by Keelan Cunningham on December 29, 2011
When you think absolute financial freedom, think total rock star lifestyle! You can pretty much remove any financial limitations and pick up your air guitar for this one!
You will have achieved absolute financial freedom when you can pretty much do whatever you want, with whomever you want, as much as you want – without ever having to worry about money or work again.
So, assuming we’d still like to keep everything we have/do from our financial freedom list, we now add all the new dream capital items we’d love to have that are not in our financial freedom list. For example…Read More…
by Keelan Cunningham on December 28, 2011
You will have achieved financial freedom when you have accumulated a sufficient critical mass of capital to provide enough income for you to live the lifestyle you desire (accounting for inflation) without ever having to work again for the rest of your life. The keyword here is ‘desire’. This is what differentiates financial freedom from its predecessor, financial independence, which is defined more by what you ‘require’ to live reasonably comfortably.
In essence, Financial Freedom would include having and enjoying all the luxuries in life such as….Read More…
by Keelan Cunningham on December 27, 2011
The Legend of the Holy Grail: In this image scene from the film 'Indiana Jones and the Last Crusade' (1989) we can see Indiana (Harrison Ford) give his father (Sean Connery) a drink from the mythological sacred chalice to heal his wound. Financial Freedom may well be the holy grail of financial well-being but unlike the holy grail, Financial Freedom is potentially available to anyone who wants it bad enough.
Did you know that financial freedom is available to anyone who adjusts their approach to earning income and makes it their business to accumulate a specific dollar amount of money/capital? Well, if your goal is to reach the financial freedom finish line (and it should be!), then just like any goal setting, one of the keys is having absolute clarity on what your end goal looks like. So, what does financial freedom look like? Read on to discover the visual reality of financial freedom using this 5 minute formula…Read More…
by Keelan Cunningham on November 25, 2011
“To Infinity and Beyond: I love this image of this infinity pool overlooking the ocean. Not sure if it totally represents financial independence but it’s fair to say that you have achieved a certain level of financial independence to own a property like this…mortgage free of course!” ~ Keelan.
In previous posts I’ve explained what the first two steps to financial freedom are (Financial Protection & Financial Security) and how much does it cost to achieve each. In this next post we will review what Financial Independence means and what is the target amount of money we need to have to be truly financially free.
You will have achieved financial independence when, through your various investments, you’ve accumulated a critical mass of capital that when invested in a secure environment at a 8% rate of return, provides you with enough cash to meet each of the 6 goals of financial security previously mentioned i.e…Read More…
by Keelan Cunningham on November 23, 2011
"Rogue Trader, Nick Leeson (who interestingly now lives in practically insolvent Ireland) managed to bring down Barings Bank in 1995 all on his own! We now know our banks aren’t as financially secure as they would have us believe. Learning how to manage your own money and becoming your own best financial advisor has never been as important if you want to become financially secure." ~ Keelan
The first step on the road to financial freedom is financial protection. (see my previous post for more on this). In this post I want to explain step # 2: Financial Security and how much it money/capital it costs to actually achieve this.
You will have achieved financial security when through your various investments you’ve accumulated a critical mass of capital, that, invested in a secure environment at an 8% rate of return, provides you with enough cash to meet the following living expenses forever without you having to work again should you chose. For the purpose of this illustration we’re gonna…Read More…
by Keelan Cunningham on November 22, 2011
“Financial Protection: The Fort Knox Gold Bullion Depository in Kentucky, USA under construction circa 1937. President Roosevelt ordered its construction when the The Gold Reserve Act of 1934 effectively banned the private possession of gold. Anyone in possession of anything other than historic coins or jewellery had to sell it to the US Treasury.” ~ Keelan
The key thing to understand about financial freedom is this – no matter how much money you earn, it’s vital to understand that you can only ever achieve financial independence through the generation of non-earned (passive) income i.e. a return on a capital sum invested. Or to put it another way, making money work for us, rather than us working for money!
Now, what I wanted to do was figure out ‘what’s the number’? In other words, how much capital do you need to achieve: 1. financial protection; 2. financial security, and 3. financial independence?
Below I have calculated how much it costs to reach financial protection.
Financial Protection is…Read More…
by Keelan Cunningham on November 21, 2011
What does it take to reach the first 3 destinations on the road to financial freedom?
Everybody, no matter what their current financial circumstances, can achieve the rarefied reality of financial freedom. This article details what it takes to reach the first 3 destinations on the road to financial freedom. So, listen up, as what you are about to read would probably cost you a few hundred dollars if you went to a financial advisor to help work this out. Hopefully, this article will have saved you a trip and a few hundred dollars!
Myths & Misunderstandings about Financial Freedom
You’ll often hear people mention terms like financial security or financial independence in the course of everyday conversation. Within my own social and business circles, practically everyone I know desires some level of financial independence or freedom. However, I’ve found that financial well-being remains hidden and out of reach as a result of fuzzy concepts and even sketchier numbers people have in their head about what these terms mean. Therefore, the first thing I want to do here is dispel any myths or misunderstandings and reveal the true meaning of financial independence and financial freedom.
How Much Does Financial Freedom Really Cost?
The key thing to understand about financial freedom is…Read More…
by Keelan Cunningham on October 24, 2011
“Charging Bull: Otherwise known as the ‘Wall Street Bull’ is one of New York’s iconic images. Supposedly the bull is leaning back on its haunches and with its head lowered as if ready to charge…or is it ready to keel over!? Either way, it’s fair to say the theme is the sheer brute force, and unpredictability of the stock market.” ~ KeelanMarkets have been showing wild swings over the last month or so. The Dow Jones plunged 600 points one day then surged 400 points the next! Gold rises above $1,900/ounce and then slides back to $1, 840. Nail biting stuff! But, what should you do about it?
Markets volatility is a constant bedfellow of wealth building. Should you invest during a volatile market? If so, how can you grow and/or protect your money? Read on to discover this amazing 3-Step Formula!
Note: This information was accurate at the time of writing!! Markets will have moved on since so check the values yourself. That said, the overall tactics outlined below are typically valid during any volatile market.
The following are 3 solid ideas to consider implementing to protect and grow your wealth. Remember, there are no guarantees in life or investing so…Read More
by Keelan Cunningham on September 7, 2011
“Greed is Good!? Ahm, don't think so! Fictional Character, Gordon Gekko, from the 1987 Movie Wall Street, Stepped Too Far Outside His Comfort Zone and into the dark world of Risk Arbitrage and ended up Broke and in Prison!!! Not such a Sophisticated Investor after all 
” ~ Keelan
Federal Securities Law in the United States defines a ‘Sophisticated Investor’ as someone who has either a net worth of $2.5 million or has earned more than $250,000 annually for the past two years to qualify. An ‘Accredited Investor’ is defined as someone who has a net worth of $1 million dollars and an annual income of $200k for the last two years. However, don’t let those numbers scare you, read on to discover an alternative definition of a truly “sophisticated” investor and how you can become one.
Almost every financial advisor or institution considers this ‘Sophisticated Investor’ the big fish they are baiting their hook to catch. Many so-called sophisticated investors are charmed by the bright lights and shiny objects dangled in front of them by investment brokers and institutions. Oftentimes, the Sophisticated Investor is merely dropping sizeable chunks of cash into Hedge Funds and getting ripped-off in the fees (usually 2% of assets under management and 20% of returns) for the so-called privilege.
Here, we’re going to park the standard definition of the sophisticated investor as purveyed by high-rollers on Wall Street. By my definition you have become a sophisticated investor when the majority of your required income is being generated in the Investor Quadrant described earlier in this book.
Learning the ropes of building and owning a business will kind of… Read more
by Keelan Cunningham on September 7, 2011
"A Garage Somewhere in Silicon Valley, c.1975: I love this early pic of Steve Jobs (RIP) and Steve Wozniak. Apple officially started on April Fools Day, 1976, with the release of the Apple I. From Garage Start-Up to Global Behemoth….Amazing what corporate alchemy a couple of guys with ability and vision can end up achieving. Hats off!" ~ Keelan
There are many personal reasons why starting or owing a business may not be right for you. However, from a wealth creation perspective there really is no argument. Owning a business is just about the best thing you can do for your wealth creation journey. The following are just 10 wealth creation reasons why owning your own business is a good idea.
Reason # 1: Build an Asset that Provides You with Extra Cashflow
Reason # 2: Develop Business Skills and Acumen
…Read more
