Retraining Your Brain for Financial Success

Jeff Kikel

Financial independence is not solely the result of strategies, investments, or savings plans. At its core, it's a mindset game. The journey to financial freedom begins in the mind, with the beliefs, attitudes, and mental habits we cultivate. This blog delves into the crucial role mindset plays in achieving financial independence, offering techniques for developing a wealth-oriented mindset and sharing inspiring anecdotes and success stories.


The Importance of Mindset in Achieving Financial Independence


Our mindset shapes our reality, influencing our decisions, actions, and, ultimately, our outcomes. A wealth-oriented mindset isn't just about hoping for financial success; it's about firmly believing in your ability to achieve and maintain it. This mindset fosters resilience, creativity, and persistence to overcome challenges and seize opportunities. Understanding that mindset is the foundation upon which all financial strategies are built is the first step toward retraining your brain for economic success.


Techniques and Practices for Developing a Wealth-Oriented Mindset


Developing a wealth-oriented mindset requires intentional practice and commitment. Here are some proven techniques to guide you on this transformative journey:


1.Visualization: Start by visualizing your financial goals as already achieved. Imagine living your ideal life of economic freedom. Visualization not only enhances motivation but also helps in identifying the necessary steps to reach your goals. This does not mean you have to imagine living in a mansion and driving a Ferrari. It can be as simple as building a life where you can make it to your kid's soccer games and coach their team without worrying about work. True wealth is more than money; Freedom of Time is one of the three Freedoms identified through the Freedom Day Method.


2. Affirmations: Implement daily affirmations that reinforce your financial goals and the positive mindset needed to achieve them. Phrases like "I am capable of achieving financial independence" or "I control my financial future" can be powerful motivators. "I can participate in my kid's lives while they are growing up." Remember, there are only 18 summers until they leave the house. 


3. Education: Commit to continuous learning about personal finance, investment strategies, and the habits of financially successful individuals. Knowledge empowers you to make informed decisions and builds confidence in your financial journey.


4. Networking: Surround yourself with people who share your financial aspirations. Networking with like-minded individuals can provide support, inspiration, and valuable insights.


5. Gratitude: Cultivate a habit of gratitude. Appreciating what you already have shifted focus from scarcity to abundance is crucial for developing a wealth-oriented mindset.


How We Retrain The Brain In The Freedom Day Method


One of the biggest challenges for people who have worked in the corporate world for years is changing their mindset from a "Paycheck" mindset to a "Business Owner" mindset. 


In step 3 of the Freedom Day Method, we help people make this shift by doing the following:


1.Give Yourself A Target: In step 2 of the Freedom Day Method, we have people create a Bucket List with 10 Categories with 10 goals in each. 


2. 3 Simple Goals: Once you have your main Bucket List, you will choose 3 Goals from the list that can be completed in 6 months or less and cost less than $500. 


3.Choose a Freedom Engine: Once you have your goals, you will choose an activity that you can use to generate an income (outside of your job and not on credit) that you can utilize to pay for your 3 goals. This could be as simple as delivering food, driving rideshare, writing a book, or creating an audiobook. 


4. Reward Yourself: Once you make your first $500, do one of your 3 Bucket List goals. Then rinse and repeat. 


This strategy makes you start to think about your goals and dreams as being attainable. You will stop thinking about, "I can't afford it," or "I'll buy it on credit" and start thinking, "How can I afford it?"


Planes, Trains, and Automobiles


My own story. When I began to assemble the Freedom Day Method, I decided to eat my own cooking. If I told others to do something, I would ensure I did the same in my life. 


After creating my first Bucket List, I realized there was a consistent theme; I loved anything that rolled on the ground, flew in the air, and went fast on water. The other common thing is that most experiences could be had for less than $500. 


I decided to break 12 of these experiences into "Jeff's Planes, Trains, and Automobiles strategy for 2024". The experiences that were on the list were things like Driving a Lamborghini at the F1 track in Austin, Riding on the Chunnel Train to Paris, flying on a WW2 Bomber, Riding on a Cigarette Boat in Miami (Miami Vice fan growing up), learning to Drift Race, learning to Rally Race, etc. 


My next goal was to create some income that I could use to pay for one each month for 12 months. At the time, I had just taken a course on creating a publishing company and leveraging AI. I decided to quickly publish a book that could generate a consistent $500 per month or more, and I would be off to the races. 


Fast forward, that one book has been consistently generating $1000 a month for over 4 months now, allowing me to fund my $500 a month "Planes, Trains, and Automobile" Bucket List and using the remaining $500 per month to create more books to grow my monthly income from publishing. 


This story was not to brag but to say that while coming up with the money for over $6500 in Bucket List goals might seem impossible for many people, creating an informational product that will generate $500 per month is pretty straightforward. Plus, I only had to do the work once, and I enjoy the rewards forever, even after I have exhausted my 12 Bucket List Goals. 


Conclusion


Retraining your brain for financial success is a critical step toward financial independence. By cultivating a wealth-oriented mindset, you prepare the ground for the economic strategies and actions that will lead you to your goals. Remember, financial freedom isn't just about the money—it's about the freedom to live on your terms.


Are you ready to retrain your brain for financial success? Start by incorporating these techniques into your daily routine and explore "Overcoming The Retirement Trap" for more insights into developing a wealth-oriented mindset. Share your journey and successes with our community, and let's inspire each other towards financial independence.


A globe made out of dollar bills in the snow

Debt Snowball Method: Clearing the Path to Your Freedom Day

By Jeff Kikel • February 14, 2024
In the quest for financial freedom, debt often stands as a formidable barrier, casting a long shadow over dreams of a work-optional lifestyle. If you are in debt, you will never be truly free. Enter the debt snowball method, a strategic and psychological approach to debt repayment that's as effective as empowering. This article explores the intricacies of the debt snowball method, provides a step-by-step guide to its implementation, and shares real-life testimonials from those who've liberated themselves from the chains of debt, paving their way to financial independence. Explaining the Debt Snowball Method and Its Effectiveness The debt snowball method, popularized by financial experts like Dave Ramsey, focuses on paying off debts from smallest to largest, regardless of interest rates. This method gains its effectiveness from its financial strategy and the psychological wins it provides. By clearing smaller debts first, individuals experience quick victories, building momentum and motivation to tackle larger debts. This method turns the daunting task of debt repayment into a manageable and motivating journey. Step 4 of the Freedom Day Method: Implementing the Debt Snowball in Your Financial Plan 1. List Your Debts: List all your debts, excluding your mortgage, from the smallest to the largest. 2. Make Minimum Payments: Continue making minimum payments on all your debts, except for the smallest one. 3. Focus on the Smallest Debt: Allocate as much extra money as possible to the smallest debt. Cut back on unnecessary expenses or consider a side hustle to increase your repayment capacity. 4. Celebrate the Win: Take a moment to celebrate once the smallest debt is paid off. Pick one of your Bucket List Goals that can be paid for (without going back into debt) with the savings from paying off your debt. This victory is the first of many on your path to freedom. 5. Roll Over the Payments: Direct the money you put towards the first debt to the next smallest debt on top of its minimum payment. This "snowball" effect increases the payment size as you move from one debt to another. 6. Repeat Until Debt-Free: Continue rolling over payments to the next debt as each is cleared until you are completely debt-free. 7. Adjust as Needed: Life is unpredictable. Adjust your plan as necessary, but keep the momentum going. Even small progress is progress. I created a quick training and spreadsheet to help people going through the Freedom Day Method get out of debt. If you would like to obtain a copy, click this link. [Enter Link Here] Testimonials from Individuals Who Successfully Became Debt-Free Using This Method Sarah's Journey: Sarah, a special education teacher, found herself drowning in $40,000 of credit card and school debt. Feeling overwhelmed and unsure where to start, she discovered the debt snowball method. Within three years, Sarah became completely debt-free. She shares, "Seeing those small debts disappear gave me the strength to keep going. It was more than just paying off debt; it was reclaiming my life." The cool part of Sarah's story is that she only made around $40k per year when I met her but could still pay off $40k in 3 years. Her story is one of discipline and focus but also of the effectiveness of the Debt Snowball. Mike's Triumph: Mike, an IT professional, was skeptical of the debt snowball method, given its disregard for interest rates. It did not make sense to him to not focus on the higher rates first because he thought that he would be paying more in interest. However, with $45,000 in mixed debts, he decided to try it. The quick wins transformed his skepticism into belief. "Paying off my first debt was the motivation I needed. I realized this was about more than math—it was about momentum," Mike recalls. Two and a half years later, Mike celebrated his final debt payment. Emily's Story: After graduating with $25,000 in student loans, plus several credit cards that she got through the free T-shirt promotions on her college campus, Emily felt like her finances were on a perpetual treadmill. Unlike many others during the pandemic, Emily continued to make payments on her student loans. The debt snowball method changed her perspective and her life. "Each debt I cleared was a step closer to freedom," Emily reflects. Now debt-free, she's on her way to her Freedom Day, with savings and investments steadily growing. At 27, Emily saved almost $3000 per month as a single woman. She now owns her own home and is still saving around $2000 per month that she would be paying toward student loans. Most of Emily's friends are still drowning in debt and now have to make student loan payments that they had ignored for the last 3 years. Conclusion The debt snowball method is more than a strategy; it's a journey towards financial liberation, marked by each debt cleared and each victory celebrated. It teaches discipline, instills confidence, and, most importantly, removes the path to your Freedom Day. Focusing on small, achievable targets, the debt snowball method proves that financial freedom is within reach, one step at a time. Are you ready to tackle your debt and pursue financial freedom? Embrace the debt snowball method and start your journey today. For more guidance on achieving your Freedom Day and other financial freedom strategies, explore "Overcoming The Retirement Trap." Join our community, share your progress, and let's inspire one another towards a debt-free, financially independent life. 
A house is surrounded by money that is falling from the sky

Passive Income Streams: Your Key to Unlocking Financial Freedom

By Jeff Kikel • February 14, 2024
In today's financial landscape, achieving financial freedom is a goal many strive for. Yet, the path to reaching this goal seems elusive and uncertain. Enter the concept of passive income, a key that has the potential to unlock the doors to financial independence and a life of freedom. This blog post delves into the essence of passive income, explores its various sources, and outlines strategies to start and grow your passive income streams effectively. Understanding Passive Income and Its Importance Passive income is often defined as earnings derived from a rental property, limited partnership, or other enterprises in which a person is not actively involved. In simpler terms, it's making your money work for you, generating income even when you're not clocking in hours. The allure of passive income lies in its ability to provide financial security and freedom, allowing you to spend time on what truly matters to you without worrying about the next paycheck. Depending on your choice of passive income, the investment can be as small or as large as you want it to be, even starting with a few hundred dollars. The way I typically define it is that you can either: 1. Start a Business: this could be starting an online business or a service business, but the key is that you are building it from the ground up. In many cases, this can be done on a shoestring budget and built as you go. 2. Buy a Business: This typically involves buying an existing business from someone or purchasing a business system, which is typically called a franchise. This strategy will likely require a more significant investment upfront. However, it can also generate cash flow much faster. 3. Invest Your Money: whether investing in the stock market or other financial strategies, it can be highly lucrative if you have the skills to do this. 4. Invest In Real Estate: This strategy can initially be done with very little money or credit through Wholesaling. As your skills and resources grow, you can begin to invest in rental real estate and other strategies. The importance of passive income cannot be overstated. In a world where job security is increasingly uncertain, and the traditional retirement age is moving further out of reach, having a steady flow of passive income can provide a safety net that allows you to take control of your financial future. It's not just about building wealth; it's about creating a sustainable lifestyle that can withstand the ups and downs of the economy. Various Sources of Passive Income Detailed Passive income streams come in various forms, each with its own set of advantages and considerations. Here are some of the most common and effective sources: 1. Real Estate Investing: One of the oldest and most popular forms of passive income, real estate investing can include rental properties, investment trusts (REITs), and crowdfunding opportunities. Once again, wholesaling is a strategy that allows you to get started in real estate with little money and credit. It just requires a little legwork. The key to success in real estate is location, due diligence, and a solid market understanding. 2. Dividend Stocks: Investing in dividend-paying stocks can provide a regular income stream from the dividends paid out by companies. This requires research and a well-thought-out investment strategy to identify stable companies with a history of paying dividends. 3. Online Businesses: The digital age has opened up numerous opportunities for creating passive income online. This can include starting a blog, creating an e-commerce store, affiliate marketing, or developing digital products like e-books or courses. 4. Peer-to-peer lending: Platforms that allow you to lend money directly to individuals or small businesses in exchange for interest payments can offer an attractive return on investment, albeit with a certain level of risk. Many platforms allow you to start small and can pay decent interest. Many of these are in the real estate space. The main risk in this platform type is whether the money lent must be paid back. One advantage of most platforms in the peer-to-peer space is the ability to diversify with relatively small amounts of money. 5. Royalties: If you're a creative individual, earning royalties from your work (music, books, patents, or art) can provide a passive income stream each time someone purchases or uses your creation. With the advent of Amazon, you now have the ability to create one project, let's say a print book, that can be in paperback, hardback, Kindle (e-book), and Audible (audiobook), giving you a chance to earn royalties on all the formats. Strategies for Starting and Growing Your Passive Income Streams Starting and growing passive income streams require a strategic approach, patience, and, often, an upfront investment of time, money, or both. Here are some strategies to help you on your journey: - Start Small and Scale: Begin with a passive income stream that requires a lower upfront investment. You can reinvest your earnings into more significant opportunities as you learn and see returns. - Diversify: Don't put all your eggs in one basket. Having multiple streams of passive income can reduce risk and provide financial stability. One of the strategies that helped me in this area was to create one income stream and then use that stream to create other income streams. - Educate Yourself: Knowledge is power. Invest time learning about passive income opportunities, financial strategies, and market trends. Resources like "Overcoming The Retirement Trap" can offer valuable insights and guidance. - Automate and Delegate: The goal is to make your income as passive as possible. Use technology to automate processes and consider delegating tasks that require active management. - Stay Persistent: Building significant passive income streams takes time. Stay focused on your long-term goals, and don't be discouraged by setbacks. Real-Life Applications Consider the story of Emily, who started her journey to financial freedom by investing in a small rental property. Over time, she expanded her portfolio to include several properties and an online business that sells digital art. Emily's diversified approach to passive income allowed her to quit her 9-to-5 job. She uses a management company to manage her rental property, so she doesn't clean toilets. This has allowed Emily to travel, live in different countries, and create her art (remember, it is digital) from anywhere she has an internet connection. Conclusion Passive income is more than just a buzzword; it's a viable strategy for achieving financial freedom and living on your own terms. By understanding its importance, exploring various sources, and implementing effective techniques, you can unlock the door to a future where work is optional and financial stability is a reality. Ready to take control of your financial future? Start exploring the possibilities of passive income today. Dive into "Overcoming The Retirement Trap" for an in-depth guide on navigating the journey to financial freedom. Join our community for support, share your successes, and inspire others on their path to financial independence.
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