reason we don’t succeed must be that there is a secret we are unaware of.

The Okinawans’ secret

The Okinawans of Japan have a culture that results in longevity. They have a set of values that turns on its head the way we think about food, eating and pleasure. As a culture, they put much prestige on living a long life; they value the 1000-year-old wisdom of Confucius and in doing so they end up valuing things we don’t. They value eating communally and they value eating ‘until you are eight parts out of ten full’ — a practice known as Hara Hachi Bu. What this means practically, is that they consume on average 1785 calories a day, compared with more than 2000 for the average Westerner. Their BMI measures between 18 and 22 compared to the average 26 or 27 of Westerners.
You can understand their success in two ways: from the bottom up — their culture promotes values that determine their beliefs and drive their actions — or from the top down: the thing that creates their extraordinary longevity is caloric restriction. It wasn’t until the 1930s that biochemists at Cornell University first observed that rats fed a restricted diet lived up to twice as long as those that were fed normally. Yet the Okinawans are the only human population to have a self-imposed habit of calorie restriction. So you can focus on techniques and count all your calories and weigh your food precisely; you can look up nutrient balancing charts, search out substitutes and so on. But the truth is, even with more sophisticated techniques than the ancient Okinawans ever had at their disposal, they still beat us hands down at actually ‘getting it done’. And that’s because we are hanging onto our values and trying to fight against them with more and more techniques. We are making a thousand hackings at the leaves when we could make one chop at the roots.
Sometimes we look inside ourselves for answers, asking, Maybe something inside me is holding me back, if I haven’t achieved what I want?
Although it’s a step in the right direction to look within for answers, our search is usually only cursory, as we tend to look to things that are readily accessible to our conscious minds. Things like, ‘The rich must have different beliefs from the poor and middle classes.’

Beliefs

You can believe that carbs will make you fat, and that the secret to losing weight is to eat a more natural diet. You can believe that exercising will give you energy and make you feel better, and eating rich foods will make you bloated and feel worse. Your beliefs may all be correct, but you are still not getting the result you want. Why?
Alternatively, you can harbour incorrect beliefs and still manage to get the result you want anyway. The best example I’ve seen of this is people who’ve attended a course, looking to improve their financial skills in a particular area so that they can be more prosperous. When asked, many will admit to the belief that they feel that the rich are ‘evil’. We certainly get that message loud and clear from our culture. Yet if you truly believe that, how can you want to become rich yourself? If it’s your beliefs that were holding you back from creating wealth, shouldn’t this particular belief hold you back from desiring to create wealth too?
Nobody wants to be evil. Not even Google.
So clearly there is something deeper that motivates us. A desire that is greater than your negative belief, which is pushing you forward despite what you believe. If you truly believe that someone is evil, yet you still greatly desire to be in their position, then desires can override beliefs. Nobody wants to be evil, but you clearly want to be rich — so much so that you are willing to make an exception to your beliefs if you achieve your goal: ‘I still believe that the rich are evil, but I’ll be different when I become rich.’
You probably should get rid of that belief. The rich are neither inherently good, nor evil. Having superpowers doesn’t make you a superhero any more than a supervillain. And wealth is like a superpower, the power to do more with the precious little time we have. It can even give you the power to fly when, without it you’d have to walk or take the bus! In the world of comics how you use your power determines whether you are good or bad. In that world, powers come to people randomly, but in our world wealth can be earned, created, stolen or, like a mutation, just inherited. Which is why I think how the rich get wealthy is far more important in deciding whether they are good or evil than just the fact that they are wealthy, and it is even more important than what they do with their wealth.
So it could help to rid yourself of the belief that being rich is evil, just as having better knowledge and beliefs about food and exercise should surely help the person who desires to lose weight to more easily achieve their goal. But it’s not enough on its own — even with all the information that’s available we’re still fatter than ever before.

Values come before beliefs

Obviously we need to dig a little deeper. We need to understand what actually motivates us. In fact, understanding what motivates us — how to get the most out of ourselves — could be the most important skill to have in our modern world, which places more and more cognitive demands on us each year.
Subconscious desires — or ‘what we value’ — are what motivate us.
Values are literally the level where we choose between the things we want — that is, we choose which things we value more. Economists call these ‘revealed preferences’. Take service stations, for example. People say they wish they could go back to the days when you could pull into a service station and actually get service. Someone would come out and pump your petrol for you, clean your windscreen, the whole nine yards. But if you say to those people would they be willing to pay as little as one cent more per litre for that service, would they pay it? It turns out the answer is no. When faced with a competing value — the desire to save money — people would rather hang onto their money and fill their own tank.
What does it mean to say that you really value being thin, for example, provided of course that you can shed the kilos by clicking your fingers or doing one weird trick? In any given situation we face competing values.
We often say we value being healthy and eating right, but when it comes down to a choice between the salad and eating until we are only eight parts out of ten full, and filling up on the hot/sweet/salty alternative, you know what we choose. Our actions reveal our preferences; we value comfort from food more than we value health or quality of life. So it’s not just that values are more important than beliefs, or techniques, but which value is dominant, that is important. It’s not what we say we value, but what we really value — our subconscious desires — that determines our results.
It’s not what we say we...

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. Introduction
  6. Prologue
  7. Part I Putting freedom first
  8. Part II The traps that come from not being free
  9. Part III Getting free first
  10. Index
  11. End User License Agreement

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