Have you ever found yourself thinking, “Once I reach this one financial milestone, then I’ll be able to enjoy life?” Maybe it’s a certain number of dollars in your retirement account. Or maybe it’s a certain annual salary that will cover all your expenses.
It’s natural to think that once your finances fall into place, your dream life will follow. But financial freedom is about more than just the resources you have. It’s about making those resources work for you so that you can focus on creating the life you want for yourself.
Time is a Valuable Resource
Many of us spend our lives believing that we need to climb the corporate ladder, checking off milestone after milestone so our salary keeps growing.
But while there’s certainly value in working hard, it’s important to remember that true financial freedom is impossible to achieve unless you also have control over your time.
This can be a difficult mindset to embrace, especially when you haven’t seen it modeled by the people around you. And even once you realize that your current path is not leading you to where you want to go, it’s hard to move past the fear of trying something new.
Understanding that time is the key to financial freedom is an important first step, but that understanding won’t serve you unless you’re able to act on it. So how do you begin to take back control of your time? It’s easier than you might imagine.
Put Your Money to Work with Passive Investments
If you want to gain greater control over your time, look for ways to build wealth without working harder.
Keep in mind that not all investments are created equal in this area: some require an enormous amount of time and energy, while others are completely passive. Even investments that are classified as “passive income” for tax purposes are not always a completely passive investment — take real estate, for example.
So, before you invest in something new, make sure you understand how much time and work it will require from you, and assess whether or not you’re willing to commit to that in your current phase of life.
Look for Tax Efficient Investment Vehicles
If your goal is to earn more without working more hours, then it’s probably frustrating to think about how much of your hard-earned money you’re giving away in taxes each year.
If you’re an Accredited Investor, you could be paying as much as 32-37% in federal income tax. But it doesn’t have to be this way!
Thanks to government incentives around oil and gas investing, Accredited Investors can now reduce the tax they pay on their earned, W-2 income by investing in carbon capture technology. In the first year you invest, you can deduct at least 80% of your investment against your earned income, leading to significant tax savings.
Tax efficient investments like these have changed my life, allowing me to build my wealth without sacrificing my time or having to miss out on the things that matter most to me.
Making Your 9-5 Optional
As your passive income increases (and your tax burden decreases), you become less dependent on your 9-5 for income. Eventually, you may reach a point where you have the option to quit your job.
But even if you choose to stay at your 9-5, there’s incredible freedom in knowing that you have options. With less pressure to earn more, you’ll feel freer to spend more time with your family, or take an extra vacation every year. And when you know you’re working because you choose to — not because you’re stuck — you’ll likely enjoy your job even more.
If you’re ready to start experiencing financial freedom in your own life, our team at FGCPTM would love to connect with you. Please fill out this form to get in touch and learn more about our direct, tax efficient investment opportunities.