Part 3 Steps 2 to 5 of Financial Freedom
Recap
What we read about in Part ONE was basics about financial freedom. In Part TWO of the Newsletter series of the FIVE part you learned abot the clarity on the First Step Purpose and Drive towards achieving Financial Independence or Financial Freedom.
Coming to the rest of the 4 Steps of the series on Fianacial Freedom, that we are going top cover today contains the following steps.
Step – 2 Reverse Engineering
Step – 3 Sacrifices
Step – 4 Power of Baby Steps
Step – 5 Attacks Vs Advice
The above Steps of Financial Freedom is being covered here based on the feedback that I have received from numerous people so that they can go through the same at one go and may not miss any steps as well as the continuity remains.
Thank you all for the response that has helped me in completing and publishing the same as One article.
Note: These are my personal views based on my experience. It’s only for clarity of thoughts about what Financial Freedom is and how one can attain Financial Freedom. I do not promise that what I have said here is sacrosigned. You may have your own method.
Table of Contents
Step 2: Reverse Engineering
Identify a Role Model
In your journey to achieve Financial Freedom, find someone whose success you admire and would like to be like them. Approach them for guidance and spend time learning about their journey. Ask them how they achieved their goals and what strategies they used. For example, if they achieved success in 10 years, ask for tips and aim to replicate 90% of that success in 6 years if not 100%. This approach can significantly shorten your path to success.
But you will have a question here.
Why Would They Help?
It’s natural to wonder why a successful person would take the time to mentor you. Start by seeking guidance from individuals who are a few steps ahead of you, rather than those at the pinnacle of success. These individuals are often more accessible and willing to help as they build their own networks. The advantage you will have with such achievers is that the journey they have gone through to achieve success is still fresh in their minds. As you progress, gradually seek advice from those who are more successful.
Clarity and Confidence
Through this reverse engineering, you’ll gain clarity on your path to Financial Freedom. Move at your own pace and avoid comparing yourself to others, as this can diminish your enthusiasm by almost 50%. Remember, everyone’s journey is unique.
Key Takeaway
Reverse engineering allows you to learn from others’ experiences, mistakes, and successes, enabling you to chart a more efficient path toward your Financial Freedom goals.
Step 3: Sacrifices
Redefining Sacrifice
Sacrifice is often misunderstood. It’s not about giving up something you love for someone else’s benefit. Instead, it’s about aligning your goals with your resources and making conscious choices.
If you are a fan of Indian movies it’s full of such stories. The Indian middle class families is again has similar misconception of sacrifice. Example could be: Wanted to buy a FLat but could not as they sent their children to school or for higher studies abroad.
Misconceptions
Many people think of sacrifice as giving up their dreams. A larger population of Indian middle class has this syndrome. The misconception of sacrifice. For example, not buying a dream house to pay for a child’s education. But if you knew education was a priority, why set the goal of buying the car in the first place? It’s essential to set realistic goals and be willing to make necessary adjustments.
Mark my words and I want to communicate that do not think Sacrifice as Sacrifice. Why because It’s something that you wanted to do but you did not do. I ask you why did you do that? Means that you wanted something to buy but you did not because of XYZ reasons, if you knew that money is required for your children higher studies then Why did you set such a Goal for yourself? Problem is we make our ambitions very big but do not want to put the effort required to achieve their Goal.
I am also from middle class but had the clarity of what sacrifice is. I had clear goals in front of me largely the future requirements for my child education, a roof for living retired life and post retirement life without any financilal crisis to be financially independent by achieving Financial Freedom to do what I want to do post retirement. I hope with this small paragraph of mine you would have undersstood your Life purpose and gols definition.
What I want to make you understand that if you look this as a sacrifice then this is not the WHY for you? i.e the purpose that you are looking for and driving.
Realigning Purpose
If you’re not enjoying your 16 hour work, clearly says that you are missing something and this something points that, it might be time to rethink your purpose. This takes you back to the drawing board of listing down your points, things that would make you happy. Long hours once considered hard work are now seen as toxicity. Reevaluate what truly makes you happy and adjust your goals accordingly.
You should have relook at your purpose, should rethink about your purpose similar to what you are missing and takes you back to the drawing board of listing down our points, things that would make you happy. These long working hours devoted to your job or business definitions have changed over a period of time. In our generations time it was called Hard Work but todays generation calls it Toxicity.
Do understand this very cleary and do not have any confusion about it. If and if you want to achieve what you want you will have to forgo many things. For example: Ok, I am just going to ask a quaestion and that will clear the doubts of what I have said above.
The Worth of Sacrifice
“Students who cracked IAS, IITs & IIMs, what did they forgo when they were preparing for these exams? Consider the efforts of students who crack tough exams like IAS, IITs, or IIMs. They forgo many pleasures to achieve their goals and that it’s worth. This “Penance” (Tapsaya) is very important as it prepares you for your Life. That’s why I said do not call Sacrifice as Sacrifice. This isn’t merely sacrifice; it’s a worthy investment in their future.
Personal Insights: In my experience, redefining sacrifice has been crucial. I’ve learned that what might seem like a sacrifice initially often leads to greater fulfillment and success in the long run.
Key Takeaway
Sacrifices should be seen as strategic choices that align with your long-term goals and values, not as mere deprivations.
Step 4: Power Of baby Steps
Small Steps to Success
Large, ambitious steps can lead to failure and demotivation. Instead, focus on small, consistent steps. Here remember consistency is key and understanding your target audience is crucial, whether you’re in a job or running a business.
Customer Insight
Any Goal you have you should have full GRIP on the pulse of your target audience. Always stay connected with your audience. The best way is to be on ground. Being amongst the top executives we used to spend time on the ground to understand market needs. The best example is “SALES”, because a Sale will happen if and only if , sales professionals succeed by knowing their customers’ preferences, like dislkes and communicating effectively.
You cannot create a product or service by sitting inside a room. You have to be on the ground and talk to customers to understand.
Building Momentum
Coming back to why take baby steps. The logic is
- As mentioned above if you take Big steps, you may get exhausted and feel demotivated as big steps do take time to complete. The expectations will be high as we tend to keep our targets high.
- Taking Baby Steps the job completion time is less and it forms the foundation for the 2nd Step which get created automatically. It starts happening slowly and immediately.
I will explain this with an example. Say you have started Weight lifting. Do you start straight with 1000Kgs. No, you start with say 100 Kgs and then gradually increase the weight. The moment you achieve your immediate target you move to the next weight higher than the last one you achieved, and steadily you reach your goal of lifting 1000kgs.
Small steps build a foundation for more significant achievements. Just like weightlifting starts with manageable weights and gradually increases, your goals should be approached incrementally.
You will come across a situation wherein you will be full of ideas and would like to close all of them, do follow the baby steps without digressing.
Baby step is like Tortoise and Rabbit race going slow and steaadily (here it means consistency) you reac your destination your goal and enjoy the journey.
Quote: Journey should not have suffering. People loose half of their motivationthinking about what others are thinking about – How, What, When.
Sustainability
I hope you have understood the importance of why to take baby step as well as we have seen that taking baby steps the project for lifting 1000kgs was sustainable. So taking baby steps ensures your projects sustainability and helps you stay motivated. Consistency is key to long-term success.
Personal Insights
My journey has taught me that incremental progress leads to sustainable success. Small wins build confidence and momentum, making it easier to tackle larger challenges.
Key Takeaway
Embrace the power of baby steps to build a sustainable and successful path toward your goals.
Step 5: Attack Vs Advice
Handling Criticism
When you share your goalswith people, do expect advice and criticism. Some may try to demotivate you by highlighting competitors or potential failures. So do not get demotivated by others Opinion. Remember Kishore Kumar’s song, “Kuchh To Log Kahenge Logon Ka Kaam Hai Kehna.” People will talk, but don’t let it discourage you. Infact it says many things that you are on the right path.
So, how do you track that you are on the right track. You can find the same by checking your reels on insta, facebook posts and reels. If that matches with your purpose then you are on the right track. I used to look at candidates profile on linkedin before taking an interview to understand their skills and their adaptability to organisation culture.
Learning from Competitors
You can beat your competitors as when they talk about your competitor and you can learn more about your competitor and do a better job than your competitor right from the start of your journey by avoiding mistakes that they might have done initially or innovate something better than them.
Use criticism as a learning tool. Understanding your competitors’ weaknesses can help you innovate and perform better from the start.
Filtering Advice
Remember there is no right or wrong opinion. Advices can be given a thought as mentioned above about your competitor. But if you put up a filter not to listen to any advice then it may also happen that you might missout to a good advice too.
Let me explain this with an example. In a football game players listen to their coach and no other person. Do you know Why? Because they understand that their coach knows the game better than others, as he nhas been through the journey himself.
Not all advice is valuable. Listen to those who have experience and are currently excelling in your desired field. Just like football players trust their coach, trust guidance from those who understand your journey.
Selective Listening
Remember there is no right or wrong opinion. Take opinions from people you aspire to be like. Fundamentals of business remain the same, but environments differ. Seek advice from those who navigate similar ecosystems, are currently there and doing best.
Personal Insights
I’ve found that the source of advice is crucial. Constructive criticism from experienced individuals can be invaluable, while unsolicited advice from unqualified sources can be detrimental.
Key Takeaway
Learn to filter advice and focus on insights from those who have the experience and success you aspire to achieve.
Frequently Asked Questions (FAQ)
1. How do I find a suitable mentor for reverse engineering?
Start by identifying individuals in your field whose success you admire. Reach out to them through professional networks like LinkedIn, attend industry events, or join relevant online communities. Begin with those who are a few steps ahead of you and gradually seek guidance from more successful individuals as you progress.
2. What if I don’t enjoy my job, but I need the income?
If you’re not enjoying your job, it’s essential to reassess your long-term goals and purpose. While you may need the income now, start exploring other opportunities that align with your passions and values. Consider side projects or further education to transition into a more fulfilling career.
3. How can I stay motivated when taking baby steps?
Celebrate small wins and track your progress regularly. Breaking down larger goals into manageable tasks makes them less overwhelming and more achievable. Consistency and patience are key. Remind yourself of your long-term vision and why you started this journey.
4. How should I handle negative criticism?
Not all criticism is constructive. Filter out negativity that doesn’t offer valuable insights. Focus on feedback from trusted sources who understand your goals and have relevant experience. Use criticism to learn and improve, but don’t let it deter you from your path.
5. Is it okay to change my goals midway?
Absolutely. As you grow and gain more clarity, your goals may evolve. Regularly reassess your objectives to ensure they align with your current values and circumstances. Flexibility is crucial for long-term success and personal fulfillment.
By following these steps—reverse engineering, making informed sacrifices, taking baby steps, and handling advice wisely—you’ll be well on your way to achieving financial freedom. Stay focused, be patient, and remember, this journey is unique to you.
Summary
In this blog, we’ve covered critical steps to achieving financial freedom:
- Purpose & Desires: Define upon your financial freedom Goals
- Reverse Engineering: Learning from role models to shorten your path to success.
- Sacrifices: Redefining sacrifices as strategic choices aligned with your long-term goals.
- Power of Baby Steps: Embracing small, consistent steps to build a sustainable path to success.
- Attacks vs. Advice: Handling criticism constructively and filtering valuable advice.
These steps are designed to help you navigate your financial freedom journey effectively. Remember, everyone’s path is unique, and it’s essential to move at your own pace and stay true to your purpose.
Key Highlights
- Learn from others’ experiences through reverse engineering.
- Redefine sacrifices to align with your long-term goals.
- Take small, consistent steps to build momentum and ensure sustainability.
- Filter advice to focus on valuable insights from experienced individuals.